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Picture

FedEx’s Passenger Dreams: Combi 737-200s

20/10/2020

5 Comments

 
Picture
​It is always a surprise when information pertaining to an airline / aircraft combination is hard to find, especially when that combination features a common aircraft and a major air carrier. Nonetheless some stories seem to be all but lost despite the internet. The story of Federal Express is a well known one, but it is much less well known that the cargo carrier briefly operated a small fleet of Boeing 737-200s in its formative years.
Picture
Federal Express Boeing 737-2S2C N204FE Aeroclassics 1:400 Scale Model


​I have several articles featuring the history of FedEx in my aviation library from Airliners, Airliner World and Airplane magazine but only one of these mentions Federal Express' dalliance with the Baby Boeing. Similarly, although the careers of the frames in questions are documented there is little information concerning the reason why FedEx purchased or acquired them.
35mm slide image
​Frederick W. Smith’s Federal Express took to the air in April 1973 using a fleet of Dassault Falcon 20s but even though after a difficult first few years the cargo concept had proved itself profitable by 1976 it was the deregulation of the air carrier cargo market in 1977 that really gave Federal Express the chance it needed. The passing of the Public-Law 95-165 allowed the usage of larger aircraft with no geographic restriction on their usage.
Picture
Ken Fielding/https://www.flickr.com/photos/kenfielding / CC BY-SA (https://creativecommons.org/licenses/by-sa/3.0)
​This deregulation was of course something that Smith and Federal Express had been lobbying for. By 1975 the business model was proving a success and the little airline applied to the CAB for an exemption for it to operate five Douglas DC-9-15s. Although the application had the support of the Department of Commerce, Justice and Transportation it was unsurprisingly not welcomed by existing cargo airlines and no less then 16 certified cargo carriers opposed it. 
Picture
N102FE was one of the first 727-22Fs. Aero Icarus from Zürich, Switzerland / CC BY-SA (https://creativecommons.org/licenses/by-sa/2.0)
This led to the inevitable failure of the application in December 1975. Nonetheless, the hole in the dyke could not be plugged and the continuing pressure from Federal Express was key in the eventual deregulation of the cargo scene, a year earlier than deregulation of the passenger market.
Picture
JetPix [GFDL 1.2 (http://www.gnu.org/licenses/old-licenses/fdl-1.2.html) or GFDL 1.2 (http://www.gnu.org/licenses/old-licenses/fdl-1.2.html)]
​Federal Express seized the opportunity and began to pickup second-hand Boeing 727-22s from United Airlines. Initially seven were bought with an option on another six. Nine arrived in 1978 registered from N101FE to N109FE. The 727s could carry five times the freight of the Falcons. Further deliveries continued into 1979 with three more 727-22s added plus a pair of 727-116s originally delivered to Lan Chile. The first 727 service was between the Memphis hub and Los Angeles on January 30, 1978. Gradually the 727s replaced the Falcon 20s on core routes to San Francisco, Newark, Boston, Chicago, Minneapolis, La Guardia and Baltimore all within 1978.


