FedEx Express is flying ahead with its fleet modernisation programme with a massive order for 50 more Boeing 767-300 freighters, worth up to $10 billion at list prices, and options for 50 further ones.
The express company is in the midst of a long-term multi-billion dollar modernisation of its air fleet, with older inefficient planes being gradually replaced by newer more fuel-efficient ones that offer more flexible use of capacity on regional and long-haul routes.
The 50 B767s are due to be delivered over a six-year period from the 2017/18 fiscal year through to 2022/23. The company has also taken out options for a further 50 B767s, which could join the fleet at a later date. Overall, FedEx Express now has firm orders for 106 B767Fs for delivery over the next eight years through to fiscal year 2023.
“Acquiring additional 767F aircraft is a continuation of our very successful air fleet modernisation program and will enable us to reduce structural costs, improve our fuel efficiency and enhance the reliability of our global network,” said David J. Bronczek, president and chief executive officer of FedEx Express.
FedEx did not disclose the investment for the 50 freighters, which are worth nearly $200 million each at list prices, according to US media. However, airlines normally get large-scale discounts for orders of this size.
The company stressed that total capital spending for the current fiscal year (2015/16) remains at $4.6 billion, while the impact to capital spending in fiscal 2017 from the new order is immaterial. In the last few years FedEx has invested more than $1 billion a year on aircraft, including $1.8 billion in fiscal 2015, $1.3 billion the previous year and $1.2 billion the year before that.
In June, FedEx announced that it was speeding up aircraft retirements, with 15 older planes leaving the fleet in Q4, 2015, and a further 23 planes would retire earlier than originally planned.
As of May 31, 2015, the FedEx Express air fleet totalled 647 freighters, including (in descending capacity size) 25 B777s, 56 MD11s, 49 MD10s, 21 B767s, 68 A300s, 21 A310s and 119 B757s. There are also 288 small cargo planes used on regional routes.
This fiscal year, 11 B767s and two B777s are due for delivery while eight MD10s and 11 A310s will be retired, reducing the overall fleet size slightly to 641 planes, according to the company’s Q4, FY 2015 statistics book.
A further 26 B767s and 10 B777s were already scheduled for delivery between fiscal year 2017 and 2021. Over the same period, 41 MD10s, 17 MD11s and 24 A310s are due to leave the fleet.
With the additional 50 B767s now ordered for 2017-23, FedEx looks set to operate a fleet with approximately the same total number of planes over the next eight years.
