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American Airlines will sell Federal Express 12 of its McDonnell Douglas MD-11 aircraft and give the carrier the option of buying its remaining fleet of seven of the tri-jets. The two airlines also have reached an agreement under which American will provide maintenance to the freight carrier over a six-year period. Financial terms of the deals were not disclosed.
American will phase out the MD-11s, turning them over to FedEx from January 1996 to October 1999 at a rate of three per year. If FedEx purchases the additional seven aircraft, they will enter its fleet between 2000 and 2002. American will kick off its maintenance contract with Fedex by overhauling the carrier's fleet of 727s.
Rumors circulated for months that the jet sale had been completed and needed only board of directors approval. When...