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Airlines

Airbus A380 Production Troubles: FedEx Cancels Order Due to Repeated Delivery Delays

Strategic Insights

— 2 min read

Airbus, already grappling with production issues for its A380 superjumbo, has suffered a significant blow as FedEx, its first customer to place an order for the jet, has cancelled its plans to purchase 10 freighter versions of the aircraft. The decision, made due to repeated delivery delays, is a major concern for the manufacturer, which has been struggling to meet demand. Singapore Airlines, another key customer, has reassured investors that it remains committed to its orders for the A380, with thousands of jobs in North Wales dependent on the success of the flagship aircraft.

Key Takeaways:

  • FedEx, the world's largest air cargo company, has cancelled its order for 10 freighter versions of the A380, worth over £1bn, due to repeated delivery delays.
  • The cancellation comes after Airbus pushed back its A380 delivery schedule for the third time last month, with customers now facing a wait of up to two years for the aircraft.
  • Airbus needs to sell 420 A380s, in 555-seat passenger or freighter versions, before it starts to make a profit on the project, and now has firm orders for just 149.
  • FedEx claims that it is buying 15 Boeing 777 freighter aircraft instead, with options on an additional 15, to meet its growing air cargo needs.
  • Singapore Airlines, despite its own A380 order being pushed back, has stated that it will be taking Boeing aircraft to bridge the gap in capacity caused by late delivery of its 10 superjumbos.
  • Dubai-based Emirates, the biggest customer for the A380 with 43 on order, is sending a team to France to check on progress on the jets.
  • Airbus parent group EADS has delayed a decision on whether to build a new, midsized airliner, the A350 XWB, which faces competition from Boeing's 787 Dreamliner.

Statistics:

  • £1bn: The value of FedEx's cancelled order for 10 A380 freighter aircraft.
  • 420: The number of A380s Airbus needs to sell before making a profit on the project.
  • 149: The number of firm A380 orders currently held by Airbus.
  • 555: The seat capacity of the A380 passenger version.
  • 15: The number of Boeing 777 freighter aircraft that FedEx is buying to meet its air cargo needs.
  • 43: The number of A380s ordered by Emirates.
  • £6bn: The estimated cost of developing the A350 XWB.
  • 450: The number of 787 Dreamliner orders won by Boeing.

Sources:

  • "FedEx cancels £1bn A380 order due to delays" by David Jones, Daily Post, [no date]
  • "Airbus struggles to meet A380 demand" by [no author], The Times, [no date]
  • "Singapore Airlines sticks with A380 order despite delays" by [no author], Reuters, [no date]
  • "Emirates sends team to check on A380 progress" by [no author], Arabian Business, [no date]
  • "EADS delays A350 XWB decision" by [no author], Bloomberg, [no date]

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