Fedex cancels A-380 order
11-09-2006, 07:57 AM
#61
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Joined APC: Sep 2006
Position: Vertical
Posts: 144
Originally Posted by TonyC
Without going down the list of customers and examining their fleets, I'll venture a guess that there are more than a few A340 operators on the list. I realize that FedEx and UPS are not on that list, but the customers for the passenger versions are already operating large passenger jets, and the A340 is enjoying widespread use already.
I suspect that the list of interchangable parts will be quite short. Technology advances have produced vastly different systems. High pressure hydraulic systems, and pressurization systems powered by electrics vice engine pneumatic bleed are just two radically different system designs that come to mind.
I read in one of the FedEx statements that the 777F will only carry half the payload of the A380. That sounds like the MD-11. Yes, I know the range was not included the comparison. I think more than stopgap, the 777F is an EMERGENCY fix for the delay of the A380. The growth is there, and we're determined to take advantage of it. If the A380 won't be able to dance, we just have grab a partner that IS ready to dance. Is it our first choice? Well, not in the long run, but at present, it's the ONLY choice. (For the Whale lovers, I'll go along with BEST choice. It's all about the containers.) There was some suggestion that Fred was hoping other cutomers would cancel first and we'd be move closer to the front of the line. That didn't pan out, and he did what he had to do.
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I suspect that the list of interchangable parts will be quite short. Technology advances have produced vastly different systems. High pressure hydraulic systems, and pressurization systems powered by electrics vice engine pneumatic bleed are just two radically different system designs that come to mind.
I read in one of the FedEx statements that the 777F will only carry half the payload of the A380. That sounds like the MD-11. Yes, I know the range was not included the comparison. I think more than stopgap, the 777F is an EMERGENCY fix for the delay of the A380. The growth is there, and we're determined to take advantage of it. If the A380 won't be able to dance, we just have grab a partner that IS ready to dance. Is it our first choice? Well, not in the long run, but at present, it's the ONLY choice. (For the Whale lovers, I'll go along with BEST choice. It's all about the containers.) There was some suggestion that Fred was hoping other cutomers would cancel first and we'd be move closer to the front of the line. That didn't pan out, and he did what he had to do.
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11-09-2006, 09:03 AM
#62
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Joined APC: Sep 2006
Position: Vertical
Posts: 144
What I'm wondering about is the bold paragraph below...
What is the 'cancellation zone'? Cancellation by who, Airbus or the order holder?
News
EADS to Affirm Orders on Fears Of Cancellations
European Aeronautic Defence & Space Co. said some orders for the cargo version of its delayed Airbus A380 superjumbo jetliner have to be reconfirmed and still could be canceled.
The statement by the Franco-German aerospace company and Airbus parent follows FedEx Corp.'s cancellation Tuesday of its orders for 10 A380 freighters, the first such move since Airbus disclosed delays to the program this past summer. The troubles at Airbus, along with the weak U.S. dollar compared to the euro, contributed to a third-quarter net loss for EADS.
EADS Chief Financial Officer Hans Peter Ring said yesterday that Airbus's 15 remaining orders for the freighter version of the A380 -- 10 from United Parcel Service Inc. and five from International Lease Finance Corp., a unit of American International Group Inc. -- would have to be "reconfirmed." He cautioned that some of these orders are in the "cancellation zone."
A UPS spokesman said Tuesday that the company was reviewing Airbus's projections for completing production and hadn't decided whether it would alter or cancel its order. An ILFC spokesman yesterday said the company had no comment.
EADS also warned that cost cuts at the aircraft maker would be "crucial" to a successful launch of its A350 XWB, a wide-body jet seen as vital to preventing the loss of further ground to U.S. rival Boeing Co. The A350 XWB would be Airbus's response to Boeing's fuel-efficient, fast-selling 787 Dreamliner.
EADS said yesterday that its board will make a decision on the future of Airbus's planned A350 XWB in the next few weeks. Mr. Ring said EADS management wanted to be sure cost cuts were coming through and that Airbus could "deliver on all programs at the same time" before going ahead with the A350 XWB, which stands for "extra wide body" and is a modified version of the originally approved A350.
