Cargo major FedEx has inked a deal with The Boeing Company to order 50 767-300 freighters, which is a more fuel efficient aircraft than competing ones in the medium wide-body freighter market.
FedEx Express, a wholly-owned subsidiary of FedEx Corp, has the option to purchase another 50 767-freighters (767Fs) aircraft apart from the 50 confirmed order, as the firm continues to modernise its aircraft fleet.
Industry reports have put the 50 confirmed aircraft order at over $9 billion. The aircraft would be delivered from fiscal 2018 through fiscal 2023, FedEx said in a statement
FedEx has a broad portfolio of transportation, e-commerce, and business services. The company had annual revenues of $47 billion.
With 23 767s currently in its fleet, the company pointed out that the impact to capital spending in fiscal 2017 from the new order "is immaterial", and that the total capital spending for fiscal 2016 continues to remain at $4.6 billion.
David J Bronczek, CEO of FedEx Express, noted in the statement, that acquiring additional 767F aircraft was a continuation of the firm's air fleet modernisation programme and would enable the firm to reduce structural costs and improve fuel efficiency.
With this order, FedEx Express now holds a total of 106 firm orders for 767Fs from The Boeing Company through fiscal 2023.
Quick Facts * Cargo firm places biggest order ever for 767F planes * Includes option for 50 more 767F aircraft * Deal more than doubles FedEx fleet of 767Fs * Allows Boeing to extend production into next |