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FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 12:57 am

FedEx cancels Swissair order
Mon, 26 Nov 01 - 12:02
AirWatch Newswire

American courier service Federal Express has cancelled a deal with Swissair, to buy 15 of the collapsed airline's McDonnell Douglas wide-body jets. According to an article in Flight International magazine today, FedEx has decided to suspend the deal in an effort to 'rein in capacity.' Swissair was rescued from bankruptcy by a last minute Government loan earlier this month and has since restructured around its former subsidiary Crossair.

Reuters reports today that the MD-11 was already an unpopular model of aircraft even before the industry slowdown began a year ago and that since September 11th, demand has been almost totally wiped out. The 15 Swissair jets, which the company had leased from its own unit Flightlease, are to be held by a group of unnamed banks until another buyer can be found.
 
gerardo
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 1:10 am

Could be more a problem for the leasing companies, which own the aircraft, than for Swissair.

Anyway, I wonder, what will happen with those MD11.

Regards
Gerardo
dominguez(dash)online(dot)ch ... Pushing the limits of my equipment
 
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 1:19 am

As the press release says, the aircraft belong to Flightlease, which is part of SAir Group.
 
seagull
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 1:33 am

FedEx is likely trying to just get a better price, they refuse to pay more than the market price for anything, and the current contract would have FedEx doing just that.
 
gibberish
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 1:41 am

Those are excellent aircraft and they're in very good shape. I really do wonder what will happen to them.

At least some of them will stay at Crossair until they too will eventually have to be replaced. They'll stay longer than they were planned to at Swissair, no doubt. That's cool though because the MD-11 is one of my favorite aircraft.

Swissair has a current total of 19 MD11, so what will happen to the other 4 (ex-LTU) aircraft?

gibberish
 
seagull
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 2:02 am

FedEx is getting 4 of them.
 
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lindy field
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 2:18 am

Is there any chance that Lufthansa Cargo or UPS would be interested in taking them instead?
 
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yyz717
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 2:48 am

I'm sure these 19 aircraft will stil find their way into the Fedex fleet and that Fedex is just trying to get a better deal.

The comment about the MD-11 being unpopular may be true for pax ops but it is very popular for cargo ops.

The LH MD-11's are GE-powered while the SW MD-11's are PW.....so I doubt LH would be interested in them.

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
VirginA340
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 2:55 am

What about UPS or any other cargo airline? Remeber that DEDEX is alsogetting afew DC-10s and the A380.
"FUIMUS"
 
Guest

RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 4:04 am

How about United Parcel Service getting those P&W 4462 powered MD-11s?
 
gerardo
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 6:27 am

The MD11 indeed belong to Flightlease, one of the SAirGroup companies, which filed for bankrupcy and will end its existence in the near future.

However, these are aircraft are re-financed somwhere else. That was, what I meant.

Gerardo
dominguez(dash)online(dot)ch ... Pushing the limits of my equipment
 
hkgspotter1
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 9:37 am

What about that airline that wanted to start ops with 44 L1011's ??, they may want them ?? Big grin Big grin Big grin Big grin Big grin Big grin
 
Guest

RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 10:31 am

what is the status on the MD-10 conversion? Didn't FedEx can a bunch of the old DC-10 conversions in order to reduce capacity?
 
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yyz717
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 10:43 am

World Airline Fleets reported recently that Fedex reduced the MD-10 program from 89 to 60 aircraft with the reduced 29 aircraft to be used for spares.

I dumped at the gybe mark in strong winds when I looked up at a Porter Q400 on finals. Can't stop spotting.
 
seagull
Posts: 334
Joined: Sat Jun 30, 2001 5:58 pm

RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 2:01 pm

World Airline Fleets got it wrong (not the first time). The total was reduced _to_ 89, the other 29 options will not be taken.
 
aviasian
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 4:06 pm

MD-11s unpopular with passengers?

Not me . . . or my friends who have flown in them! They are spacious, they are powerful . . . really powerful and have superb take-offs!

I flew on HB-IWB and HB-IWN (Swissair asia) about five weeks ago, and I love it. Also enjoyed my flight on the MD-11s of EVA Air, Thai Airways International, Finnair, Malaysia Airlines (lsd fm World AW) and JAL.

Perhaps we will soon see them operating Haj flights for Garuda . . . in hybrid colours please.

KC Sim
Bangkok
 
LJ
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 5:40 pm

Doesn't FedEx has to pay a penalty if they don't take over the MD-11s? Moreover, as SR Technics does the conversion.

Anyway this has probably severe impact on the value of all remaining MD-11s.

Regards
Laurens
 
VH-BZF
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RE: FedEx Cancels Swissair MD11 Deal

Tue Nov 27, 2001 7:28 pm

This was from the Reuters news service:

Fedex drops buy of 15 Swissair wide-bodies - Flight
Monday November 26, 6:04 AM EST

LONDON, Nov 26 (Reuters) - U.S. express shipper Fedex Corp (FDX) has dropped a plan to buy 15 McDonnell Douglas MD-11 wide-body airliners from collapsed Swissair Group (SWSZn), industry weekly Flight International reported on Monday.

Unnamed banks would end up owning the planes, which Swissair operates on lease from its own Flightlease unit, Flight said.

The magazine quoted the lessor as saying the deal had been "suspended". Fedex was trying to rein in capacity, it said, citing industry sources.


Swissair is trading under protection from creditors and has debts exceeding assets. It is expected eventually to be wound up, with some of its operations undertaken by affiliate Crossair AG (CROZn).

The group's bankruptcy had entitled Fedex to cancel the planes, but the U.S. company would still be interested in the planes if it could get them in two or three years, Flight said.

Whoever eventually buys the MD-11s is unlikely to pay as much as Fedex agreed to pay for them in 1998, and the loss of value may be carried partly by the banks who financed them.

The MD-11 was already an increasingly unpopular type of aircraft before the global aviation sector entered a slowdown a year or so ago. Then the September 11 attacks crushed demand for air travel, leaving the industry with little interest in operating types that are fairly costly to run, such as the MD-11.

Before the attacks, 15 MD-11s would have been worth almost $1 billion, depending on their age.


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