Press Releases
New Long-Range Aircraft to Offer Unprecedented Efficiencies
HONG KONG, Jan. 16, 2001 - FedEx Express, a subsidiary of
FedEx Corp. (NYSE: FDX) plans to acquire the A380-800F, the
new high-capacity, long-range aircraft from Airbus Industries
to fly intercontinental and Asian routes. FedEx Express will
take delivery of 10 of the aircrafts beginning in 2008 providing
superior service capabilities in key international air cargo
markets that will exceed the capacity of the MD-11, the company's
current long-range intercontinental aircraft.
"Global commerce trends in the 21st century will dictate
the need for a larger aircraft, capable of flying longer
distances and offering greater efficiencies than those provided
by aircraft available today," said Frederick W. Smith, chairman,
president and chief executive officer, FedEx Corp.
"The A380 will be capable of flying directly between Asia,
Europe and our hubs in the U.S. with nearly twice the payload
of the MD-11," said Smith. "Rather than operating daily multiple
MD-11 aircraft from these markets, we will be able to operate
with a single aircraft, the A380, with unit costs expected
to be substantially lower than with the MD-11. This is absolutely
the right strategic decision for our customers, shareholders
and our nearly 200,000 employees around the world."
The decision to acquire the A380-800F follows a two year
study at FedEx Express of the company's long-term needs for
very large, long-range aircraft. Experts in aviation and
international trade, including Airbus and The Boeing Company,
forecast seven percent average annual growth in the international
air cargo market over the next 20 years. Asia is predicted
to lead this growth.
"The Asian region is a key growth market for the global air
cargo industry. Over the next two decades, Asia is predicted
to lead the world's air cargo growth at an average of eight
and a half percent annually. At least half of the world's
total trade flows will come from Asia over the next 10 years.
We recognize the huge potential that this region offers,
and this new aircraft acquisition is both a reflection of
our confidence in the region and a measure to ensure we meet
the anticipated growth in Asia," said Mr. David L. Cunningham,
Jr. President of FedEx Asia Pacific.
"Many of the Asian markets including China, are growing as
manufacturing and industrial centers. These export-driven
economies are set to benefit as exporters gain access to
higher capacity, longer range and enhanced efficiency that
the A380-800F is capable of providing. This will help contribute
to the enhancement of Asia's competitiveness as an export
region," continued Mr. Cunningham.
As the launch customer for the A380-800F FedEx Express will
take delivery of three aircraft each in 2008-2010 and one
aircraft in 2011.
"The FedEx order is a major milestone in the future of the
A380 program. FedEx is our first U.S. customer for the airplane
and the initial customer for the freighter version," said
Noel Forgeard, Airbus Chief Executive Officer. "This makes
the A380 the first new aircraft program in which cargo and
passenger models are launched at the beginning." Cargo variants
normally follow the passenger models by a few years. "The
A380 will be a global aircraft not only in terms of its operational
capabilities, but in terms of its construction," said Forgeard.
With annual revenues of US$19 billion, FedEx Corp. is the
premier global provider of transportation, logistics, e-commerce
and supply chain management services. The company offers
integrated business solutions through a network of subsidiaries
operating independently, including: FedEx Express, the world's
largest express transportation company; FedEx Ground, North
America's second largest provider of small-package ground
delivery service; FedEx Logistics, an integrated logistics,
technology and transportation-solution company; FedEx Custom
Critical, the world's largest provider of expedited time-critical
shipments; and FedEx Trade Networks, a provider of customs
brokerage, consulting, information technology and trade facilitation
solutions. More than 2.5 million customers are connected
electronically through the FedEx information network and
approximately two-thirds of its U.S. domestic transactions
are now handled on-line.
Airbus this month converted its legal structure from a consortium
of European companies to that of a fully integrated company.
The European Aerospace Defense and Space Company owns 80
percent of Airbus and BAE Systems owns 20 percent. The company
produces a full range of passenger aircraft from 100 seats
to the 555-seat A380, as well as other freighter models.
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