FedEx and Boeing are in active talks regarding a passenger-to-freighter 777 conversion, according to financial filings.FedEx's 10-Q quarterly report filed with the US Securities and Exchange Commission on the 20th of March disclose active communications between FedEx and Boeing regarding the development of the 777 Boeing Converted Freighter, which would be built on the 777-200 and -200ER passenger aircraft.
Correspondence dated December 2, 2008 with the subject "Notification for a Boeing 777 Boeing Converted Freighter (BCF) Proposal" was exchanged between Richard Ochs Boeing Regional Director of Aircraft Contracts and Kevin Burkhart, Managing Director of Aircraft Acquisitions & Sales for FedEx.
The filing redacted the contents of the correspondence, providing no additional details beyond the reference in the letter's subject line, though refers to a "Letter Agreement" on the 777 Boeing Converted Freighter.
A FedEx spokesperson declined to elaborate on the reference to the aircraft in the company's financial filing but added that there are no plans to purchase a converted 777 freighter, and reaffirmed the company's intention to purchase 30 original-build 777 freighters.
FedEx holds 15 additional options for 777F aircraft.
Boeing first revealed it was undertaking cargo conversion development studies in September of last year.
Boeing said a 777 conversion program is still in the preliminary phase as a development study.
A Boeing spokesman added that there's no timeline for a program launch but suggested that a 777 BCF probably would not be available to customers until the middle of the next decade, around the time earliest 777 aircraft would be entering their third decade of service.
When first disclosed, Boeing showed the 777-200ER BCF offering cargo carriers a revenue payload of roughly 180,000lbs (81.6t), give or take about 15,000lbs, and the shorter-range 777-200 BCF a payload of roughly 145,000lbs (65.8t), again give or take about 15,000lbs.
In comparison, the 777 Freighter, which entered service with Air France in February has a revenue payload of 226,800lbs (103t).
At the time, Boeing spokesman stressed that these figures are very preliminary. "We haven't tied down the specific capabilities yet," he says. "We're working with a spread and we're not ready to discuss specific numbers yet."
Photo Credit FedEx
on April 9, 2009 1:04 PM | Reply
Jon,
I am not sure I get the significance/ import of this report. Boeing and Fed Ex are exploring the use of 777's BCF's as an alternative for Fed Ex's needs. Fed Ex is also confirming the interest in maintaining its order and options for the BA777.
But Boeing states that the BCF's are only in a preliminary study and will not be available for quite a few years. In addition, the converted models have a much lighter payload than the new model 777's.
So what is this report really reporting? Continued dialogue? Negotiations based on BCF pricing?
What am I missing or not understanding. Please clarify the subtext of your story
on April 9, 2009 1:10 PM | Reply
This fits more with the "understanding the needs of the customer" than an intent to purchase. It's not that they are actively seeking them out, but clearly FedEx is a likely customer for such an aircraft, as is any cargo operator with a need for widebody aircraft. It's unclear beyond that if FedEx would purchase them, but Boeing clearly wants their feedback as they work to develop such a program.
I think it just shows us how Boeing is engaged in development of this aircraft with potential customers.
Jon
on April 9, 2009 1:32 PM | Reply
Jon,
That's fair enough but not particularly earthshaking. Its what Boeing should be doing.
I thought that the costs would be so compelling on the conversion if older 777's were used, that this would be a new approach.
Anyway, thanks for the clarification. Its good to look into the future to take our minds off the present!
on April 9, 2009 2:13 PM | Reply
Jon,
One thing many of us do not understand is the difficulty of converting a passenger plane to a freighter.
Does this require alot of structural reinforcement and or interior work...creating stations for pallettes?
I thought it is an inexpensive way to use older planes but I may have a simplistic view and do not realize the difficultirs of flying transatlantic/treanspacific with freight .
Maybe you could clarify why it takes so long and is such an important decision.....
on April 9, 2009 4:52 PM | Reply
I see this as a possible sign that Fed Ex has turned sour on the MD11's. I suspect Fed Ex is exploring options to dump the MD11's as quickly as posslibe, hence the desire to entertain the idea of a low payload version (BCF) of the 777. Maybe FedEx has a handle on used 777's that are about to come on the market when the 787 hits the skies?
on April 13, 2009 2:40 AM | Reply
Fed-Ex's interest would likely be to replace the MD-10Fs (upgraded DC-10's with same type rating as MD11) of which they have sixty. Since the 777-200 has range and payload issues, only the 200ER would be suitable. But the GE90 version is a gas guzzler and they would struggle to find a viable number of PW-powered 200ER. The RR powered models which the 787 or A350 will substitute in BA, Emirates and Singapore Airlines fleets would create a maintenance overhead with different wings and engines from the 777-F's on order. I suspect "worth a look" will become "too complicated"
on April 13, 2009 11:28 AM | Reply
FedEx has many DC-10s which have been converted to MD-10s. These will hit the end of their life expectancy far sooner than the MD-11s will. They have over 60 MD-10s and these will need to be replaced by 777s since there won't be very many MD-11s left to convert.