AP News

FedEx to buy additional aircraft from Boeing

MEMPHIS, Tenn. (AP) — FedEx Corp. said Friday that its subsidiary FedEx Express will buy 19 additional 767 aircraft from The Boeing Co. to improve the efficiency and technology of its fleet.

"FedEx Express is positioning itself for more profitable growth by modernizing its aircraft fleet and better aligning its U.S. domestic air network to match current and anticipated shipment volumes," David Bronczek, president and CEO of FedEx Express, said in a statement.

FedEx said earlier this month that it would permanently retire 50 aircraft by the end of fiscal 2013.

The company said Friday that the new aircraft are more fuel efficient and reliable than the MD-10 and A31-200 aircraft that they will replace. The 767s will provide similar capacity as the MD10s, but are 30 percent more fuel efficient and have 20 percent lower operating costs. They also increase efficiency by sharing spare parts, tooling and flight simulators with the Boeing 757s, which are part of the FedEx air fleet.

FedEx said the aircraft will be delivered from its 2015 through 2019 fiscal years and will not increase its 2013 capital spending, which is set at $3.9 billion.

The deal is in addition to an agreement it announced in December to purchase 27 new 767s and delay delivery of a number of 777s.

FedEx, based in Memphis, Tenn., reported earlier this month that slow global economic growth will crimp its earnings over the next year and it vowed to make significant cost cuts to counter any drop in package shipments.

Shares of the company rose $2.82, more than 3 percent, to close at $91.61.

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