FedEx Express Plans to Acquire 19 Boeing 767-300F Aircraft and Convert Four 777 Freighter Orders

FedEx Express, a wholly owned subsidiary of FedEx Corp. FDX, today agreed to purchase 19 additional B767-300 aircraft from The Boeing Company BA to continue to improve the efficiency and technology of the FedEx air fleet. As part of the agreement, Boeing has agreed to convert four Boeing 777s -- two in fiscal 2016 and two in fiscal 2017 -- to 767 equivalent purchase value. FedEx Express currently operates 19 long-range 777 freighters and now is committed to purchase an additional 24 777s. The 19 767s will be delivered from fiscal 2015 to 2019 and replace current MD-10 and A310-200 aircraft. The impact to capital spending in fiscal 2013 and fiscal 2014 is immaterial, and estimated fiscal 2013 capital spending remains at $3.9 billion. The 767s are substantially more fuel efficient and reliable than the aircraft they will replace. The 767s will provide similar capacity as the MD10s, with an approximate 30 percent increase in fuel efficiency and a reduction in unit operating costs of more than 20 percent. They also increase efficiency by sharing spare parts, tooling and flight simulators with the Boeing 757s which are part of the FedEx air fleet.