Continuing the company’s drive to modernize its fleet, FedEx Corporation (NYSE: FDX) announced this week that they have signed a deal to acquire 50 more Boeing Co. (NYSE: BA) 767-300 freighter aircrafts, marking the largest order in history for that specific plane model. With the deal inked and moving forward, the new order from FedEx will allow Boeing to extend the 767-300 production line into the next 10 years.
To be noted, the contract for the 50 new 767-300 freighters also includes options to order an additional 50 aircrafts that is worth approximately $9.97 billion according to their listed prices.
According to Boeing forecasts, the new aircrafts are expected to be delivered incrementally over the years of 2018 to 2023. Currently, FedEx’s order for Boeing’s 767 freighters stands at 106 units.
David J. Bronczek, President and CEO of FedEx, commented on the recent order of new aircrafts, “Acquiring additional 767F aircraft...will enable us to reduce structural costs, improve our fuel efficiency and enhance the reliability of our global network.”
Though many people believe that global air freighting is at a decline, the Boeing Company believes that is the farthest from the truth. Boeing believes that a global freighting will still grow at an annual rate of nearly 5% over the next two decades.