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Boofer

Posted: Tue Sep 26, 2006 10:56:49 am

Boofer
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Joined: 17 Jun 2005
Posts: 949
Location: Carmel, IN

FedEx to spend $2.6 bln to replace fleet

By Ana Campoy
Last Update: 3:18 PM ET Sep 25, 2006


SAN FRANCISCO (MarketWatch) -- FedEx Corp. on Monday said it will spend $2.6 billion in a multi-year program to buy and modify about 90 Boeing Co.'s 757-200 aircraft to replace FedEx Express's fleet of Boeing 727-200s. The company said it doesn't expect the program to materially affect earnings. Replacing the planes will result in lower operating costs and reduce green house emissions, it added. FedEx included the capital impact of the program on the current fiscal year in its first-quarter earnings release. It added that its capital spending forecast for 2007 remains at $3 billion. FedEx Express expects to bring the new aircraft into service between 2008 and 2016. Fedex also said it has named ITT Corp. Chief Executive Steven Loranger to its board for a one-year term.

Can I get a peanut crumb with that thimble of Coke?

ATAIndy

Posted: Tue Sep 26, 2006 06:45:26 pm

ATAIndy
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Joined: 15 May 2006
Posts: 728
Location: West Lafayette, IN

I just don't understand it. Had FedEx placed this order 2 years earlier, they could still be belting out 757's in Seattle, but I guess second-hand is cheaper though. Still, are there really 90 757's sitting around unused?

Why do my favorite airlines end up going defunct??

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Boofer

Posted: Tue Sep 26, 2006 10:37:27 pm

Boofer
Site Admin

Joined: 17 Jun 2005
Posts: 949
Location: Carmel, IN

That's what everyone over on A.net is wondering. Those in the know seem to think that there are some used 757's coming available as leases end, especially from some Latin American and smaller European carriers. And I believe cargo operators generally go for lower-cost used aircraft because they don't get as much utilization (as many turns) out of their a/c as pax carriers do. Also because it keeps their depreciation expense down, which can be a huge consideration for an asset-intensive business.

Can I get a peanut crumb with that thimble of Coke?

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