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FedEx In Talks with Boeing & Airbus

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FedEx is apparently looking to replace it's older and less efficient jets. The FedEx Board is set to meet tomorrow to discuss the matter, but there may not be a decision set it stone fore quite some time. The deal for the new aircraft may reach into the Billion Dollar range; considering a Boeing 767-300 will cost about $167.7 Million, and $203.6 Million for an Airbus 330-200. Some of the aircraft may be second hand passenger jets that the Memphis FedEx may convert to cargo jets. Read more… (www.bloomberg.com) More...

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canuck44
canuck44 0
My bet is FedEx will go the used/converted route...FedEx over the years have acquired only a minority of their fleet from the factory, the 777F being the notable exception. There are likely to be a large number of well maintained 767s available as the 787 program begins arrive for customers. It is to Boeing's advantage to have a market for these air frames to improve sales of new aircraft.

Look for some three way deals for an entire fleet from a large carrier (like they made for Air Canada 727s) with spares. For FedEx it is like two or three for one with used Boeings and maximizes return for the airline, turning over the aircraft as Boeing delivers new ones.

Airbus is not likely to have a lot of used 330s around and the 340s are much too expensive to operate as freighters. That same scenario does not exist for three way deals with the 350 years away.
tyketto
Simple question to ask..

are any of these going to replace the A306s they are already using? Those are nearly as old as the DC10s they are flying.
99NY
99NY 0
I would think it would be a no-brainer for Express to choose the 767 over the A330, despite the lower hauling capacity. FedEx is quickly becoming an all-Boeing jet fleet, so the savings on parts and crew training alone over the next 20 or so years of airframe life will probably save millions.

Sad to see the 727's being phasd out though.
HunterTS4
Toby Sharp 0
sure miss seeing the 72's
canuck44
canuck44 0
There is an interesting political scenario arising from this situation. Boeing 767-200s and 300s have been converted in Israel and Singapore with significant Boeing input. There is a lot of 767 expertise in Ethiopia, Brazil, Germany.

Meanwhile Boeing has been screwed by the NLRB in the USA. While Boeing has their BCF program in the US, they can save a ton of money on a three way deal by having the conversions (mostly floor strengthening, new doors, winglets, avionics upgrade and possibly engines) done by a Third Party in another country under their supervision.

This would serve as a lesson to the current administration (including their surrogates at the NLRB) and the unions and make the Boeing bid much more attractive financially.
FedExCargoPilot
good move by FedEx, i hope they get both a330s and 767s, but will the a350 have a cargo version?

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