FedEx orders 24 new freighters from Boeing worth $6.6 billion
The world’s largest air cargo carrier, FedEx Express, ordered 12 767 freighters and 12 777 freighters from Boeing valued at US$6.6 billion at list prices.
The companies jointly announced the deal on June 19 saying the move is part of FedEx’s continuing fleet modernization program as demand in the air freight industry picks up.
“We are taking another positive step in our fleet modernization program as we add more efficient, lower emission aircraft to our global fleet,” David L. Cunningham, President and CEO of FedEx Express, said in a statement. “The Boeing 767 and 777 Freighters have brought greater efficiency and reliability to our air operations. The 777, with its tremendous range characteristics, has allowed us to provide faster transit times around the globe. We are excited to add more of these aircraft to our fleet.”
The news came as the air cargo industry gathers strength with analysts forecasting it to increase by another 4-5 percent this year.
Air cargo carriers are adding capacity to keep up with demand, either by converting passenger airplanes into freighters or ordering new production cargo jets. With the latest order from FedEx Express, Boeing has sold more than 50 widebody freighters so far in 2018.
“We are honored that FedEx has again placed its trust on the wings of the Boeing 767 and 777. This repeat order is a big vote of confidence in Boeing’s market-leading freighter family and the long-term outlook for air freight,” said Kevin McAllister, president and chief executive officer, Boeing Commercial Airplanes.
FedEx Express and Boeing have a long-standing partnership. The express carrier is a major operator of the Boeing 757 Freighter and the largest operator of the 767 Freighter and 777 Freighter. FedEx is also a customer of Boeing’s Global Services business.
The 767 Freighter, based on the 767-300ER (extended range) passenger jet, can carry approximately 58 tons (52.7 tonnes) of revenue cargo with intercontinental range, making it a flexible platform for serving long-haul, regional or feeder markets.
The 777 Freighter is the world’s longest range twin-engine freighter. The jet can fly 4,900 nautical miles (9,070 kilometers) with a payload of 112 tons (102 metric tonnes or 102,000 kg). With the 777 Freighter, FedEx has been able to connect Asia with its hub in Memphis, Tenn. non-stop and reduce transit times by up to three hours. This has enabled FedEx to accept packages later in the day and still deliver them on time.
The 777 Freighter also uses 18 percent less fuel compared to the airplanes it replaces, and provides quieter takeoffs and landings that meet airport noise standards.