FedEx orders Boeing freighters for US$6.6b

A Boeing-777F freighter of  Lufthansa Cargo AG sits on a tarmac after landing at the Yemelianovo airport in Russia's Siberian city of Krasnoyarsk, March 31, 2014. — Reuters pic
A Boeing-777F freighter of Lufthansa Cargo AG sits on a tarmac after landing at the Yemelianovo airport in Russia's Siberian city of Krasnoyarsk, March 31, 2014. — Reuters pic

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CHICAGO, June 20 — FedEx Express, a unit of package delivery company FedEx Corp, has ordered 24 medium and large freighters from Boeing Co, the world's biggest planemaker said on yesterday, as e-commerce demand boosts air freight business.

The new airplanes, Boeing's 767 and 777 freighters, have a list price of US$6.6 billion (RM26.4 billion), said Boeing, which has sold more than 50 widebody freighters so far this year, including the latest order.

Air freight demand is expected to increase 4 per cent this year, according to the International Air Transport Association (IATA). Last year was the best for cargo since 2010, with traffic growth more than doubling to 9 per cent, three times the growth in capacity. While trade tensions are rising, the industry is counting on e-commerce continuing to soar, with more people buying products online for quick delivery.

FedEx's order comes nearly four months after rival United Parcel Service Inc said it had ordered 14 additional Boeing 747-8 cargo jets. — Reuters

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