This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Boeing 767 Removed From Life Support

The recent FedEx order reflects new thinking on fleet allocation by the shipper, which decided to slow deliveries of 777s to devote its capital resources to more rapid 767 deliveries. As a result, MD-11s that had been slated for domestic service will stay longer on international routes, while the new 767s fly domestic routes.

"The original plan was to bring in 777s and push the MD-11s in the domestic fleet and retire the MD-10s, and that had a very good return," FedEx CEO Fred Smith said in the company's Dec. 15 earnings call. "When the 767 was selected for the U.S. tanker mission and Boeing decided to keep the airplane in production, we looked at that and bringing it in to the middle" between narrow bodies and larger wide-bodies.

"Replacing the MD-10s was a higher return than the 777s and it pushed the MD-11s, if you will, back into the International system," Smith said.

"767s have stayed in service a lot longer than many people thought they would because of delays in the 787," he added.

>>FedEx Forecast Backs Up Fed's Outlook

Boeing worked with FedEx "for months" on the schedule adjustment, says Boeing Commercial Airplanes CEO Jim Albaugh in an interview with Bloomberg. He said the order enables Boeing to keep its 787 production line operating "in the out years."

For FedEx, delivery of the 27 new 767-300F will begin with three planes in fiscal 2014, followed by six per year in 2015 through 2018. They replace aging MD10s that have 30% less fuel efficiency.

Delivery of the 777s will be delayed slightly. Instead of adding six aircraft in fiscal 2013, FedEx will add four. Instead of seven in 2014, FedEx will add two. Additional delays are projected for 2015 through 2018.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

Readers Also Like:

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
BA $153.80 1.96%
FDX $176.80 -0.10%
UPS $101.93 0.20%
AAPL $129.09 0.49%
FB $79.75 0.99%


DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

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