Fedex to Spend $5 Billion on Boeing 767 Planes

FedEx Corp., the only current commercial customer for Boeing Co.’s 767 cargo jet, is in talks to acquire at least 25 more of the twin-engine freighters, two people familiar with the matter said.

The shipping company’s directors met in the Seattle area over the weekend, where the deal was on the agenda, said the people, who asked not to be identified because the details are private. The planes’ list value would be about $5 billion, one of the people said, before the customary discounts.

Boeing would gain valuable sales amid a tough market for wide-body aircraft in general and cargo planes in particular as it develops a version of the 767 as an aerial refueling tanker for the U.S. Defense Department. FedEx would extend its strategy of replacing older, less fuel-efficient planes with new models.

“We constantly work on aligning our fleet plans with our business needs,” FedEx spokesman Jim McCluskey said by e-mail. “We have nothing to announce at this time.”




Marc Birtel, a Boeing spokesman, said the Chicago-based planemaker had no comment.

FedEx rose 0.2 percent to $171.24 at the close in New York, while Boeing advanced 0.8 percent to $147.75.

Aircraft upgrades are part of FedEx’s effort to cut $1.6 billion in costs at its FedEx Express airline unit. The 767’s capacity is similar to the older MD10s in FedEx’s fleet and is about 30 percent more fuel efficient than that three-engine model.

Pioneering Twin

Developed in the 1980s, the 767 pioneered long-range flights for twin-engine planes. Over the past decade, it has been overshadowed by Boeing’s 787 Dreamliner and Airbus Group SE’s A330 aircraft. Both the civilian and military versions of the 767 are built at Boeing’s plant in Everett, Washington.

FedEx now has 35 unfilled orders for the 767-300 freighter, and adding 25 more would push the Memphis, Tennessee-based company past United Parcel Service Inc. to become the all-time largest customer for that model. The jet retails for $199.3 million, according to Boeing’s website.

The shipping company said last month it had permanently retired 15 planes and 21 related engines. FedEx had 673 aircraft as of Feb. 28.

FedEx Said to Be in Talks on $5 Billion of Boeing 767 Planes
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Photo:Duncan Stewart - LAX