Boeing to Refit Passenger Planes for UPS Shipments - TheStreet

Boeing

(BA) - Get Report

and

United Parcel Service

(UPS) - Get Report

have entered an agreement, or so the

Wall Street Journal

says. No, Boeing isn't going to cut out the middleman and begin overnighting unruly children in large, well-taped boxes. The airliner, in hopes to boost the service end of its business, will refit up to 30 of its passenger jumbo jets into cargo planes, ready to ship as much as UPS can pack in there.

Company officials value the transaction at $1.5 billion, which is a whole lot more than you got for your used vehicle during the last trade in. The terms of the deal haven't been fully disclosed, but look for Boeing to take MD-11 passenger planes and convert them into cargo planes, delivering them over the next five to six years. If every option in the contract is exercised, then Boeing could be asked to provide up to 30 planes.