Guess that's the question. If I were junior, I might be pretty concerned about these options. I can't find it anywhere, so if someone knows the answer, might help some folks out making big decisions. I think it would be a bad idea to let the orders possibly go to a competitor, but our higher c-suite types have mentioned at every recent earnings call about reduced capital expenditures.

 

There is copies of documents referring to the order in the latest 10-Q filing to the SEC. The documents aren’t very straight forward to understand and their is some redaction, but it appears like the delivery dates were changed by FedEx or Boeing.

See for yourself they start on digital page 47 of the pdf posted on the investor relations page. Its the December 19 10-Q

 

Eactly what i'm trying to figure out. Doesn't specify.

 

Do we really need more airframes? If the CEO Raj already said we are in lock down mode? $3B in savings he wants. And we already have triple the airframes as our competator in every gateway, especially in Asia. I foresee the airline stagnating or shrinking if they do what they say and truck more. And along with the USPS reduction.

 

According to JBs cool video we're growing! Not shrinking! Tricolor is going to save the day!

 

Do we need air frames currently. No, but will we in the future yes. Could they cancel the orders and save a bit of change, yes, but is that the best decision, probably not.

They have to address the aging fleet at some point. And they already have an order locked in for 767s from years ago, which means that price doesn’t reflect the massive amounts of inflation that just occurred over the previous 3 years. Another issue is any good airplane has a long line of buyers, and it also takes a long time to build out an order.

So if they cancelled it, they would have to turn around and place another order and pay a much higher price to accomplish ultimately the same thing which is replace the aging fleet.

what I think they did, is pay a penalty and delayed the deliveries. Thats what the 10-Q seems to indicate, because it does say the parties are agreeing to a change of delivery date.

it makes sense to pay a penalty to not have spare aircraft flying around half empty depreciating unnecessarily.

what doesn’t make any rational sense is cancelling the order of a perfectly specd airframe FedEx will absolutely need to replace a good portion of the fleet. Oh and factor in the new emissions standards coming I think there is no chance they cancel it. But it is all speculation on my part.

 

I thought one of the reasons for the 767 continual options was we were grandfathered into the new Europe emission standards are someone mentioned.

 

I heard the same thing from flight technical. We got the waiver last fall.

 

From the 10Q as of Nov 30, 2023 we have 50 options for B767F and 23 options for B777F aircraft. Specific information that you are talking about is not public knowledge, I would assume under NDA between FedEx and Boeing. Depending on who told you this and the context under which it was said would help you guess the validity, although I would venture to say we won’t hear about any additional aircraft orders until a contract is inked.

These are in my mind the obvious replacement for the Md-11.

 

looked back and it’s not in the 10Q. Link for the stat book on the investor relations page, you will find the info there: https://s21.q4cdn.com/665674268/file...-Stat-Book.pdf