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FedEx kicks the Airbus A380 to the curb
Airbus loses 10 orders for the A380 worth $2.5 billion USD

After some pretty hefty setbacks with its A380 superjumbo program, Airbus was dealt another blow today by FedEx with the announcement that the shipping company would cancel its orders for the A380-800F. FedEx has originally signed on to purchase 10 of the superjumbos, but will now instead purchase 15 Boeing 777s.

"The decision to purchase Boeing 777s was taken after Airbus announced significant delays for delivery of A380s. Global package demand continues to grow and we need the appropriate aircraft to meet that demand," said Maury Lane, a spokesman at FedEx Express.

FedEx's first batch of four 777s will arrive in 2009 with eight more coming in 2010. FedEx will take delivery of the remaining aircraft in 2011 and has taken options to purchase at least 15 more planes. "We are very pleased to meet the needs of such an important customer," said a spokesman for Boeing.

Airbus announced back in September that it was delaying its A380 due to problems with the plane's wiring layout. In early October, Airbus announced that the A380 would be delayed by at least a year.

When asked to comment on the FedEx announcement, an Airbus spokesman remarked that the company "regrets FedEx's decision, but we understand their need to urgently address capacity issues." The spokesman went on to say "We still expect the A380 freighter to be a successful program from the outset, although we did not expect demand to be very high at the start."



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The whole story :)
By Clauzii on 11/7/06, Rating: 0
RE: The whole story :)
By montgom on 11/7/2006 7:17:34 PM , Rating: 5
FedEx ordered 15 Boeing 777, (not 747 or 737). And took options to purchase 15 more.

From the Reuters article "The previous agreement with Airbus included an option for another 10 A380 planes, a FedEx spokesman said, but those options are now invalid."

The way I read this is FedEx has canceled "ALL" orders for all A380s. They have gone entirely with the 777.
Bob


RE: The whole story :)
By Clauzii on 11/7/06, Rating: 0
RE: The whole story :)
By blueflash2o on 11/8/2006 9:38:21 AM , Rating: 2
quote:
With the cancellation of the option for further 10 A380, FedEx still gets 15.

FedEx isn't getting any. There are 15 total A380 freighter planes being made and 10 are going to UPS


RE: The whole story :)
By vanka on 11/7/2006 7:45:25 PM , Rating: 4
quote:
So they are not quiting A380 totally! They only cancelled the option to buy 25 instead of 15.


Please re-read the article. What this means is that Airbus had 25 orders to fill for its A380 freighter total . When FedEx canceled its order, Airbus has a total of 15 orders left. FedEx is quiting Airbus, for now anyway; who knows what the future holds.


RE: The whole story :)
By Clauzii on 11/7/06, Rating: 0
RE: The whole story :)
By timmiser on 11/7/2006 9:29:08 PM , Rating: 3
Your first impression was right, FedEx will not get any A380's at all.



RE: The whole story :)
By Clauzii on 11/7/06, Rating: -1
RE: The whole story :)
By Clauzii on 11/7/2006 9:54:23 PM , Rating: 2
Forget my last post - You're frikkin' right about the 380s :O

Well, at least FedEx ARE still an Airbus customer regarding wide bodied planes.


RE: The whole story :)
By timmiser on 11/7/2006 9:26:14 PM , Rating: 4
No, I think you misunderstood.

Airbus has a total of 25 firm orders for the A380 Freighter from all airlines (not to be confused with orders of the A380 Passenger Jet).

10 of those 25 firm orders were from FedEx. Airbus breached their purchase contract with FedEx and all other A380 customers by not delivering the finished airplanes on schedule per their purchase contract so FedEx and possibly other carriers are free to walk away from their purchase commitments with Airbus.

Of the 25 A380 orders, 10 were from Fedex and 10 are from UPS and 5 from other cargo airlines which totals up to 25 not counting any options.

If UPS decides to cancel their orders too, the A380 freighter program will be in serious trouble and may face cancellation.

-Tim


RE: The whole story :)
By Clauzii on 11/7/2006 10:01:14 PM , Rating: 3
Just checked on Airbus site - I was wrong - NO A380 for FedEx at ALL....

Sorry guys, for my wrong interpretation. Buisness news are Goofy written...


RE: The whole story :)
By dever on 11/8/2006 2:13:10 PM , Rating: 2
quote:
Buisness news are Goofy written

Some things are "Goofy written", but it wasn't the business news.


