Boeing

The Boeing Company announced today it has signed a Letter of Intent to supply passenger-to-freighter modification services for 19 additional MD-11s for FedEx, the world's largest express transportation company.

The agreement envisions a Boeing-FedEx team managing conversion activities for the 19 airplanes, with Boeing Airplane Services providing the new parts and airplane-specific engineering required to convert the MD-11 passenger airplanes into freighters. As part of the deal, FedEx also has options for additional conversions beyond the 19 firm airplanes.

Boeing currently is under a separate contract to modify 11 MD-11s for FedEx, in addition to eight MD-11s that already have been delivered.

The deal is subject to approval by the board of directors of FedEx and FDX Corporation, the parent company of FedEx, and the signing of a definitive agreement.

Boeing Airplane Services would begin the engineering work for the 19 airplanes immediately following the definitive agreement. The airplanes would be modified beginning in 2002. Consistent with earlier MD-11 conversions for FedEx, other modification facilities in the industry would be contracted to perform the actual airplane modifications.

"We're proud that FedEx has asked Boeing Airplane Services to help in its ongoing MD-11 conversion activities," said Joe Gullion, president - Boeing Airplane Services. "This is another example of Boeing Airplane Services providing our customers with value-added modification and engineering support."

"Boeing Airplane Services is helping us meet our fleet requirements with effective and reliable passenger-to-freighter conversion support," said Theodore L. Weise, president and chief executive officer - FedEx.

Financial details of the proposed arrangement were not disclosed.

The MD-11 Freighter is the world's most advanced trijet freighter, offering a sophisticated flight deck and advanced automatic system controls.

The airplane has extended, intercontinental, nonstop range capabilities; low fuel burn per trip and large, cargo-carrying capacity. The MD-11F can carry 202,100-pound gross payloads and has a 98.25-inch maximum stack height. The main cabin will hold up to 15,530 cubic feet of palletized cargo, and the lower compartments will hold an additional 5,566 cubic feet of containerized or bulk cargo. All standard industry containers can be accommodated side-by-side in the lower deck.

Boeing Airplane Services offers engineering retrofit packages, avionics upgrades, passenger-to-freighter conversions, interior reconfigurations, recovery and repair services and airplane performance improvements for all Boeing commercial airplanes. It also provides technical consulting and general contracting support for passenger and cargo airlines.

Boeing Airplane Services is part of the Boeing Customer Services organization, which offers the aviation industry's broadest array of support resources. There are more than 10,000 Boeing airplanes in operation today around the world.