Fed Ex cancels 380
Longtimelurker
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FedEx Express to Acquire Boeing 777 Freighters
MEMPHIS, Tenn., Nov 07, 2006 (BUSINESS WIRE) -- FedEx Express, a unit of FedEx Corp. (FDX), announced today an agreement with The Boeing Company (BA) to acquire 15 new Boeing 777 Freighter aircraft with options to purchase an additional 15 aircraft. The decision to purchase the 777F was made after Airbus announced significant delays in delivery of the A380. FedEx Express notified Airbus that it has cancelled its order for 10 A380-800Fs.
FedEx Express continues to be Airbus' largest wide-body airplane customer and will add additional new and used Airbus wide-body aircraft to its fleet in coming years. Six new A300-600 aircraft are scheduled to join the FedEx fleet in 2007.
The Boeing 777 Freighter is the world's largest twin-engine cargo aircraft with a range of more than 6,100 nautical miles and a revenue payload capacity of 171,000 pounds. This represents a 2,200 nautical mile increase in range and an additional 8,500 pounds of revenue payload over the MD-11F, which is FedEx's primary long-haul aircraft. These advantages will result in more non-stop, point-to-point transoceanic routes with shorter flight times, enabling improved service offerings to FedEx customers. FedEx Express is expected to take delivery of four of the 777 aircraft in calendar year 2009, eight in 2010 and the remaining three in 2011.
"The Boeing 777F will allow FedEx Express to fly directly between major markets and hubs in Asia, Europe and the U.S. with more freight and in less time than it takes today, improving fuel efficiency and lowering total operating costs," said David J. Bronczek, president and chief executive officer, FedEx Express.
FedEx Express continues to be Airbus' largest wide-body airplane customer and will add additional new and used Airbus wide-body aircraft to its fleet in coming years. Six new A300-600 aircraft are scheduled to join the FedEx fleet in 2007.
The Boeing 777 Freighter is the world's largest twin-engine cargo aircraft with a range of more than 6,100 nautical miles and a revenue payload capacity of 171,000 pounds. This represents a 2,200 nautical mile increase in range and an additional 8,500 pounds of revenue payload over the MD-11F, which is FedEx's primary long-haul aircraft. These advantages will result in more non-stop, point-to-point transoceanic routes with shorter flight times, enabling improved service offerings to FedEx customers. FedEx Express is expected to take delivery of four of the 777 aircraft in calendar year 2009, eight in 2010 and the remaining three in 2011.
"The Boeing 777F will allow FedEx Express to fly directly between major markets and hubs in Asia, Europe and the U.S. with more freight and in less time than it takes today, improving fuel efficiency and lowering total operating costs," said David J. Bronczek, president and chief executive officer, FedEx Express.
Union Goon
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Wow, That has to sting since they were the main driver in designing the cargo version.
Interesting to see what happens with UPS since they usually just parrot FEDEX. (and wound up hating their A300's and cutting that order off early)
Cheers
Wino
Interesting to see what happens with UPS since they usually just parrot FEDEX. (and wound up hating their A300's and cutting that order off early)
Cheers
Wino
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Fedex - A380 - Anc
Having spent millions of dollars widening taxiways etc to take the A380 - Fedex is one of its largest customers - the Anchorage authorities will NOT be happy !!!! 
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http://edition.cnn.com/2006/BUSINESS....ap/index.html
http://news.bbc.co.uk/1/hi/business/6126206.stm
http://news.bbc.co.uk/1/hi/business/6126206.stm
Last edited by G-CPTN; 7th Nov 2006 at 17:03.
Fedex A380
Interesting that they went for the 777 and not the 747-8 which would presumably be closer to the A380.
This is very bad for Airbus and I suspect more cancellations to come.
20driver
This is very bad for Airbus and I suspect more cancellations to come.
20driver
Just when we thought things were improving.
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FedEx and UPS both operate the MD11, A300, B727. In addition, FedEx operates the MD10 and A310, while UPS operates the B747, B767, B757 and DC8. Both had ordered the A380 and FedEx just announced that they were purchasing the B757. I wouldn't say either "parrots" the other.
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Shocking news. 
Particularly since the A380 promises to be the world's largest civilian freighter in terms of both volume and weight and also consider the penalties Airbus would need to pay Fed Ex with this latest round of delays.
How could they possibly pass on this? Does Fed Ex know something we do not know about the super jumbo beyond the 'wiring' issues?
Particularly since the A380 promises to be the world's largest civilian freighter in terms of both volume and weight and also consider the penalties Airbus would need to pay Fed Ex with this latest round of delays.
How could they possibly pass on this? Does Fed Ex know something we do not know about the super jumbo beyond the 'wiring' issues?
A380 -
I missed the following quote:
This is exactly what Boeing has being claiming for the passenger market. Packages represent the ultimate hub and spoke and here is the worlds biggest package hauler saying it is cheaper to go point to point.
I don't have a dog in this fight but this is really a kick in the shorts to Airbus. I wonder if you can short sell A380 slots?
20driver
"The Boeing 777F will allow FedEx Express to fly directly between major markets and hubs in Asia, Europe and the U.S. with more freight and in less time than it takes today, improving fuel efficiency and lowering total operating costs," said David J. Bronczek, president and chief executive officer, FedEx Express."
I don't have a dog in this fight but this is really a kick in the shorts to Airbus. I wonder if you can short sell A380 slots?
20driver
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I work for Fred and know several people involved in this program, including two guys who have been over to France and flown the thing.
Believe me, they wanted this to work. I still think we'll buy some, after the bugs are worked out. The Board probably wouldn't let FS sign for some 777's until he got out of the A380 deal....
Believe me, they wanted this to work. I still think we'll buy some, after the bugs are worked out. The Board probably wouldn't let FS sign for some 777's until he got out of the A380 deal....
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Well, it's not a total disaster as Qantas just ordered 8:
http://www.qantas.com.au/regions/dyn...006/oct06/3498
http://www.qantas.com.au/regions/dyn...006/oct06/3498
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If you read through the September ORDERS-DELIVERIES-OPERATORS WORLDWIDE list on Airbuses website, 25 A380F's are listed: 10 each for FedEx & UPS, plus 5 for IFLC (plus 5 more passenger versions). Going to the individual airline orders section, it shows no A380 orders for FedEx & UPS, and only 5 for IFLC (passenger version I assume). Is there a reason why Airbus would not show individual A380F orders when they do show A300/310 orders to these same airlines? Is the freighter program cancelled? I know FedEx cancelled, but what about the UPS and ILFC orders?
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You sound surprised. From my personal point of view (and many of the guys on our team) it's seemed the freighter's looked for ages like a dead plane walking. Emirates was clearly unhappy with it, but saved Airbus' face when it dumped the freighter by chalking up a couple more pax versions.
Timing for Fed Ex is everything - their slogan says it all "The World on Time"
Evertonian
Perhaps the "deal" that QF did was as a result of FedEx cancelling? A couple of empty slots, cheaper than list price and...Bobs yer Uncle!
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I doubt it. If i were airbus and suddenly i have 10 cancellations i would bring forward the other orders that are already delayed rather than give those free slots to new orders. This would cut down on the fines airbus have to pay on delayed deliveries. Just my opinion.
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FedEx' decision is probably down to simply capacity. The freight market is booming and despite the A380F probably being a very good product (once the bugs are ironed out) a two year delay is probably just not something FedEx can tolerate. It needs capacity and the 777 is available in the required time frame.