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Home Front Economy
FedEx bails on Airbus 380
2006-11-07
FedEx Corp. said Tuesday it has canceled its order for 10 Airbus A380 jets, the new jumbo double-decker plane that has been dogged as it were by numerous delays. The company's FedEx Express unit has ordered 15 Boeing Co. 777 freighters and taken options on an additional 15, FedEx said in a news release. The company cited Airbus' production delays as the reason for the decision. Airbus regrets the decision by FedEx, company spokeswoman Barbara Kracht said, "but we understand their need to urgently address their capacity growth."

FedEx did not immediately return a call for comment. Boeing did a little happy dance and said delivery of its aircraft to FedEx Express will begin in 2009. "We're looking forward to working with FedEx on this new chapter in our relationship," said Ray Conner, vice president of sales for the Americas for Boeing Commercial Airplanes.
Posted by:Seafarious

#12  The boys in Seattle are doing Cheta flips and sending thank you cards to the dorks at EADS.
Posted by: 49 Pan   2006-11-07 19:37  

#11  What's the sound of the A380 project eating up all it's money?

Gobble-gobble-gobble
Posted by: mojo   2006-11-07 16:57  

#10  "Or that they got a very good price from Boeing"

I suppose that it didn't hurt that this came on heels of the announcement two weeks ago that Fedex was going to replace their 727 fleet with 90 757s.
Posted by: tzsenator   2006-11-07 16:20  

#9  Fedex was the launch customer for the freighter version. For them to back out is a signal that the the A380 is in much worse shape than publicly announced.

Or that they got a very good price from Boeing.
Posted by: Nimble Spemble   2006-11-07 16:01  

#8  reading the press release from FedEx, i get the impression that they are still looking for an aircraft with bigger capacity than the triple 7; i still think that the 747 LCF will make it into production for a customer, rather than a strictly Boeing internal asset.
Posted by: USN, ret.   2006-11-07 15:54  

#7  Another nail in the coffin. How soon before their co-Eurabians in the MME (Muslim Middle East) bail out on them too?
Posted by: Zenster   2006-11-07 15:43  

#6  DoDO: perhaps the fact that the a/c is about 6 tons overweight and the entire production schedule is delayed while working the wiring has a lot to do w/ FedEx's decision. I agree, it would seem like the freighter could be slid to the front of the build line to at least get some market exposure while working out the kinks in the wiring (pun intended). But too bad for Airbus!
Posted by: USN, ret.   2006-11-07 14:15  

#5  Ah yes, the glories of the new EU socialism once more displaying themselves for the world to see.


And laugh at.
Posted by: DarthVader   2006-11-07 14:14  

#4  in other A380 news, Airbus today said it was going to dump many suppliers in an effort to cut costs. While that is commendable, it speaks of too little too late and still doesn't address the root cause of delayed schedule. How do fewer suppliers fix the wiring problem, which was the whole thing that started this mess?
Posted by: USN, ret.   2006-11-07 14:12  

#3  Airbus cited as underlying causes [for the A380 delay] the complexity of the cabin wiring, its concurrent design and production, the use of two incompatible versions of the CATIA computer-aided design software, the high degree of customisation for each airline, and failures of configuration management

How does cabin wiring affect the freighter version? It would seem that Airbus could deliver freighters while sorting out the cabin wiring issues for the passenger planes.

Unless there are other issues.
Posted by: DoDo   2006-11-07 14:11  

#2  Fedex was the launch customer for the freighter version. For them to back out is a signal that the the A380 is in much worse shape than publicly announced.
Posted by: tzsenator   2006-11-07 14:00  

#1  I was just going to post this too! Great news for Boeing--more detail here at the Seattle PI.
Posted by: Dar   2006-11-07 13:54  

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