(Bloomberg) -- United Parcel Service Inc. purchased its first used Boeing Co. 767s, grabbing older models that are in high demand as package shipments increase globally and production slots for new versions of the plane are sold out.
The three passenger aircraft, 767-300ERs that will be converted to carry freight, were bought “within the past couple of days,” UPS spokesman Jim Mayer said Friday. He declined to identify the seller or the cost and couldn't say when the new planes will begin flights for the Atlanta-based courier. The company has 59 of the model now, all ordered from Boeing in January 1993.
The 767, which debuted in 1982 as Boeing's first twin-engine wide-body, has enjoyed a resurgence as a freighter as the passenger version loses popularity. Boeing plans to speed output by 25 percent later this year as it juggles contracts to build the first of potentially 400 aerial tankers for the U.S. Air Force and 50 freighters for FedEx Corp.
“It's simply a plan for investment in capacity we need for growth,” Mayer said of the 767 purchase. The planes will be deployed “pretty much anywhere we operate.”
The price of used aircraft vary widely depending on age, condition and other factors. Consulting firm Avitas gives the 767-300ER a book value of between $9 million for a 20-year-old plane to $20 million for one that's a decade old.
UPS in October ordered 14 larger Boeing 747 jumbo jets valued at $5.3 billion amid strong package-volume growth in China and Hong Kong. Mayer didn't know if UPS had sought to order new 767s before buying the used ones.
Read more: Boeing bets on the 747 for hauling cargo
Air Transport Services Group Inc. and Atlas Air Worldwide Holdings Inc. have been acquiring used 767s to operate for Amazon.com Inc.'s nascent air-cargo service. Each will operate 20 of the planes for the online retailer.
Cargo Facts reported earlier that UPS purchased a 767 from Japan Airlines Co.
--With assistance from Michael Sasso
To contact the reporters on this story: Mary Schlangenstein in Dallas at maryc.s@bloomberg.net, Julie Johnsson in Chicago at jjohnsson@bloomberg.net.
To contact the editors responsible for this story: Brendan Case at bcase4@bloomberg.net, Tony Robinson
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