Advertisement
News
Advertisement

FedEx Buying 4 Boeing Freighters

Wed, 12/19/2012 - 10:47am

NEW YORK (AP) -- FedEx Corp. has ordered four new Boeing 767 freighters in an ongoing effort to replace its old workhorses with more fuel-efficient planes.

Financial terms weren't disclosed. The sticker price on a 767 freighter is about $182.8 million but discounts are commonplace.

The planes will allow the world's second-largest package delivery company to dump some of its MD-10 aircraft, many of which are more than 30 years old. The new planes are also larger and can carry more on fewer flights.

FedEx has removed some planes from its network to better match slow-growing demand around the world. Shifting habits of consumers and businesses — who are willing to wait for deliveries and pay less — are hurting its air business. FedEx said Wednesday that operating income in that segment fell 33 percent in the three months that ended in November, while its other segments grew.

The planes will be delivered in 2015. As part of the deal, FedEx also pushed off delivery of two 777 freighters to 2016 from 2015.

FedEx is based in Memphis, Tenn. Boeing Co. is based in Chicago with its commercial airplane operation in the Seattle area.

FedEx shares rose $2.50, or 2.7 percent, to $94.86 in morning trading.

Topics

Advertisement

Share this Story

X
You may login with either your assigned username or your e-mail address.
The password field is case sensitive.
Loading