RE: The whole story :)
By Clauzii on 11/7/2006 10:11:27 PM , Rating: 3
In the order selector for A380, Federal Express it really says: A380 .... None!

http://www.airbus.com/en/corporate/orders_and_deli...

I say sorry for my mistake. I really thought I got it right...


Why not build the cargo's first?
By slarry on 11/7/2006 6:51:32 PM , Rating: 2
Why doesn't Airbus build the cargo planes first? There would be much less wiring to do and since the planes are an empty shell it would be easy to slap them together compared to the passenger jets.




RE: Why not build the cargo's first?
By Clauzii on 11/7/2006 7:01:25 PM , Rating: 1
I'd agree with You on that, but what about all the passengers then?

Getting to LA by AirBox!


RE: Why not build the cargo's first?
By clayclws on 11/7/2006 7:29:42 PM , Rating: 3
Did u read what he posted?


By Clauzii on 11/7/2006 7:33:10 PM , Rating: 2
Yes :)

But I'll guess that Airbus has some passenger planes to deliver ;)


RE: Why not build the cargo's first?
By OddTSi on 11/7/2006 7:45:46 PM , Rating: 2
Although I've never built an airplane before my guess would be that wiring complexity is mostly due to airplane controls and safety equipment, not for internal lighting and all the other creature comforts needed for passenger flights.


RE: Why not build the cargo's first?
By Griswold on 11/8/2006 4:37:53 AM , Rating: 3
Most of the so called wiring problems are related to the inflight entertainment system, though.


By timmiser on 11/8/2006 5:50:44 PM , Rating: 2
I think you are right. They probably got their little red, white, and yellow RCA jacks, routed them around the HDMI cables powering the HDTV's, then the monster S-video cables and those funky digital audio cables. After it was all done they go to plug it all in and nothing works. Now they have to tear apart the whole God-D**M plane and start over! I guess even aerospace engineers have a hard time figuring out those home entertainment systems! :)


By lemonadesoda on 11/7/2006 9:28:51 PM , Rating: 3
I agree on safety grounds. If there is a "new concept" plane, I'd prefer it to have a million flying hours before crowding people onto the thing. Cargo is a good way to test the plane without putting people at risk (and costing airports a fortune in gate conversion costs)


Right on FedEX!
By Desslok on 11/7/2006 5:31:30 PM , Rating: 2
Airbus is really hurting. It looks like they put all their eggs in one basket. Hopefully Boeing can keep up with the orders. I know their 737 line is going non-stop trying to fill all the orders they have.




RE: Right on FedEX!
By Kurumi on 11/7/2006 7:55:47 PM , Rating: 2
Remember, that's what Boeing did in the late 60's with the 747 and now Boeing is the largest airplane maker in the world.


RE: Right on FedEX!
By timmiser on 11/7/2006 9:37:40 PM , Rating: 2
That is true and Boeing almost did go out of business due to the cost and risk of the 747. But as we know now, the 747 was a huge success. The question now is, can Airbus duplicate that success? I don't think they can because fuel cost is a much bigger issue today and the A380 uses a lot. Also, Boeing believes today that passengers are more interested in flying direct non-stop routes with smaller planes rather than flying the long legs via connections and layovers. What would you rather do? Fly in a triple 7 non-stop from Boston to Melbourne, Australia or fly in a commuter from BOS to JFK, hop on an A380 to Sydney, then hop on a narrow body to Melbourne?


RE: Right on FedEX!
By Desslok on 11/7/2006 9:40:04 PM , Rating: 2
That is true, but if I remember correctly the 747 was not delayed over and over again. Another thing is I don't believe that the 747 was too big for any of the major runways like the "Super Jumbo" is.

I will admit that being born and raised in WA and having friends that work for Boeing I am a little biased.

Chris


RE: Right on FedEX!
By bobsmith1492 on 11/7/2006 9:46:32 PM , Rating: 2
Yeah, they are producing a lot of 737s, and as of now, they're stuck on the assembly line because my company can't spit out enough trim stabalizer actuators to keep their line running since we're having issues with a new motor... not to mention our test panels have been acting up (I just fixed one today after it blew up 4 control boards...)


RE: Right on FedEX!
By FITCamaro on 11/8/2006 7:21:26 AM , Rating: 2
Not really. Airbus is also working on the A400 for the military. Of course that projects severely behind too.


