FedEx signs on for 27 767-300Fs

Washington DC
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FedEx plans to add 27 Boeing 767-300F freighters to its fleet beginning in 2014.

The company in a statement said it signed an agreement covering the freighters, and plans to take delivery of three aircraft in 2014 followed by six per year in fiscal 2015-2018.

FedEx's decision to opt for the -300F follows evaluations it conducted with Boeing earlier this year for the development of a new freighter based on the 767-400ER, which would offer a production bridge to the US Air Force KC-46A refuelling tanker.

"The 767s were selected as the best choice to begin replacing FedEx Express's MD10 aircraft, some of which are more than 40 years old," the company said. FedEx concluded the 767-300Fs will provide similar capacity as the MD-10s, with improved reliability, an approximate 30% increase in fuel efficiency and a 20% reduction in unit operating costs.

At the same time FedEx revealed plans to delay delivery of 11 777Fs. Two aircraft are being deferred from fiscal 2013, five from fiscal 2014 and one per year in fiscal 2015-2018 in an effort to balance air network capacity with demand. FedEx stated it is exercising two 777F options targeted for delivery at the end of its refined delivery cycle.

"FedEx Express took action during the quarter to adjust its network, particularly in Asia, as recent inventory destocking trends have impacted demand for our FedEx Express services," said Alan Graf, FedEx executive chief financial officer. "The deferral of our 777 aircraft deliveries is a continuation of those efforts, enabling us to make appropriately-timed international 777 capacity additions over the next decade. With these actions, we expect fiscal 2013 capital expenditures to moderate to approximately $3.8 billion."