EADS posted a net loss of 195 million euros ($249 million) for the third quarter, compared with a year-earlier net profit of 279 million euros. Revenue rose 14% to 8.49 billion euros from 7.43 billion euros, helped by strong sales of both military and civilian aircraft.
Profit before taxes and interest numbers was slightly above most analysts' expectations, helping to push EADS shares higher yesterday. In Paris, EADS shares rose 3.2% to end at 21.33 euros each.
Mr. Ring said the results "show we still have underlying stability and potential for top-line growth." However, he warned that the problems at Airbus and EADS's unprofitable Sogerma services business "need to be fixed urgently."
The company said charges associated with the A380, now two years behind schedule, totaled 1 billioneuros in the first nine months of this year.
Troubles at Airbus yesterday overshadowed better performances from EADS's helicopter, space and military aircraft divisions.
Simon Clow
Wall Street Journal
November 9, 2006
What is the 'cancellation zone'? Cancellation by who, Airbus or the order holder?
News
EADS to Affirm Orders on Fears Of Cancellations
European Aeronautic Defence & Space Co. said some orders for the cargo version of its delayed Airbus A380 superjumbo jetliner have to be reconfirmed and still could be canceled.
The statement by the Franco-German aerospace company and Airbus parent follows FedEx Corp.'s cancellation Tuesday of its orders for 10 A380 freighters, the first such move since Airbus disclosed delays to the program this past summer. The troubles at Airbus, along with the weak U.S. dollar compared to the euro, contributed to a third-quarter net loss for EADS.
EADS Chief Financial Officer Hans Peter Ring said yesterday that Airbus's 15 remaining orders for the freighter version of the A380 -- 10 from United Parcel Service Inc. and five from International Lease Finance Corp., a unit of American International Group Inc. -- would have to be "reconfirmed." He cautioned that some of these orders are in the "cancellation zone."
A UPS spokesman said Tuesday that the company was reviewing Airbus's projections for completing production and hadn't decided whether it would alter or cancel its order. An ILFC spokesman yesterday said the company had no comment.
EADS also warned that cost cuts at the aircraft maker would be "crucial" to a successful launch of its A350 XWB, a wide-body jet seen as vital to preventing the loss of further ground to U.S. rival Boeing Co. The A350 XWB would be Airbus's response to Boeing's fuel-efficient, fast-selling 787 Dreamliner.
EADS said yesterday that its board will make a decision on the future of Airbus's planned A350 XWB in the next few weeks. Mr. Ring said EADS management wanted to be sure cost cuts were coming through and that Airbus could "deliver on all programs at the same time" before going ahead with the A350 XWB, which stands for "extra wide body" and is a modified version of the originally approved A350.
EADS posted a net loss of 195 million euros ($249 million) for the third quarter, compared with a year-earlier net profit of 279 million euros. Revenue rose 14% to 8.49 billion euros from 7.43 billion euros, helped by strong sales of both military and civilian aircraft.
Profit before taxes and interest numbers was slightly above most analysts' expectations, helping to push EADS shares higher yesterday. In Paris, EADS shares rose 3.2% to end at 21.33 euros each.
Mr. Ring said the results "show we still have underlying stability and potential for top-line growth." However, he warned that the problems at Airbus and EADS's unprofitable Sogerma services business "need to be fixed urgently."
The company said charges associated with the A380, now two years behind schedule, totaled 1 billioneuros in the first nine months of this year.
Troubles at Airbus yesterday overshadowed better performances from EADS's helicopter, space and military aircraft divisions.
Simon Clow
Wall Street Journal
November 9, 2006
11-09-2006, 10:42 AM
#63
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Posts: 297
11-09-2006, 11:08 AM
#64
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Joined APC: Aug 2006
Posts: 1,433
What I'm wondering about is the bold paragraph below...
What is the 'cancellation zone'? Cancellation by who, Airbus or the order holder?
News
EADS to Affirm Orders on Fears Of Cancellations
European Aeronautic Defence & Space Co. said some orders for the cargo version of its delayed Airbus A380 superjumbo jetliner have to be reconfirmed and still could be canceled.
