FedEx Express, an operating company within FedEx Corp., has ended speculation as to the what aircraft it will use to replace some 35 FokkerF-27 freighters. It recently bought eight ATR 42-320s from Continental as an initial order, with more orders expected.

The express package carrier had initially indicated it would buy 75 Ayres Loadmasters, then cancelled that commitment. Speculation then centered on whether FedEx would go with the Continental ATR 42s or the Saab 340s that American Eagle was planning to retire.

Ed Coleman, a FedEx Express spokesman, told C/R News that it will start retiring the F-27s this year, to be replaced by the ATR 42s as they come out of conversion. The company has not yet selected a conversion company, although the majority of ATR conversions are done by Venice, Italy-based Aeronavali, a division of Alenia Aerospazio.

Although FedEx Express has 35 F27s, it will not necessarily be getting rid of all 35 in the near term, Coleman said. "We have some of the last F-27s produced, so those are not at their replacement point yet," he said. Additional ATR 42s will be purchased based on the future fleet requirement and progress of the F-27 fleet retirement program.

Once introduced into the FedEx fleet, the freighter ATRs will be used on short routes that are in geographic areas where surface transportation is not expedient enough to provide the service level desired, Coleman said. "These would be routes such as Seattle, Wash. to Ketchikan, Alaska, or Memphis, Tenn. to Columbus, Ga.," he added.

The ATR 42 is powered by twin Pratt & Whitney PW-121 turboprop engines, providing a maximum payload of more than 12,000 pounds.

Mark Blair, vice president of supplemental air operations for FedEx Express, said that with its environmentally friendly Stage 3 noise certification, "the ATR 2 is expected to meet operational requirements of the FedEx Express feeder network in the coming decade. Since being introduced in 1985, it has proven to have the lowest operating costs of any aircraft in its category."

Continental has 30 ATR-42s that it is planning to retire. Although FedEx purchased only eight aircraft in the initial batch, this could increase the value of the aircraft at a time when turboprop values are generally dropping (C/R News, Jan. 20, 2003).

ATR had an exceptionally strong year for used aircraft in 2002, with a total of 53 aircraft sales, of which 45 were ATR 42 and eight were 72s. The company said that it has budgeted to sell an equal number of used ATRs in 2003, as well as 20 new ATRs. It reported 16 new orders last year, including two ATR 42-500s and 14 ATR 72-500s, and it delivered five ATR 42-500s and 14 ATR 72-500s.

(Contact: ATR, John Moore, 703-736-4200, e-mail: jmoore@atrsupport.com; FedEx, Ed Coleman, 901-434-7784, e-mail: eacoleman@fedex.com)