Print 47 comment(s) - last by Clauzii.. on Nov 11 at 7:25 PM

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 11/7/2006 6:57:04 PM , Rating: 0
"FedEx's decision cuts the number of outstanding orders for the A380 freighter to 15 from 25."

So they are not quiting A380 totally! They only cancelled the option to buy 25 instead of 15.

Big difference I think.

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.

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
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
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.


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
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!

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

"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs
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