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FEDEX TO BUY SUPER JUMBO AIRBUS A380-800 FREIGHTERS

FEDEX TO BUY SUPER JUMBO AIRBUS A380-800 FREIGHTERS

   Federal Express said it has signed a memorandum of understanding with Airbus Industries to buy 10 new super jumbo A380-800 freighters.

   At a press conference in Washington Tuesday, Frederick W. Smith, chairman, president and chief executive officer of FedEx Corp. called the deal with the European aircraft builder “a very strategic and important acquisition” for the carrier. Financial terms of the deal were not disclosed.

   The first two A380-800 freighters are expected to enter the FedEx international fleet in 2008, with two more in both 2009 and 2010. The last freighter will join the fleet in 2011. FedEx is considered the official launch customer of the cargo airlines to use the new planes.

   Alan B. Graf Jr. executive vice president and chief financial officer of FedEx, said the company studied a variety of aircraft, even the Boeing stretch version of the 747 freighter, before picking the A380-800. “This was clearly the winner,” he said.

   The A380-800 is expected to fit efficiently into FedEx’s global operation, which is based on its existing fleet of MD-11 freighters. However, the A380-800 can carry up to 165 tons of cargo or 66 containers, compared to 90 tons or 33 containers in the MD-11. As the A380-800 enters the fleet, Smith said he expects to phase more of the MD-11s into the domestic fleet.

   The triple-deck, super jumbo freighter will also use FedEx’s current cargo equipment. The plane is expected to load and unload in 20 to 23 minutes, about the same time it takes the MD-11, said David Bronczek, president and CEO of FedEx.

   Another advantage to the A380-800 is that it will meet the tighter slot-time requirements of the world’s airports, and is cleaner and quieter to operate. “It’s a friendly green giant,” said Noel Forgaerd, CEO of Airbus.