UPS (Louisville) will acquire 11 pre-owned Boeing MD-11 aircraft to expand the capacity of its air network.
The purchase brings the number of MD-11s in UPS's fleet and on order to 28. Fifteen of the 28 planes now are in service. UPS will take delivery of the first of these 11 aircraft during this year's first quarter, with the remaining deliveries extending through 2007. Financial details were not disclosed. The acquisition will not require any adjustment to capital spending plans.
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"The MD-11 has the technology, solid performance and strong operating economics that make it a wonderful fit for our international network," says Bob Lekites, vice president of UPS Airlines and international operations.
The MD-11 has the capacity to carry approximately 190,000 lbs of cargo and
a range of nearly 3,900 nautical miles. Although the MD-11 serves as UPS's primary
workhorse on international routes, the addition of these planes will support
the growth of the entire integrated global network. UPS's domestic overnight
and international air businesses have been growing strongly. During the fourth
quarter of 2004, for example, U.S. domestic overnight volume grew 4.1 percent
and average daily international export volume rose 13.5 percent, with Asia export
volume up 34 percent and export volume out of China up 125 percent compared
to the prior year.
"We continually evaluate and adjust the company's air network to meet the needs of our customers," Lekites adds. "Our strong growth has increased our need for large aircraft and the MD-11 is part of that solution."
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