Release Date: 07 November 2006
Release ID: 368
FedEx Express, a unit of FedEx Corp. (NYSE: FDX), announced today an agreement with The Boeing Company (NYSE: BA) to acquire 15 new Boeing 777 Freighter aircraft with options to purchase an additional 15 aircraft. The decision to purchase the 777F was made after Airbus announced significant delays in delivery of the A380. FedEx Express notified Airbus that it has cancelled its order for 10 A380-800Fs.
"Global demand for air cargo and express services continues to grow rapidly and FedEx has made significant investments in our network to meet customers’ needs and fulfill our business objectives. Therefore, it was necessary and prudent for us to acquire the Boeing 777 Freighter." said Frederick W. Smith, chairman, president and chief executive officer, FedEx Corp. “The availability and delivery timing of this aircraft, coupled with its attractive payload range and economics, make this choice the best decision for FedEx, its customers, shareowners and employees.”
FedEx Express continues to be Airbus' largest wide-body airplane customer and will add additional new and used Airbus wide-body aircraft to its fleet in coming years. Six new A300-600 aircraft are scheduled to join the FedEx fleet in 2007.
The Boeing 777 Freighter is the world’s largest twin-engine cargo aircraft with a range of more than 6,100 nautical miles and a revenue payload capacity of 171,000 pounds. This represents a 2,200 nautical mile increase in range and an additional 8,500 pounds of revenue payload over the MD-11F, which is FedEx’s primary long-haul aircraft. These advantages will result in more non-stop, point-to-point transoceanic routes with shorter flight times, enabling improved service offerings to FedEx customers. FedEx Express is expected to take delivery of four of the 777 aircraft in calendar year 2009, eight in 2010 and the remaining three in 2011.
“The Boeing 777F will allow FedEx Express to fly directly between major markets and hubs in Asia, Europe and the U.S. with more freight and in less time than it takes today, improving fuel efficiency and lowering total operating costs,” said David J. Bronczek, president and chief executive officer, FedEx Express.
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