BRENDAN SOBIE / SINGAPORE
FedEx Express is looking at acquiring and converting to freighters Boeing 737-300 or 757-200 passenger aircraft as it begins to ponder possible replacements for its large Boeing 727 fleet.
Cargo conversion providers say FedEx has asked them for proposals and could make a selection within the next couple of months.
FedEx operates about 120 727s, all within North America. The carrier is initially expected to acquire about 20 replacements, with follow-on orders likely.
Industry sources say FedEx has begun to search for blocks of 737-300 and 757-200 passenger sister ships that may be for sale. FedEx plans to purchase rather than lease the aircraft and has discussed possible deals with Boeing, GE Capital Aviation Services and passenger airlines. The manufacturer has also been talking to Boeing about a bulk deal for new 757-200 freighters, but the manufacturer says there is a gulf between what the carrier wants to pay and what Boeing wants to charge.
FedEx declines to comment on potential aircraft acquisitions.
The 727 remains the workhorse in the US domestic express package market, although it has already been phased out in Europe because of stricter noise regulations. FedEx is believed to be favouring the 757 over the 737, but 737 providers believe declining demand for overnight services within North America could swing the competition in their favour. A split 737/757 order is possible.
If FedEx opts not to add any 737s, its new fleet of ATRs could also potentially replace 727s in weak domestic markets. FedEx is already acquiring 19 ATR 42s from American Eagle and eight from Continental Airlines to replace its fleet of 35 Fokker F27s. FedEx is seeking more ATR 42s and could supplement these with larger ATR 72s.
Source: Flight International
