FedEx eyes freighter order as e-commerce soars -sourcesFedEx eyes freighter order as e-commerce soars -sources Tue, February 8, 2022, 6:07 a.m.
By Eric M. Johnson and Tim Hepher
SEATTLE/PARIS (Reuters) - FedEx Corp is in talks with Boeing and Airbus to buy next-generation freighters as e-commerce soars, but the delivery giant has postponed a buying decision amid ongoing labor talks with pilots, industry sources said.
The world's largest cargo airline is the latest flashpoint for competition after Boeing last week launched a freighter version of its 777X to compete with a new Airbus A350 freighter.
Air cargo demand has been stoked by online shopping, supply chain disruptions and a drop in passenger flights - which often also carry cargo in their holds.
"Cargo is the only part of the jetliner market that has fully recovered, and is still growing," AeroDynamic Advisory analyst Richard Aboulafia said. "Given a very depressed twin aisle market, cargo widebody orders are the only ray of hope."
At one point FedEx had emerged as a possible launch customer for the 777X, joining Qatar Airways at a White House signing ceremony, but a decision is not now expected before the summer.
FedEx is locked in talks over pay and retirement with pilots who argue they helped deliver record profits and maintain the economy during the pandemic - discussions that could be strained by an immediate big-ticket investment, two of the people said.
"Aircraft acquisitions are strategic business decisions and we have deferred any new commitments as we evaluate and prioritize potential capital investments," a FedEx spokesperson said.
The Air Line Pilots Association, which represents FedEx crew, said it wants an agreement that recognizes their role. "Significant bargaining clearly remains," a spokesperson said.
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Memphis, Tennessee-based FedEx is a mainly Boeing customer, with 83% of its trunk fleet using models such as the 777, 767 and 757, and legacy McDonnell Douglas tri-jets, though it also operates 67 Airbus A300-600s.
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