Used B757s Will Increase Capacity, Efficiency

FedEx announced Monday it will buy  as many as 90 Boeing 757-200s on the used market to replace its older fleet of smaller and less fuel efficient Boeing 727s.

The overnight package shipping company will spend around $2.6 billion dollars for the two-engine Boeings. These planes will supplement and then replace the fleet of triple engine 727s FedEx has used for decades. The 757s are expected to carry 20% more cargo while using 25% less jet fuel.

Boeing ceased production on the 757 last November after producing 1,050 aircraft. It's not known at this time where Fedex will buy the planes or if the company will get their planes from more than one source. Speculation is high that if Boeing were contracted to do the modifications, it would encourage airlines to part with their current 757s in favor of a good deal on the new 787 Dreamliner.

The Bloomberg News Service reports  this news comes on the heels of a 10% increase in FedEx's fiscal first quarter profits due to increased global demand for the company's overnight shipping services.

The first 757 in FedEx livery will begin carrying packages in 2008 after cargo modifications to the airframe. It will take about eight years to completely replace the older fleet.

FMI: www.fedex.com