Dallas, Texas 07/09/2015 (Financialstrend) – According to Leeham News and Comment reports, FedEx Corporation (NYSE:FDX), the package carrier is expected to place a large order of $10 billion with Boeing Co (NYSE:BA) for cargo airplanes. The analyst firm based its report on industry media, Market Intelligence, which focuses on news and analysis of the largest aircraft builders in the world. According to the publications outlook, the latter is likely to order 50 Boeing 760-300 Freighters to beef up its delivery processes. Considered ‘the old lady’ of the Boeing planes, these freighters are expected to augment existing fleet.
FedEx is yet to receive an earlier order of from Boeing for 35 of the same freighter model. The fresh order of 50 is expected to further expand the freighter 767 aircraft fleet. An additional 10 aircraft in the 777 Freighter planes segment is also expected to be placed. It is reported by Leeham, that the company had earlier deferred these planes but will now place an order for the same planes.
Experts now speculate that FedEx Corporation (NYSE:FDX) will have to fork out nearly $199.3 million per plane, given that it is list price at which Boeing sells these aircraft. Hence, estimated cost for the entire order of 50 is expected to be $10 billion. Meanwhile, the list price for 777F is $318.7 million, and a 10 plane order of the same model is expected to cost nearly $3.2 billion.
FedEx Corporation (NYSE:FDX) aircraft fleet is currently positioned at 378 planes. Of these it has 88 of them from Boeing competitor, Airbus, in the A300s as well as the A310s. Apart from these, there are 105 planes which belong to the McDonnell-Douglas make. The rest of the fleet consists mainly of Boeing Co (NYSE:BA) Freighters.
However, the aircraft producer has been struggling in recent times to sell more of the 777F models despite concessional selling rates.