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 approved an FAA bill granting Boeing a five-year waiver (until 2033) to continue producing 767 freighters for FedEx and UPS, exempting them from international clean engine standards set to begin in 2028.
Lobbied by Boeing, FedEx, and UPS, this extension acts as a temporary "bridge" until Boeing can develop a new freighter, such as a 787 variant, which is still 8-10 years away.
Freighters produced under this exemption between 2028 and 2033 may primarily be limited to domestic U.S. operations due to non-compliance with international emission rules, although some countries might still permit access.
The waiver ensures a continued supply of the cost-effective 767 freighters for express carriers and helps maintain market competition against converted cargo jets.

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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.