This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Boeing 767 Removed From Life Support

Stocks in this article: BAFDXUPS

EVERETT, Wash. TheStreet) -- Boeing's (BA) venerable 767, nearly left for dead, has a new lease on life.

First, the resurgence of the Air Force aerial refueling tanker program in February meant 179 more aircraft for the 767 line. Then last week, FedEx (FDX) ordered 27 new 767s for use in domestic cargo transport.

Orders from Federal Express and the U.S. Air Force have revived Boeing's venerable trans-Atlantic 767 airplane.

"The 767 has been a great airplane that led the way for twin-engine overseas operations," says aviation consultant Scott Hamilton, who follows Airbus and Boeing as managing director of Leeham. The aircraft was, however, overtaken by the 777 and the Airbus A330 and, more recently, by the Boeing 787.

"The 767 has been on life support for several years now, carried forward by freight orders and a few passenger orders," Hamiltion says. "Now the lifeblood of the program is the tanker, and they are getting some cargo opportunities."

The 767 entered service in 1982 and made history because "up to that point, with the exception of a few charter carriers, all airlines used three- and four-engine airplanes" for trans-ocean flights, Hamilton says. Subsequently, aircraft makers developed additional twin-engine aircraft including the 777 and A330. The 767 remains the preferred trans-Atlantic airplane, flying the route more frequently than any other aircraft, Boeing maintains.

In 2011, Boeing delivered 19 of the 767s, including five each to UPS (UPS), ANA and JAL, and recorded firm orders for 40, including 27 from FedEx and five from the Air Force. Only 10 of the 767s were ordered in 2009 and last year combined, while 24 were ordered in 2008. In 2007, UPS ordered 27 of the 767s and other customers ordered nine.

The 767 provides "a good answer to our fleet management needs because it provides great flexibility, fast time in transit and sound cost performance," said Bob Lekites, UPS vice president for airline and international operations, in a statement in 2007.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs