FedEx Corp. (FDX) disclosed late Thursday that it reached a deal earlier this month to buy 14 Boeing Co. (BA) 757 passenger jets from United Airlines and modify them for cargo transport.
FedEx didn't disclose the purchase price of the aircraft but said it will start taking delivery this year and receive all 14 by the end of 2015.
It has options to buy an additional 16 of the jets from United Airlines, a unit of United Continental Holdings Inc. (UAL), provided certain conditions are met, FedEx said in a filing with the Securities and Exchange Commission.
FedEx spokesman Jess Bunn said the deal, reached March 8, is part of the shipping company's ongoing fleet modernization effort. FedEx has been working to retire older jets, such as three-engine Boeing 727s, and replace them with newer aircraft.
Boeing 757s are twin-engine aircraft and more fuel efficient. They've been out of production since 2004, however, and United Airlines has said it plans to retire its fleet of them and replace them with Boeing 737-900ERs.
FedEx didn't disclose the purchase price of the aircraft but said it will start taking delivery this year and receive all 14 by the end of 2015.
It has options to buy an additional 16 of the jets from United Airlines, a unit of United Continental Holdings Inc. (UAL), provided certain conditions are met, FedEx said in a filing with the Securities and Exchange Commission.
FedEx spokesman Jess Bunn said the deal, reached March 8, is part of the shipping company's ongoing fleet modernization effort. FedEx has been working to retire older jets, such as three-engine Boeing 727s, and replace them with newer aircraft.
Boeing 757s are twin-engine aircraft and more fuel efficient. They've been out of production since 2004, however, and United Airlines has said it plans to retire its fleet of them and replace them with Boeing 737-900ERs.
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