Posted By: Janine Delacroix

by Jitendra Joshi

WASHINGTON (AFP) - Airbus's A380 superjumbo hit more turbulence as US cargo giant FedEx became the first airline to pull out of the troubled project, ordering 15 Boeing 777 aircraft instead.
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FedEx Corp. said its Express unit had cancelled an order for 10 freighter versions of the European superjumbo "after Airbus announced significant delays in delivery of the A380".

Instead, FedEx Express said it was buying 15 new Boeing 777 Freighter planes with options to purchase another 15. No purchase price was given.

Airlines around the world have grumbled at the Airbus delays, but the FedEx decision marks the clearest sign yet of customer displeasure over the European company's failure to stay on schedule for the launch of its flagship plane.

The A380 is facing delivery delays of up to two years because of production problems. Singapore Airlines is set to be the first carrier to fly the new plane, but not before October next year at the earliest.

FedEx Express was to have been the first cargo carrier to take delivery of the A380, in August 2008, for use between its US and Asian hubs. But the delays forced it to turn to the smaller Boeing 777.

FedEx Corp. chief executive Frederick Smith said the company had made "significant investments in our network" to meet rapidly growing demand for air cargo.

"Therefore, it was necessary and prudent for us to acquire the Boeing 777 Freighter," he said in a statement.

"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."

However, FedEx Express will remain the largest customer for widebody Airbus planes. The company plans to add six new A300-600 freighters to its fleet in 2007.

A spokeswoman for Airbus in France said it regretted the FedEx decision "but we understand that they had an urgent need for the means to continue their expansion".

"We think that the A380 freighter will be an excellent plane for the 21st century offering the best performances to its clients," she added.

When it first announced the A380 order in January 2005, FedEx lauded the new plane for offering twice the payload capacity of the largest aircraft in its current fleet, the MD-11.

In its freighter version, the A380 will offer over 150 tonnes of cargo capacity and a range of 6,000 nautical miles (11,100 kilometres), compared to 78 tonnes and 6,100 nautical miles (11,300 kilometres) for the twin-engine 777.

FedEx said it expected to take delivery of the first new Boeing planes in 2009.

"The 777F will have unmatched capacity for a twin-engine freighter and is a perfect complement to the existing FedEx fleet of aircraft," Boeing Commercial Airplanes vice president Ray Conner said.

Since its launch in 2005, the 777 Freighter programme has won 38 orders from five customers.

Airbus is now down to 149 firm orders for the A380 from 15 airlines. The FedEx withdrawal leaves only 15 orders for the freighter version, including 10 from United Parcel Services (UPS).

UPS said it was maintaining its A380 order for now. "Our order and the status remain the same right now," company spokesman Mark Giuffre told AFP.

"However, we continue to evaluate the aircraft and the order, and have asked Airbus for more information regarding the status of the projected delivery schedule that they have provided us with," he said.

Airbus's parent, the European Aeronautic Defence and Space Company, has said the delays mean it will now have to sell 420 of the superjumbos to break even on the ambitious project, instead of 270 as previously announced.

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