Switches To Boeing 777 Freighters

Well, we knew it was coming... but it's from a somewhat unexpected source. On Tuesday, international parcel carrier FedEx announced it is cancelling its orders for 10 freighter variants of the oft-delayed Airbus A380. That's the first cancellation after Airbus announced in September deliveries of the mammoth airliner would be delayed an additional 11 months.

FedEx also announced it has ordered 15 Boeing 777-200 Freighters, with options for 15 more, to replace the A380-800Fs.

"Global demand for air cargo and express services continues to grow rapidly and FedEx has made significant investments in our network to meet customers’ needs and fulfill our business objectives. Therefore, it was necessary and prudent for us to acquire the Boeing 777 Freighter," said Frederick W. Smith, chairman, president and chief executive officer, FedEx Corp. "The availability and delivery timing of this aircraft, coupled with its attractive payload range and economics, make this choice the best decision for FedEx, its customers, shareowners and employees."

As Aero-News reported, FedEx ordered 10 A380Fs, with options for 10 more, at the 2002 Farnborough Air Show.

Airbus spokesperson Barbara Kracht said the company regrets FedEx's decision, "but we understand their need to urgently address their capacity growth."

FedEx Express continues to be Airbus' largest widebody airplane customer, and will add additional new and used Airbus widebody aircraft to its fleet in coming years. Six new A300-600 aircraft are scheduled to join the FedEx fleet in 2007.

The cancellation of FedEx's orders puts the entire A380 Freighter program in a questionable position -- as there remains only two other customers for the cargo-hauling variant of the superjumbo. FedEx competitor United Parcel Service (UPS) has 10 aircraft on order, while International Lease Finance Corp (ILFC) has orders for five of the cargo planes on the books.

UPS is rumored to also be considering abandoning the A380F program; if that happens, it's likely the entire A380F program would collapse. While that would undoubtably be a significant blow to an already troubled program, it would also allow Airbus to deliver passenger-carrying A380s to expectant airline customers that much sooner -- as those planes would fill delivery slots originally slated for A380Fs.

Boeing 777

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.

The first Boeing 777-200 Freighter is slated to for delivery to Air France Cargo in 2008.

FMI: www.fedex.com, www.airbus.com, www.boeing.com