FedEx orders 27 Boeing 767-300Fs but delays delivery of 11 777Fs

FedEx ordered (15-Dec-2011) 27 Boeing 767-300Fs and has exercised existing options for two additional B777Fs. However, the carrier plans to delay the delivery of 11 other 777Fs to balance air network capacity to demand. According to a Dallas Business Journal report, two 777Fs will be deferred from fiscal 2013, five from fiscal 2014 and one per year in fiscal 2015-2018.

The 767Fs will be a new model for the freight carrier's fleet of more than 690 aircraft. The new aircraft will be used to replace FedEx's fleet of MD10 jets, some of which are more than 40 years old. FedEx expects to take delivery of three of the aircraft in 2014, followed by six per year from 2015 through 2018. The order is valued at USD4.7 billion at list prices. [more - original PR - Boeing]

FedEx: "FedEx Express took action during the quarter to adjust its network, particularly in Asia, as recent inventory destocking trends have impacted demand for our FedEx Express services. The deferral of our 777 aircraft deliveries is a continuation of those efforts, enabling us to make appropriately-timed international 777 capacity additions over the next decade. With these actions, we expect fiscal 2013 capital expenditures to moderate to approximately USD3.8 billion," Alan B Graf Jr, FedEx EVP and CFO. Source: Dallas Business Journal, 15-Dec-2011.