FedEx Express to Acquire Boeing 777 Freighters

FedEx Express, a unit of FedEx Corp. (Memphis, Tenn.), signed an agreement with The Boeing Company (Chicago) to acquire 15 new Boeing 777 Freighter aircraft with options to purchase an additional 15 aircraft. A dramatic example of the impact that a supply-chain and production delay can have on sales, the decision to purchase the 777Fs was reportedly made after Airbus, the European aircraft consortium based in Toulouse, France, announced significant delays in the delivery of its A380. FedEx Express 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 CEO, 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.

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