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Thu, Jul 18, 2002

FedEx: Absolutely, Positively the Biggest Airplanes

Ten A380s On Order With Airbus, as Farnborough Frenzy Starts Early

FedEx has joined IFLC as the second American firm to sign up for the A380 supermegajumbogiant, coming from Airbus in the latter half of this decade.

A Reuters report says that FedEx has signed up for ten of the giant freighters, and is holding options for ten more, with deliveries running from 2008 through 2011.

The A380-800F will be, when delivered, the largest, heaviest, longest-range airplane alive; and FedEx, evidently having checked to make sure Memphis, its hub, will be ready for the new plane's sheer size, as well as weight, thinks it can fill these monsters up, every night.

A year and a half ago, Airbus was saying it really needed 120 or so orders, to launch the A380, about 10% of its (then) recently-downwardly-revised breakeven. These ten, ordered from FedEx, bring Airbus's order book up to 95. Add the current air-industry climate, and analysts are guessing that FedEx got a very good cut from list price. Putting all that together, it's hard to know just who is more pleased with the current A380 situation -- Airbus... or Boeing.

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

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