I know some of you guys will put your negative spin on this but I see it as brighter news in these tough economic times..............


12-Jan-2009

Entry into a Material Definitive Agreement, Change in Directors or Principal Officers


Item 1.01. Entry into a Material Definitive Agreement.

On January 9, 2009, FedEx Corporation's wholly owned subsidiary Federal Express Corporation ("FedEx Express") and The Boeing Company entered into Supplemental Agreement No. 4 (and related side letters) (the "Supplemental Agreement") to the Boeing 777 Freighter (B777F) Purchase Agreement dated as of November 7, 2006 between Boeing and FedEx Express.

In the original purchase agreement, FedEx Express agreed to purchase 15 B777F aircraft and obtained an option to purchase an additional 15 B777F aircraft. In the Supplemental Agreement, FedEx Express exercised this option and obtained another option to purchase an additional 15 B777F aircraft. Accordingly, FedEx Express has now agreed to purchase a total of 30 B777F aircraft and holds an option to purchase an additional 15 B777F aircraft.

The Supplemental Agreement also deferred the scheduled delivery of certain of the B777F aircraft. The agreement, as supplemented, now provides for delivery of four B777Fs in FedEx's fiscal year 2010, four in fiscal 2011, three in each subsequent fiscal year through fiscal 2018, and the remaining one in fiscal 2019.

As a result of the exercise of the option to purchase the additional 15 B777F aircraft and the rescheduled delivery dates, the net change to FedEx's expected capital expenditures is an increase of approximately $15 million in fiscal 2009 and of approximately $2.75 billion over the following 10 fiscal years.

A copy of the Supplemental Agreement will be filed as an exhibit to FedEx's quarterly report on Form 10-Q for the fiscal quarter ending February 28, 2009.

I say they open another 777 bid, so the F/O seat goes EVEN MORE JUNIOR which will in effect, further screw up their furlough option.

Wow, Starting to confirm the rumor I heard from a MD11 LCA. He said his 777 friends, who are starting the 777 program, told him that by 2019 we will be an all Boeing fleet (777 and 757). That means all B-727, A300 and MD11-10 gone, what is that, over 360 airframes?

I wonder if that scenario would include 767s. They have a common type rating with the 757, right?

Right . . . . a scheduler's dream !

We could probably talk them into narrow body pay for it if they promise to increase international per diem by 32 cents.

Post of the day. No truer words have been spoken.

That kind of lean forward, aggressive planning is a trademark of your company. It's also part of the reason some of you guys are nervous about a potential furlough now. A fleet of 777s and 757/767 would be smart. Would you guys opt for a single pay scale or stick with what you have now?

I'll believe it when I see it. We can't even get the exit of the DC-10 right, much less three other aircraft.

I can't see how this is possible because we are not scheduled to get the 30th 777 until 2019. Unless they up the orders and deliveries and start converting old 777 to freighters. We would have a lot of A/C to replace. Approx 130 MD-10/MD-11 and 125 Buses.