Picture
N118FE was one of the ex-Eastern 727-25Fs. Pedro Aragão / CC BY-SA 3.0 GFDL
​The 727s proved ideal and deliveries continued into 1980. These were the first of 20 ex-Eastern Air Lines Boeing 727-25s. By this time Federal Express was growing at a massive rate (c.40% a year) and had the cash to buy new and not just second-hand aircraft. It is here that its association with the 737-200 came into the picture as in October 1978 it ordered four new Boeing 737-200 Combis with options on a further four.
Picture
Image by Gary Vincent from Airliners.net
​It is interesting that the 737-200s were Combis and not pure Freighters. Federal Express was interested in the concept of using the aircraft not just for freight operations but also for passenger services during the day, flying out of Chicago Midway. Certainly, the aircraft kept a full complement of passenger windows. It seems likely that with deregulation of the air passenger market Fedex saw an opportunity to get maximum usage out of the new 737s but for whatever reason the services were never begun.
​Possibly the bloodbath deregulation created and the early 80s economic downturn were enough to dissuade Federal Express from starting up in the highly competitive and unfamiliar passenger side of the aviation business? The early arrival of Midway Airlines may also have been a factor.
Picture
​The first 737-2S2C arrived as N201FE on August 29, 1979. For some reason N202FE was skipped and N203-N205FE joined by mid-October. A fifth aircraft was added on lease from ILFC as N206FE and was accordingly a 737-2Q8C. With the proposed passenger services a no-go the 737s were something of an oddball in the fleet, which was accruing 727s at an impressive rate. 
Chicago Midway Airport - Federal Express (FedEx) - 737
​The 737s remained in service for only fifteen months or so and were withdrawn from January to March 1981. There are few pictures of the aircraft in FedEx colours. By this time Federal Express was thinking big and had begun to acquire widebodies in the shape of four ex-Continental Airlines McDonnell Douglas DC-10s. The leased ILFC 737 went to Alaska Airlines in January. One of the 737s saw a lease to the charter airline Sun Land Airlines from May to August but then was sold on, along with two others to the Saudi oil company ARAMCO between October and December. The other aircraft joined Lan Chile as CC-CHU in March.
Picture
N68049 was one of the first four FedEx DC-10s. Pedro Aragão / CC BY-SA 3.0 GFDL
​Federal Express was none the worse for wear due to its dalliance with the 737-200. It upsized to new Boeing 727-200Fs, of which it ordered 15 new from Boeing for delivery in 1983 and 1984 – the last 727s off the line. No further 737s have ever joined the core Federal Express fleet although several 737-400s and a single 737-800 have been operated in FedEx colours by affiliated airlines in Europe since 2018. 
​References
Airplane Part 125. Federal Express. Orbis Publishing
2004. First Fedex 737? Airliners.net
Vincent, Gary. N204FE Photo. Airliners.net
5 Comments
Dave Bridges
20/10/2020 10:11:42 pm

Excellent article Richard. I hired in with Federal Express in 1979, and I have very fond memories of the 737-200's as they were the first aircraft I worked on the ramp. Very well written and well covered, and spot on. We also had a few of the ex Eastern 727-25C's (I know N133FE was one of them) that were delivered with the windows intact and the titles under the windows, just like the 737's. I'm assuming that these were also intended for possible passenger service. We never did get the exact reason for not starting the passenger service. In hindsight, it's probably a good thing it was never further pursued, as we were growing at an astronomical rate, and really needed the lift for freight. The 737's served us well, although they only held 5 main deck containers. It was deemed uneconomical to have such a small fleet (only 5) so as we got more 727's, the 737's were sold off.

Reply
Butch
21/10/2020 12:46:02 am

FWIW the Eastern aircraft were 727-25Cs. There was no such animal as a 727-100F

Reply
Dave Bridges
21/10/2020 12:33:52 pm

I just wanted to add a few more details on the fleet in general. On the 727s that were acquired from LAN Chile, N114FE was a 727-24C, originally delivered to Continental, and N115FE was a 727-116C originally delivered to LAN Chile.
The beginning of the end for the 737s came in January 1981, when N206FE went to Alaska Airlines re-registered N741AS. N203FE left the fleet in March 1981, going to LAN Chile asCC-CHU. N201FE was leased to Sun Land Airlines in March 1981 and was actually put into passenger configuration, and then sold to ARAMCO on 10/13/1981 as N720A the end came in December 1981 when N204FE and N205FE were sold to ARAMCO. N204FE became N715A and N205FE became N716A. Again, thank you for a great article. It brought back a lot of memories for me.

Reply
Dave
21/10/2020 12:43:19 pm

Guess I could've left off the details on the 737 fleet disposition, as you have it well covered in the article. Hopefully you'll find the info on the ex LAN Chile 727's useful. Just wanted to thank you for all of your great work in general. I enjoy your mould reviews and all of your work on Yesterdays Airlines.

Reply
Dave
21/10/2020 02:37:34 pm

One more thing I wanted to add, N202FE wasn't used because it was reserved by Brasota Aviation in Bradenton, FL on an Aero Commander 560 from 1955 until they let that registration number expire in 2013. It it now reserved by FedEx. It could potentially finally appear on a FedEx aircraft in the future. This is the same reason N202FE was skipped on the 727-200s




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