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FedEx plans to consolidate its Los Angeles-based maintenance operations into Indianapolis facilities as part of a cost-cutting maneuver, the company confirmed Monday.
FedEx, which employs 5,800 people at its Indianapolis International Airport Hub, expects to eliminate as many as 400 jobs from its aircraft maintenance center based at Los Angeles International Airport. Trade outlet Freight Waves first reported the news.
The company said the decision to terminate maintenance activity at the LAX hangar was triggered by the expiration of its lease there in June 2024, creating the opportunity to gain cost savings by combining resources at the Indianapolis hub. It plans to offer the 400 employees affected by the consolidation—most of whom are maintenance technicians—other roles with the company.
“FedEx regularly evaluates its networks and makes adjustments to enhance service, improve operational efficiencies, and lower the cost to serve,” the company said in a statement. “Upon expiration of this lease agreement, FedEx … will move the heavy maintenance capability to our Indianapolis hub.
“This adjustment only affects the maintenance hangar facility. FedEx will continue to operate throughout the Greater Los Angeles area. As such, the transition will be seamless to customers, who can expect the same reliable service they receive today.”
The 950,000-square-foot facility in Los Angeles performs a large portion of FedEx’s major scheduled and unscheduled aircraft repairs, equipment upgrades and other servicing, making it one of a handful of the company’s facilities capable taking apart its aircraft to conduct inspections and other maintenance work. It is focused on upkeep of the company’s McDonnell Douglas fleet, but those aircraft are largely being phased out.
Indianapolis is home to the world’s second-largest FedEx facility, behind only the company’s Memphis headquarters. It has about 35 facilities across Marion County alone—accounting for air and ground services—and employs about 13,700 people across the state.
It’s not clear how many employees will be hired as Indianapolis assumes some of the responsibilities of the Los Angeles facility. The company is already in the midst of a $1.5 billion expansion locally, adjacent to the airport’s terminal.
Indianapolis International Airport declined to comment.
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I wonder if the United Airlines Maintenance Facility, built during Hudnut’s tenure on the opposite side from FedEx, could somehow be utilized? It was barely open when UA decides to consolidate elsewhere.
That facility is already occupied.
https://alfpolis.sitehost.iu.edu/united-airlines-indianapolis-maintenance-center/
CMA
If I’m not mistaken, FedEx is already dk8ng maintenance on their jets
In that facility that was originally built by Delta Airlines.
Another business flees from CA
Which still has the largest GDP of all states, and it’s not even really close. Businesses move. Their lease was ending and they saw an opportunity to consolidate operations and save money. Don’t read too much into it.
To add on to what Marshall said, Indiana’s total GDP is barely higher than the San Diego metro area, which is only the third largest metro area in California. LA isn’t going to suffer from losing a relatively small handful of blue collar FedEx jobs.
California has a huge GDP but continually losing these types of jobs will not help it in the long run.
They’re also not all moving to Indiana. Check Texas, for example.
We lost more major businesses in the last 24 months than California did….
So I don’t understand your comment
A mere five words, Anthony, and the wokies come out like a feral wolfpack.
California has lost more tech jobs alone than Indiana has lost since peak COVID. And while I’ll concede that California has a vastly bigger tech sector than Indiana, the state is losing population.
Per the Feb 2023 BLS unemployment, California is well over a percentage point worse than Indiana and its rank (#43) is actually an improvement over what it was last year, when it was still firmly lodged at last or second to last.
It ain’t the land of milk and honey that it was in the 1980s. Things can change, but, right now, the political will seems to be absent. With responses like this, continually making excuses, one can see why.