EVERETT – Airbus’ largest customer of widebody aircraft canceled its request for the much-delayed A380 jumbo jet and handed the Boeing Co. an order for Everett-built 777s instead.
Tuesday’s order, a major boost for Boeing from FedEx Express, was for 15 777 Freighters with options for an additional 15. At list prices, it was a $3.5 billion deal, but buyers typically get discounts.
The Memphis, Tenn.-based carrier decided to go with Boeing after rival Airbus announced the third delay on its A380 superjumbo jet last month. FedEx Express, a unit of FedEx Corp., canceled 10 A380-800 freighters.
“It was necessary and prudent for us to acquire the Boeing 777 Freighter,” said Frederick Smith, chairman, president and chief executive officer of 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.”
FedEx is the first customer to cancel A380 orders following Airbus’ predicted delay of up to two years on average, made public in October. The setback would cost the European plane maker $6 billion in lost profits of its parent company, European Aeronautic Defence and Space Co., over four years.
Boeing will begin deliveries of the 777 Freighters in 2009. The FedEx request pushes lifetime orders on the freighter to 38 since its launch in 2005 with an order from Air France.
The Everett-built 777 Freighter is based on the 777-200 Longer Range passenger plane. It is the world’s longest-range twin-engine freighter, flying up to 6,100 nautical miles.
“We’re looking forward to working with FedEx on this new chapter in our relationship,” said Ray Conner, Boeing Commercial Airplanes vice president of sales for the Americas. “The 777F will have unmatched capacity for a twin-engine freighter and is a perfect complement to the existing FedEx fleet of aircraft.”
Boeing shares rose $2.73, or 3.4 percent, to $83.21 Tuesday, while shares in EADS fell 3 percent to $26.26 in Paris. FedEx shares rose 68 cents to $114.62 in afternoon trading on the New York Stock Exchange.
Airbus had previously taken a total of 167 firm orders for the A380, including an eight-plane order from Qantas Airways Ltd. announced last month. Dubai-based Emirates Airline, which has ordered 45 of the A380s and is the program’s largest customer, said last month it would send a team of technicians to France to assess the accuracy of promised delivery dates for the A380 superjumbo. Emirates recently canceled an order with Airbus for its A340-600 aircraft, saying it would opt for Boeing’s 777 passenger planes instead.
FedEx said it will continue to add new and used Airbus jets into its fleet in coming years.
“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 Bronczek, president and chief executive officer of FedEx Express.
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