Oct. 20, 2015. (c) Leeham Co.: Two developments at FedEx may give a boost to Boeing’s slow-selling 777 Classic program.
Pilots approved a six year contract that had been open for some time. Pay increases an average of 10% and other contract benefits were achieved.
Separately, The European Union may be ready to approve FedEx’s acquisition of TNT Express, with a target closing date in the first half of next year.
These two elements are key to the prospective order for 10 777Fs we reported July 8. We understood at the time that the 777F order was contingent on a new pilot contract and EU clearance of the TNT deal.
Concurrent with that timing, Boeing on its 2Q earnings call a few weeks later indicated it had 44 orders and commitments for the 777 Classic YTD. At the time, Boeing’s website showed firm orders for 34 777 Classics. We speculated then that the 10 commitments might be FedEx, but never were able to confirm this.