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Boeing, UPS deal to fly?
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October 13, 2000: 6:20 a.m. ET
Maker of jetliners discussing $1.5B freighter deal, newspaper says
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NEW YORK (CNNfn) - Boeing Co. has agreed to convert 30 used jumbo jets into freighters for United Parcel Service Inc. in a deal worth up to $1.5 billion, the Wall Street Journal reported Friday.
Citing industry officials who were not identified, the newspaper said the agreement calls for the world's largest maker of commercial aircraft to convert a fleet of MD-11 passenger planes into cargo jets, with deliveries taking place over the next five or six years.
 Boeing and Atlanta-based UPS are discussing the possible conversion of some 747passenger models as well, the Journal noted.
Boeing and UPS are also said to be negotiating service contract provisions including fleet management and engine maintenance services, the paper said.
Seattle-based Boeing (BA: Research, Estimates), which makes airliners and space and defense systems, has been moving into aircraft services in recent years in a bid to boost growth. The deal with UPS would be an important step in that direction, industry analysts told the newspaper. A spokeswoman for Boeing declined to comment, the report said.
Last year, Boeing signed a $2 billion agreement with DHL Worldwide Express to buy 40 used 757 passenger jets, convert them into package freighters and sell and lease them back to DHL, the paper noted.
Boeing stock fell $4.06 to $56.13 Thursday while UPS (UPS: Research, Estimates) lost $2.75 to $54.75. 
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