The statement by the Franco-German aerospace company and Airbus parent follows FedEx Corp.'s cancellation Tuesday of its orders for 10 A380 freighters, the first such move since Airbus disclosed delays to the program this past summer. The troubles at Airbus, along with the weak U.S. dollar compared to the euro, contributed to a third-quarter net loss for EADS.
EADS Chief Financial Officer Hans Peter Ring said yesterday that Airbus's 15 remaining orders for the freighter version of the A380 -- 10 from United Parcel Service Inc. and five from International Lease Finance Corp., a unit of American International Group Inc. -- would have to be "reconfirmed." He cautioned that some of these orders are in the "cancellation zone."
What is the 'cancellation zone'? Cancellation by who, Airbus or the order holder?
News
EADS to Affirm Orders on Fears Of Cancellations
European Aeronautic Defence & Space Co. said some orders for the cargo version of its delayed Airbus A380 superjumbo jetliner have to be reconfirmed and still could be canceled.
The statement by the Franco-German aerospace company and Airbus parent follows FedEx Corp.'s cancellation Tuesday of its orders for 10 A380 freighters, the first such move since Airbus disclosed delays to the program this past summer. The troubles at Airbus, along with the weak U.S. dollar compared to the euro, contributed to a third-quarter net loss for EADS.
EADS Chief Financial Officer Hans Peter Ring said yesterday that Airbus's 15 remaining orders for the freighter version of the A380 -- 10 from United Parcel Service Inc. and five from International Lease Finance Corp., a unit of American International Group Inc. -- would have to be "reconfirmed." He cautioned that some of these orders are in the "cancellation zone."
11-09-2006, 11:52 AM
#65
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Joined APC: Jun 2006
Position: A300 F/O
Posts: 193
UPS will cancel
My sources at UPS have said they will convert their A380 orders to numerous A330's. Airbus is aggressively pushing for UPS to be the launch customer of the 330...........
I'll bet this will be announced middle of next week.
I'll bet this will be announced middle of next week.
11-09-2006, 12:02 PM
#66
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Joined APC: Aug 2006
Position: Triple Capt
Posts: 608
Just DH'd from SIN to HKG and sat next to a Boeing guy who is in the Pax to Freighter conversions. He had some neat stuff to say.
He personally knew of the 777F decision about 5 weeks ago -- I believe that's when I first saw it on a post here...... something about "777's, 10 confirmed, mark it down....." or such.
He said the 757 mods would be done in the States in Mobile and DFW (?). I cannot remember where he said the 777 conversions would be.
The Boeing guy also said there were only 22 remaining active MD11's in pax service worldwide today and he speculated that FS just needed the lift and he needed it now. Can't wait 2 more years for the 380 to show up so Boeing made the pitch and closed the sale. He speculated that the first 777 conversions would be UAL's, early production "A" models, if you will.
I don't know if it's an "emergency" fix or not; looks like it could easily be long term.
Regardless, there's alot of inertia going on to plan for the 380 -- ramps, taxiways, loaders, infrastructure, etc.... That's a big wheel (no pun intended) to get stopped on a dime.
As always, when it's painted purple and sitting on the ramp, then it's happening (see LIDO for reference).
He personally knew of the 777F decision about 5 weeks ago -- I believe that's when I first saw it on a post here...... something about "777's, 10 confirmed, mark it down....." or such.
He said the 757 mods would be done in the States in Mobile and DFW (?). I cannot remember where he said the 777 conversions would be.
The Boeing guy also said there were only 22 remaining active MD11's in pax service worldwide today and he speculated that FS just needed the lift and he needed it now. Can't wait 2 more years for the 380 to show up so Boeing made the pitch and closed the sale. He speculated that the first 777 conversions would be UAL's, early production "A" models, if you will.
I don't know if it's an "emergency" fix or not; looks like it could easily be long term.
Regardless, there's alot of inertia going on to plan for the 380 -- ramps, taxiways, loaders, infrastructure, etc.... That's a big wheel (no pun intended) to get stopped on a dime.
As always, when it's painted purple and sitting on the ramp, then it's happening (see LIDO for reference).
11-09-2006, 12:21 PM
#69
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Joined APC: May 2006
Posts: 983
new and old
Originally Posted by Huck
I thought the 777F's were new jets....
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