Airbus A380 Freighter's future hinges on UPS decision

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David747
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Joined: 11 May 2006, 00:00
Location: Teterboro KTEB, USA

Post by David747 »

RC20 wrote:
David747 wrote:People should remember that FedEx has not ruled out re-ordering the A380 in the future.
Lets see, FedEx cancelled both the firm orders and the options.

They committed to 15 777s, and picked up options for 15 more.

They cancelled the order to two A380 simulators.

I suppose you could make this statement as well.

"FedEx has not ruled out taking packages to the moon". or

"FedEx has not ruled out buying Delta Air" .
Yes, they have cancelled their simulators, etc, but it has not ruled out the possibility of ordering the A380F in the future, I know that bothers you, but the fact they in the future, whether this plane enters service, the A380F will most likely again be part of the FedEx future expansion fleet. Now, as to taking packages to the moon, and buying Delta, I have no idea what that has to do with anything. Please focus on the topic at hand it isn't hard.

On the other hand you can make some informed judgments, that FedEx is NEVER going to fly the A380.


Make informed judgment? A dislike for Airbus and the A380 is not an informed judgment. If you think that FedEx would never order a large freighter to expand their hub to hub operations, you are smoking something I want.
And I can say from some perspective that having watched Fred Smith, when he says something is final, he means it.
In business nothing is final, my god, I hope you never run a company, it would be right into Chapter 7 Liquidation!
What FedEx might buy (and I only say might, as they have no fondness for the 747s) is that they might, buy the 748-8F. It would give them a bigger capacity (the 777 is a direct replacement for MD11s capacity wise, though obviously a whole lot more economical). They also do some charter/lease of 747s when they need extra lift.
Yeah, FedEx might buy the 747-8 which is why they ignored the plane that would have been available in 2009 a few years before the A380F. That tells you how confident FedEx feels about the 747-8F as you do, oh yeah, they didn't order the plane. :D
The can structure doesn't fit well, but if they can make it work for the charters, they may be able to live with it full time. Again I say may, simply based on the these figures.
Plane was available, why didn't they order?
An A380 carries twice what a 777 can. There were a total of 20 possible A380s ordered. That equals to forty 777s. They have a total of 30 possible ordered. That leaves them 10 short.
And if the A380F comes into the market with UPS, and achieves the economics potential that Airbus has claimed, the need to order 777's will not be there for FedEx, but to pick up A380F, because of its load capacity, it is an ideal plane for their hub to hub operations.
If slots get constrained, then a 747-8F is the only candidate, and it looks like they are ok for a time, so it would be a long term decision. Likely after they got the 777s all on line, and then maybe.
747-8F was available, yet they didn't go for it. Go figure.

smokejumper
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Post by smokejumper »

I do not pretend to know Fed Ex's plans, but I'd guess that ordering the A380F is a long shot after canceling their existing orders and options. As a lead customer, they got VERY favorable pricing. If the A380 is a success, prices will be much higher and the return (for Fed Ex) lower.

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PYX
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Joined: 23 Nov 2005, 00:00

Post by PYX »

David747 wrote: In business nothing is final, my god, I hope you never run a company, it would be right into Chapter 7 Liquidation!
It is a long, long way from the Ivory Tower to the realities of the business world.

(Ivory Tower = college library)

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