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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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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.


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.

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