FedEx, UPS unfazed by Boeing freighter delays over supplier snafu

Boeing has not delivered any 767 freighters so far this year because of a supplier’s fouled fuel tanks, but the delays are not likely to impact operations at FedEx and UPS — the biggest buyers of the midsize cargo jet.

More than a dozen 767 freighters and U.S. Air Force KC-46 tankers are stuck in inventory because Triumph Group (NYSE: TGI) did not properly clean and conduct tests for primer paint adhesion before delivery to Boeing (NYSE: BA), the online aviation publication The Air Current reported this week. It’s not clear if the tanks were made before the Triumph aerostructures unit in Florida was sold to France-based Daher Aerospace last July.

The situation creates a risk that the primer could flake off inside the tank and clog fuel filters that protect the plane’s engines.

“Through Boeing’s standard process, a quality issue was identified on some 767/KC-46 Tanker components. We are continuing to work through our process with our supplier, regulator and customers to resolve the issue,” Boeing said in a statement. “We will deliver airplanes as we complete rework and we are not changing our overall delivery plans for the year. Our engineering analysis to date is that the issue is not an immediate safety of flight concern.”

Rework means reapplying the primer inside the tanks, The Seattle Times reported.

In addition to undelivered jets, the fuel tank problem could impact some planes already in service, dating back to 2021, Boeing said.

“We are working collaboratively with Boeing on a quality control issue on one aircraft, however it is not having any material impact on delivery,” parcel delivery giant UPS (NYSE: UPS) said in a statement.

UPS Airlines has 27 B767 cargo jets on order, seven of which are scheduled for delivery this year. UPS was the launch customer for the 767 freighter in 1995 and will have 108 aircraft when all of them are delivered. The new 767s will replace aging MD-11s that UPS will start to retire this year.

The apparent lack of concern about the manufacturing interruption likely has to do with the soft air cargo market. Carriers are not eager to add more capacity because it is not economical to fly half-empty aircraft. 

UPS canceled more than 200 flights originating from China and Hong Kong during the fourth quarter in response to lower international volumes. FedEx, which ordered 20 more 767s in 2021, reduced frequencies on more than three dozen routes and parked five aircraft in recent months. It plans to remove 11 more widebody freighters from service this year because of the economic downturn.

“We are aware of the issue and working with Boeing through their standard process. The safety of our operations is our highest priority, and there has been no impact on our ability to operate safely and serve our customers,” said FedEx spokeswoman Tammy DeGroff. 

FedEx (NYSE: FDX) is scheduled to receive the new batch of 767s in 2024 and 2025.

The Air Force says it hasn’t identified any immediate safety risk to the KC-46 tanker fleet and that no contamination has been found in the filters during routine inspections, according to The Seattle Times. 

Boeing last year delivered 18 767 freighters. The KC-46 is the tanker version of the same aircraft. 

Boeing, which lost more than $5 billion last year, has experienced a series of manufacturing quality issues with the 787 Dreamliner and other models during the past two years. Last month it again halted production of the 787 Dreamliner to double check a fuselage component.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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