FedEx has ordered 50 Boeing 767 freighter airplanes, worth about $4.2 billion after standard discounts, and with options to buy a further 50 of the jets. And Eva Air ordered five Boeing 777F freighters.
FedEx announced Tuesday it has agreed to purchase 50 Boeing 767-300F freighter aircraft, with additional options to purchase 50 more of the jets.
The firm order is worth almost $10 billion at list prices, though according to pricing data from aircraft valuation firm Avitas, the order’s value is about $4.2 billion after standard discounts.
FedEx, which has historically bought airplanes cheaply nearing the end of their production life, likely got an even better deal.
“I will only say, the terms are very favorable,” said FedEx spokesman Jess Bunn.
Most Read Business Stories
- Amazon's $3,000 signing bonuses irk workers who got $10 coupons
- Pandemic gave locals fleeting taste of a tourist-free Hawaii
- ‘Ugly, ugly time’: Work-from-home era crushes U.S. dry cleaners
- Jobless claims soar as new restrictions hit restaurants and other Washington state businesses
- For sale: $6 million Whidbey Island survival compound, stocked to withstand a pandemic VIEW
The first 50 aircraft will be delivered between 2017 and 2023. FedEx now has a total of 106 of the 767 freighter jets on firm order.
The 767 is produced at a rate of 1.5 jets per month and Boeing plans to increase that rate to 2 per month next year.
The 767s will replace FedEx’s aging MD-10 tri-jets.
“Acquiring additional 767F aircraft … will enable us to reduce structural costs, improve our fuel efficiency and enhance the reliability of our global network,” said David Bronczek, chief executive of FedEx Express, the freight carrier’s airline unit.
Separately on Tuesday, Boeing finalized an order for five 777 freighters from Taiwan’s Eva Air.
That order is valued at more than $1.5 billion at list prices, though Avitas data pegs the real value after discounts at about $840 million.