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Does Fedex Need The A380F?

Sat Jan 06, 2001 1:30 pm

Seeing that the WSJ has reported FEDEX close to signing an A380F deal for up to 10 birds, I have the following question. Does FEDEX need the A380F? This is a company who can't find the cargo to fill a 747-400F and whose largest aircraft is the MD-11. While I don't doubt the journal (although they and other sources reported 747XF interest within the last month), I find it fool hard for FEDEX to order the A380. I assume that they would use the aircraft on inter-hub runs, but again if you can't find the economics to make a 747-400F work how the heck is an A380F going to fit the bill?
"History does not long entrust the care of freedom to the weak or timid." D. Eisenhower
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RE: Does Fedex Need The A380F?

Sat Jan 06, 2001 1:43 pm

I guess the head of FedEx has some reason for it good or bad.
So far this is the oldest I've been.

RE: Does Fedex Need The A380F?

Sat Jan 06, 2001 1:43 pm

I agree,

I might also add that the A380F will cost them Sooooooooooooooooooooooo much more money than the 747XF would. The new 747 freighters seem to have it over of the A380 freighters. This is for various reasons, such as cargo capacity and and doors and total weight.
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RE: Does Fedex Need The A380F?

Sat Jan 06, 2001 8:00 pm

Why does everybody seems to think that if an airline doesn't operate the 747...they don't need the A380 ?!
And yes, if Fedex orders the A380, they do need it. They don't order it for prestige or whatever..they just need an ultra large freighter to connect their hubs. a limo but with wings

RE: Does Fedex Need The A380F?

Sat Jan 06, 2001 8:40 pm

At neary US$300 million a copy, they have to be mad!!!! In any case, the available payload is actually less than on a B747-400F.

RE: Does Fedex Need The A380F?

Sat Jan 06, 2001 9:26 pm


You mean the payload on A380F is less than on 747-400F? Can you prove that (with numbers)? Cause I (and many others with me) don't believe you!
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RE: Does Fedex Need The A380F?

Sat Jan 06, 2001 9:44 pm

Cargo requirements depend on whether carriers reach their maximum allowed weight or max. volume first....that's a matter for the airlines.....payload isn't a deciding factor for many (cargo) airlines.....
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RE: Does Fedex Need The A380F?

Sat Jan 06, 2001 10:00 pm

Agree to those OO-AOG and Juul.

Only CEO and commitee will know how Fedex goes. Aircraft order exists not only for replacement. Does anyone of us know what Fedex dreams to do?

And don't be silly. Who will believe that almost double sized pax plane can't load even same quantity of cargo?

RE: Does Fedex Need The A380F?

Sat Jan 06, 2001 10:12 pm

It was in Flight International a few weeks back - I'll dig it up and post it here. I have to admit I was surprised as well for a bit - until I remembered that as an ultra long range aircraft, most of its MTOW is taken up with fuel.
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Airbus Will Sell To FDX Cheaply.

Sat Jan 06, 2001 11:37 pm

The A380F's FedEx will get will cost well below $200 million U.S. a copy. Airbus has been giving away the A380's to the launch customers and they really need to bring on a couple more airlines. FedEx cannot afford to ignore this deal. Forget $230 million a copy for a FDX A380, they will pay about $175 million a copy. The Wall Street Journal, Reuters, and DLJ reported SQ paid slightly less for their A380's than they would have paid for a 744!!! Now is the time to commit to the A380. Everyone knows (Airbus included), the $12 Billion is going to be made up by sales AFTER these intial 50-70 aircraft. I still think they won't make money, but I'd love to see it fly!! By the way, recent financial articles say Airbus will have to make $60 million profit PER AIRCRAFT on the first 250 aircraft just to make back their initial investment. They certainly aren't doing that right now. Finally, don't forget that any freight airline using the A380F will have to invest in specialized equipment at each of it's possible locations in order to get the cargo on and off the high 2nd deck. Current loaders won't come close. That is a BIG expense. Also, you won't be having some of the higher cube items on an A380F due to the 2nd deck floor/1st deck ceiling height limitation. Still, it will carry a very large amount of standard containers and this will likely work for FDX, an airline which uses standard containers (if I remember correctly).
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RE: Does Fedex Need The A380F?

Sun Jan 07, 2001 12:04 am

Would you not think though that Boeing would be as desperate to secure 747X orders? Or will they let the project slip put it simply, if Boeing want to launch the 747X, then they'll have to match Airbus's pricing......that is though, if they want to launch it...
UPS Pilot
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Fed Ex Is Crazy!

Sun Jan 07, 2001 6:25 am

I respect Fed Ex but the decision to purchase the A380 is crazy!

The WSJ stated:
"Like executives at some passenger carriers that have ordered the A380, FedEx Chairman and Chief Executive Frederick W. Smith is said to view the A380 as not only an efficient vessel for moving packages, but as an all-new-design plane that would symbolize the company's ambitions".

There is no proof how effecient the A380 will be or if it will even get off the ground. There are only estimates! The factual proof won't be available until they get one built and airborne!

Fed Ex re-identified themselves again with the introduction of Fed Ex ground. Fed Ex ground cannot even service every address in the United States and desparately need to develop their ground infrasctucture. Fed Ex has an enormous amount of debt. Domestic volume is flat. They already have too many aircraft. All the MD-11's are not even in Fed Ex's hands yet that they purchased from airlines, They have alot of DC-10's sitting in storage for MD-10 conversion, the 727-100 fleet is being retired and they will need to replace them since you can't drop an A380, DC-10, or MD-11 into a small airport!

UPS was awarded flights to China and Northwest is going to fly 747 freighters to China also. Fed Ex is going to lose quite a bit of volume in Asia because of this.

So with rising fuel prices, signs of a slowing American economy, flat volume growth, lack of ground infrastructure, high debt, increased competition and Fred Smith wants to spend 2 billion to increase Fed Ex's debt and purchase the A380 to "symbolize the company's ambitions".

This is going to end up were ZAP MAIL did with Fed Ex!

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