Boeing's Aging 767 Enters Its Golden Years

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Who will fly the three planes Guggenheim is converting? Rimmer ticked off the prospects. He said FedEx recently indicated it may be interested in converted 767s. DHL has new 767 freighters from Boeing. LAN has a cargo fleet that includes 767 freighters. And UPS (UPS) ? "UPS has never taken a converted 767, but there is no reason why they wouldn't," Rimmer said. At times, Guggenheim leases are to aircraft operators who fly for the overnight cargo companies.

The air cargo market deteriorated substantially in the recession, and it has not returned. "We're not seeing the overall and general cargo market recovering," Rimmer said. "We've even got a concern as to, when it does start recovering, whether it will come back in the same way as it has in years gone by. But I do think there are pockets which are changing and where the dynamics are changing."

Boeing expects the cargo market to pick up over the next few years, said Sailing, who acknowledged that for the moment, the cargo aircraft market may be oversupplied. He called Guggenheim's order "a vote of confidence by an important customer that feels (it) can place these airplanes."

-- Written by Ted Reed in Charlotte, N.C.

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