RE: Right on FedEX!
By theapparition on 11/8/2006 8:00:51 AM , Rating: 2
Airbus may actually be relieved by the FedEx cancel in a perverse way. Since they are late, there is a penalty clause in the order contracts. Each month they fail to deliver, they owe the customer money in the form of reduced purchase price. With the current delays, each aircraft delivered is costing them a signifigant amount of money.


A380
By Kip RATTS on 11/7/2006 6:32:43 PM , Rating: 2
I was an Air Traffic Controller when the first Airbus started flying in the USA. Very quickly they were nicknamed SCAREBUS!




RE: A380
By cochy on 11/7/2006 6:40:16 PM , Rating: 2
quote:
I was an Air Traffic Controller when the first Airbus started flying in the USA. Very quickly they were nicknamed SCAREBUS!


Why is that?


RE: A380
By Kip RATTS on 11/7/2006 7:21:55 PM , Rating: 2
Gross under performance! They couldn't climb or turn as well as the competition. Made my life very nerve-wracking.


RE: A380
By Griswold on 11/8/2006 4:44:39 AM , Rating: 1
And what does that have to do with the A380? Or are you implying that the A380 was flying in the US 20some years ago?



RE: A380
By ThisSpaceForRent on 11/8/2006 7:53:09 AM , Rating: 1
My brother's friend is a pilot who has flown Airbus planes, and he said the fly-by-wire system sucks. You go to bank, and then wait for the aircraft to do something. We were joking about what you would have to do in case of an emergency =) Just push the controls to which ever direction you wanted to go, smoke a cigarette, and hope for the best.


RE: A380
By Clauzii on 11/8/2006 11:27:24 PM , Rating: 2
But they can't be THAT scarry, since there are thousands of "scarebus"'s flying around right now.


A320
By Clauzii on 11/7/2006 5:38:45 PM , Rating: 2
Is to Airbus was 737 is to Boing :)




RE: A320
By Clauzii on 11/7/2006 5:39:25 PM , Rating: 1
Sorry, should have been as reply to the first post...


RE: A320
By Clauzii on 11/11/2006 7:25:33 PM , Rating: 2
Who the F... keeps downrating ALL my posts - this is relly annoying. 20-30 posts in one day until now. Even one where I say sorry for something :-/


just buy Boeings an overclock
By mforce on 11/7/2006 6:05:37 PM , Rating: 3
Yeah I agree the A380 is bigger but I'm just going to get some 747s and overclock them a bit. With decent cooling I should be able to cram in all the passengers and it doesn't use that much power err I mean fuel.
I don't know about you but for me the Airbus is just too expensive so I'm getting Boeing.




RE: just buy Boeings an overclock
By Kurumi on 11/7/2006 7:57:00 PM , Rating: 2
The cost per ton of cargo on a 777 is cheaper than a 747, regardless of how much more a 747 can carry vs a 777.


thats right
By fxnick on 11/7/06, Rating: 0
RE: thats right
By silentpc on 11/7/2006 8:24:42 PM , Rating: 2
Why stop there? The Germans, and the UK, and Spain. Fuck them.

Oh - wait - and the US. Some 120,000 American employees working for Airbus suppliers. Fuck them too! Hell yaa.


RE: thats right
By Griswold on 11/8/2006 4:40:18 AM , Rating: 1
Dont try to explain globalization or multi-national companies to the bottom feeders.


RE: thats right
By FITCamaro on 11/8/2006 7:23:39 AM , Rating: 2
I'm one of them. The project I'm on at work is a component of the A400 for Airbus. I'm betting this will be a topic of discussion at work today.


no suprise
By Lazarus Dark on 11/7/06, Rating: 0
RE: no suprise
By Nightskyre on 11/8/2006 9:38:30 AM , Rating: 2
Funny that. I worked for FedEx for five years, and they treated me fantastically. I saw them treat some people poorly. In general, I found this rule to be true - Be an asshat, be treated like an asshat.


RE: no suprise
By glennpratt on 11/8/2006 10:57:28 AM , Rating: 2
My father worked for FedEx when he needed some more money and a good friend of mine works there full time. Never heard any complaints. I usually hear about good benefits, paying some tuition and staying in shape...


woot
By slickr on 11/7/2006 5:51:19 PM , Rating: 1
i'm glad they are doing so bad. You can't really be serious if you are pushing back the development time so much. Hmmm, i gues i'm going to cancel my ordered planes too. I'm going to cancel all 6 planes ordered and buy boeing's instead!




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