UPS - Congress Exempts Boeing 767 Freighter From 2028 Production Cutoff | Benzinga
The bill gives Boeing (NYSE: BA) a bridge, in case the express carriers need extra capacity, until it can develop a new freighter next decade. Multiple industry sources familiar with the process said FedEx (NYSE: FDX) and UPS (NYSE: UPS) joined Boeing in lobbying Congress for a reprieve from the Jan. 1, 2028, production deadline. The legislation previously passed the Senate and will be sent to President Joe Biden to sign into law.
At face value, a split from international consensus would limit operation of freighters produced between 2028 and 2033 to the domestic U.S. market, but it's possible some countries could permit access, according to experts. Freighters delivered before the end of 2027 aren't covered by the enhanced carbon emission rules and won't face any restrictions.
Under International Civil Aviation Organization (ICAO) agreements, commercial aircraft manufacturers effectively can't sell aircraft that don't meet the 2028 carbon emissions standards. The U.S. Environmental Protection Agency adopted the fuel efficiency standard in 2021 with the FAA following suit in February.
Even if post-2027 freighters end up being limited to domestic flying, it makes sense for FedEx and UPS to buy them, said Tom Crabtree, a Seattle-based industry consultant and former Boeing market analyst, in an email exchange with FreightWaves.
"The 767-300 production and converted freighter provides the lowest trip costs of any widebody freighter in production today while simultaneously allowing service to smaller markets where 50 metric tons of payload, or more, simply isn't needed. They also have sufficient range to serve international markets to/from Europe and/or northern South America from the US" he said.
Boeing stopped making the 767 as a passenger jet many years ago. It also supplies a tanker variant for militaries. FedEx and UPS are the only customers for the 767-300 freighter. ...