FedEx eyes expansion
11 / 09 / 2011
FEDEX is looking hungrily at the aircraft manufacturers’ menu, as it considers a purchase of up to 50 aircraft.
The integrator is looking at Boeing and Airbus widebodies, with a focus on 767s and A330s.
The FedEx board discussed the matter on 7 September but a final decision is not expected before the end of the year.
Based on list prices of US$167.7 million for a new 767-300 freighter and $203.6 million for an A330-200 freighter the deal is likely to reach into the billions.
Conversion on second-hand 767 passenger models is also on the cards, a source familiar with the subject said.
FedEx’s ambitions of expansion however come at a weak time in the US economy. FedEx also risks losing U.S. Postal Service business, for which it is the largest contractor. The Postal Service is pressing suppliers for $1 billion in annual savings as it faces possible insolvency as soon as 30 September.