FedEx in talks with Boeing and Airbus to buy next-gen 777-8F or A350 freighters

Boeing 777-8F Freighter

FedEx is reported to be in talks with Boeing and Airbus to buy next-generation freighters to keep up with the soaring pace of e-commerce growth. However, sources indicated to Reuters that the company has not made a final buying decision yet due in part to ongoing labor talks with pilots.

Last week, Boeing last week launched a freighter version of its 777X to compete with a new Airbus A350 freighter. “Cargo is the only part of the jetliner market that has fully recovered, and is still growing,” noted AeroDynamic Advisory analyst Richard Aboulafia on the industry backdrop. “Given a very depressed twin aisle market, cargo widebody orders are the only ray of hope,” he added.

Boeing is called a front-runner to win a 777X deal from FedEx, although any delay is seen giving Airbus an opening to potentially land the business. A decision is not expected in the next couple of months.

The fuel-efficient twin engine Boeing 777F or Airbus A350F are needed to replace 76 older McDonnell-Douglas MD-11s and DC-10s flying with three engines.

As of October 2021 FedEx Express has 59 MD-11s with 53 in service and six parked, and a fleet of 17 MD-10s. The MD-10 trijet is a cockpit conversion of the DC-10 trijet designed to allow pilots of the MD-11 to fly the plane without having to qualify for a different type rating. FedEx requested it to streamline fleet operations, and Boeing delivered the first aircraft in 2000.