Post by flyjoe180 on Nov 8, 2006 9:29:11 GMT 12
Another Airbus 380 disaster; this time it's a freight company:
FedEx Express, a unit of FedEx Corp., said on Tuesday it would buy 15 Boeing Co. 777 Freighter aircraft and cancelled its order for 10 Airbus A380-800F aircraft due to delays in delivery.
FedEx said its agreement with Boeing also gives it options to purchase an additional 15 aircraft. It expects to take delivery of four of the 777 aircraft in 2009, eight in 2010 and the remainder in 2011. At a list price of US$232.5 million to US$240 million, the order will be worth at least US$3.48 billion.
The cancellation of orders - worth more than US$2.5 billion - is another blow to Airbus and its parent, EADS. The company has been dealing with production problems and costly delays with its A380 superjumbo, which has plunged the aircraft maker into crisis and forced it to re-examine projects and restructure its business.
The cancelled agreement also included an option for another 10 aircraft, a FedEx spokesman said.
FedEx's decision cuts the number of outstanding orders for the A380 freighter to 15.
Morningstar analyst Chris Lozier said the order speaks well of Boeing's competitive position against Airbus.
"It's definitely a good sign - both the order and the cancellation," Lozier said. "I'm guessing that certainly they have those slots promised and they should have no problem making those deliveries."
EADS shares closed down 3.1 percent on the Paris stock market, while Boeing was up around 4 percent in afternoon trading on the New York Stock Exchange. The Standard & Poor's Aerospace and Defence index was up 1.7 percent.
"The decision to purchase Boeing 777s was taken after Airbus announced significant delays for delivery of A380s," said Maury Lane, a spokesman at FedEx Express, the express package delivery unit of FedEx. "Global package demand continues to grow and we need the appropriate aircraft to meet that demand."
FedEx, the Memphis, Tennessee-based package delivery company, said it continues to be Airbus' largest wide-body airplane customer and will add new and used Airbus wide-body aircraft to its fleet in the coming years.
An Airbus spokesman said the company "regrets FedEx's decision, but we understand their need to urgently address capacity issues."
The spokesman added that Airbus remained committed to the freighter program.
"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."
A Boeing spokesman said the company is prepared to meet FedEx's delivery schedule.
"We are very pleased to meet the needs of such an important customer," spokesman Jim Proulx said.
The Boeing 777 Freighter, launched in May 2005, is the world's largest twin-engine cargo aircraft.
FedEx shares were up 96 cents, 0.84 percent, at US$114.90, in afternoon trading, while Boeing was up US$3.13 at US$83.61 both on the New York Stock Exchange.
FedEx Express, a unit of FedEx Corp., said on Tuesday it would buy 15 Boeing Co. 777 Freighter aircraft and cancelled its order for 10 Airbus A380-800F aircraft due to delays in delivery.
FedEx said its agreement with Boeing also gives it options to purchase an additional 15 aircraft. It expects to take delivery of four of the 777 aircraft in 2009, eight in 2010 and the remainder in 2011. At a list price of US$232.5 million to US$240 million, the order will be worth at least US$3.48 billion.
The cancellation of orders - worth more than US$2.5 billion - is another blow to Airbus and its parent, EADS. The company has been dealing with production problems and costly delays with its A380 superjumbo, which has plunged the aircraft maker into crisis and forced it to re-examine projects and restructure its business.
The cancelled agreement also included an option for another 10 aircraft, a FedEx spokesman said.
FedEx's decision cuts the number of outstanding orders for the A380 freighter to 15.
Morningstar analyst Chris Lozier said the order speaks well of Boeing's competitive position against Airbus.
"It's definitely a good sign - both the order and the cancellation," Lozier said. "I'm guessing that certainly they have those slots promised and they should have no problem making those deliveries."
EADS shares closed down 3.1 percent on the Paris stock market, while Boeing was up around 4 percent in afternoon trading on the New York Stock Exchange. The Standard & Poor's Aerospace and Defence index was up 1.7 percent.
"The decision to purchase Boeing 777s was taken after Airbus announced significant delays for delivery of A380s," said Maury Lane, a spokesman at FedEx Express, the express package delivery unit of FedEx. "Global package demand continues to grow and we need the appropriate aircraft to meet that demand."
FedEx, the Memphis, Tennessee-based package delivery company, said it continues to be Airbus' largest wide-body airplane customer and will add new and used Airbus wide-body aircraft to its fleet in the coming years.
An Airbus spokesman said the company "regrets FedEx's decision, but we understand their need to urgently address capacity issues."
The spokesman added that Airbus remained committed to the freighter program.
"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."
A Boeing spokesman said the company is prepared to meet FedEx's delivery schedule.
"We are very pleased to meet the needs of such an important customer," spokesman Jim Proulx said.
The Boeing 777 Freighter, launched in May 2005, is the world's largest twin-engine cargo aircraft.
FedEx shares were up 96 cents, 0.84 percent, at US$114.90, in afternoon trading, while Boeing was up US$3.13 at US$83.61 both on the New York Stock Exchange.
