Air France-KLM to sell two new Boeing 777 freighters to FedEx

AIR FRANCE-KLM has signed a letter of intent to sell two new Boeing 777 freighters, which have not been delivered yet, to the FedEx Corporation.

"This sale is in line with the current slump within the global air cargo industry," the carrier explained.

It said the sale would not affect the number of flights operated by Air France-KLM's cargo division, which currently operates five freighter aircraft, a spokesman for the airline said.

The spokesman declined to say how much FedEx is paying for the two Boeing 777 freighters, which have a list price ranging between US$252.5 million and $260.5 million, reported Newark's Journal of Commerce, adding that Air France-KLM has Europe's largest cargo fleet of 29 freighters, but plans to reduce them by transferring some to its Amsterdam unit Martinair and selling others to rivals, maximising belly hold space on passenger aircraft and its combi passenger/freight planes.

The report added that Air France-KLM's cargo unit registered a loss of $219 million loss in the second quarter ended in September 2009 compared to a profit of $15 million for the same period a year earlier.

The airline does not expect its cargo division to break even for at least another 18 months.

(Source: www.schednet.com)