FAA Reauthorization Bill Exempts Boeing 767 From 2028 Production Cutoff

Waiver from international fuel efficiency standards preserves FedEx, UPS access to preferred aircraft model.

Wednesday, May 15, 2024 at 04:33 PM ET

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A UPS Boeing 767-300 waits for its next trip at Dallas-Fort Worth International Airport. The express carrier operates 88 of the aircraft type. [Jim Allen/FreightWaves]

Key Takeaways:

The U.S. House passed an FAA bill granting Boeing a five-year extension (until 2033) to produce 767 freighters for FedEx and UPS, bypassing a 2028 international clean engine standard.
This waiver, lobbied for by Boeing and its express carrier customers, provides a bridge for freighter capacity until Boeing can develop a new 787 freighter, which is years away.
While internationally non-compliant, these extended-production 767s are expected to operate primarily domestically, though some international access might be granted by individual countries.
The exemption is critical for FedEx and UPS to maintain competitive shipping capacity and for Boeing to continue supplying a cost-effective mid-size freighter.

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The FAA reauthorization bill approved Wednesday by the U.S. House of Representatives includes language allowing Boeing an extra five years to produce 767 freighters for FedEx and UPS beyond the date when international standards mandating cleaner engine types kick in.

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 January 1, 2028, production deadline. The legislation previously passed the Senate and will be sent to President Joe Biden to sign into law.