FedEx Express plans to acquire 19 767-300F aircraft and convert four 777F orders

FedEx Express, a wholly owned subsidiary of FedEx Corp, agreed (29-Jun-2012) to purchase 19 additional Boeing 767-300 aircraft from Boeing. As part of the agreement, Boeing has agreed to convert four 777s - two in fiscal 2016 and two in fiscal 2017 - to 767 equivalent purchase value. FedEx Express currently operates 19 777Fs and now is committed to purchase an additional 24 777s. The 19 767s will be delivered from FY2015 to FY2019 and replace current MD-10 and A310-200 aircraft. The impact to capital spending in FY2013 and FY2014 is immaterial, and estimated FY2013 capital spending remains at USD3.9 billion. The 767s will provide similar capacity as the MD10s, with an approximate 30% increase in fuel efficiency and a reduction in unit operating costs of more than 20%. The action is in addition to a FedEx Express agreement with Boeing announced in Dec-2011 to purchase 27 new 767s for delivery between FY2014 and FY2018 and delay delivery of a number of 777s. In Jun-2012, FedEx announced the permanent retirement from service of 18 A310 aircraft and 26 related engines, as well as six MD10 aircraft and 17 related engines, bringing the total to 50 aircraft to be retired by the end of FY2013. [more - original PR]