FedEx Buys Boeing 757s From United to Cut Fuel Costs - Bloomberg
FedEx Corp. (FDX) said it agreed to buy 14 Boeing Co. (BA) 757 passenger jets from United Continental Holdings Inc. (UAL) and convert them into freighters, part of a plan to save on fuel costs with newer, more efficient planes.
FedEx began buying 757s in 2007, as passenger airlines began shedding them, to phase out its older Boeing 727s, echoing a shift already under way at United Parcel Service Inc. (UPS) The used 757s, which Boeing stopped building in 2005, are cheaper than new models and still provide a class of planes that can carry 20 percent more freight while burning a third less fuel than the three-engine 727s.
FedEx Corp. (FDX) said it agreed to buy 14 Boeing Co. (BA) 757 passenger jets from United Continental Holdings Inc. (UAL) and convert them into freighters, part of a plan to save on fuel costs with newer, more efficient planes.
FedEx began buying 757s in 2007, as passenger airlines began shedding them, to phase out its older Boeing 727s, echoing a shift already under way at United Parcel Service Inc. (UPS) The used 757s, which Boeing stopped building in 2005, are cheaper than new models and still provide a class of planes that can carry 20 percent more freight while burning a third less fuel than the three-engine 727s.
