PARIS (Reuters) - Boeing (>> Boeing Company (The)) will convert three second-hand 767 passenger planes to freighters on behalf of package delivery company United Parcel Service (>> United Parcel Service), the companies said on Monday.
It is the first time UPS has converted 767 jetliners into freighters, rather than buying them as freighters directly off the production line, and it selected Boeing after a competition against other conversion providers.
The deal, signed at the Paris Airshow, is also one of the first transactions by Boeing's new global services division which aims to deepen Boeing's involvement in the profitable market for parts and repairs after a jet is sold.
The new division officially starts work on July 1. Boeing aims to increase its annual services revenue to $50 billion in 10 years from about $15 billion currently.
(Reporting by Tim Hepher; Editing by Sudip Kar-Gupta)