Analyzing FedEx Express Airlines Asset Structure Research Paper

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FedEx Express Airlines Asset Structure

In definition, the asset structure of an organization refers to the different kinds of assets that are held by that particular organization. These various kinds of assets are delineated in the statement of financial position of the organization (Ambrose and Megginson, 1992). This particular essay will discuss the asset structure of FedEx. It will consider the company's main concerns with regard to airline scheduling, and whether the company owns or leases its equipment. It will also take into consideration the average age of FedEx's fleet and what their route structure is like.

What are the primary considerations in airline scheduling?

Scheduling regulates where and when the airline will fly. Schedules are constructed to make best use of long-standing profitability. The revenue and cost linked with every schedule are centered on very dissimilar understandings of the equivalent information (Barnhart and Smith, 2012). There are a number of key considerations in airline scheduling. Some of these considerations include the route structure, the fleet being used, the maintenance of the different bases, facilities and also the facilities of the crew bases (Barnhart and Smith, 2012). The expenditures of working the schedule are reliant on the flight legs, which instigate the number and kind of aircraft being employed. The schedule ought to take into consideration the cost and accessibility of cabin and flight deck crews, in addition to the necessity that aircraft cycle through maintenance headquarters at consistent intervals.

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Consequently, the schedule also determines the location and size of ground facilities, and the number and location of crew and maintenance bases (Barnhart and Smith, 2012).

Do they own or lease their equipment?

FedEx owns and also leases their equipment. For instance, in the year 2011, FedEx purchased 45 Boeing B777F Freighters to improve and enlarge its fleet for the reason that these airliners have a superior load capacity and superior fuel efficiency for elongated trips within its network. In addition, the company is carrying on with the replacement of Boeing 727s that have become of age with Boeing 757s that are more fuel efficient. Having purchased these airliners, the company has been able to decrease the expenses incurred on cost and also improve its services. As a result, these transformations have assisted FedEx to increase its operating margins to 6.5% in 2011 (Goodluck, 2012). In addition, FedEx does also lease its equipment. According to Goodluck (2012), in assessing the company, the substantial amount of operating leases that FedEx make use of as part of its infrastructure necessitates attention. For instance, in 2011, the company had operating leases adding up to a present value of $13.992 billion, which takes account of 11% of its total aircraft fleet (Goodluck, 2012).….....

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