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Sometimes ships become obsolete as newer models replace existing builds. In some cases retooling the ships makes sense to bring them up to new tec level specs. However in other cases it makes more sense to replace those ships. Action code 255 is the action code you need to scrap old fleets. It's a move and do so all you need to do is provide a planet you own in the Location #1 box. The planet must have a shipyard. Then put the fleet you want to scrap in the Fleet #1 box. The entire fleet will be scrapped along with all ships in the fleet. So if you have a fleet where you only want to scrap certain ships make sure you transfer all the others out of the fleet before you scrap it. You will recover 10% of the build cost of the ships so you even get some RU's to start building those replacement ships.