FedEx buys four Boeing 767s, defers 777s

Washington DC
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FedEx has struck an agreement with Boeing to purchase four additional Boeing 767-300 freighters for delivery in fiscal 2014 and to defer two Boeing 777 freighters on order from delivery in fiscal 2015 to fiscal 2016, executives say on a 19 December analyst call.

The agreement will bring FedEx's total Boeing 767-300 orders to 50. The company says it is deferring the Boeing 777s in order to better match its capacity needs. FedEx's fiscal year begins 1 June.

This is not the first time that the Memphis-based operator has held off on taking Boeing 777 deliveries. On 29 June, the carrier converted four Boeing 777 freighters for delivery in fiscal 2016 and 2017 to equivalent purchase value of the Boeing 767, and also logged 19 additional Boeing 767 orders at the time. It also deferred a number of the aircraft type in December 2011.

FedEx Express president and chief executive David Bronczek told investors in October that the airline was very satisfied with the 777, but the carrier has deferred the aircraft because it has seen more customers shift away from faster priority shipments in favour of slower modes of transportation due to the economy.