Another blow for Airbus..
yahoo.reuters.com
FedEx cancels Airbus order, switches to Boeing
Tue Nov 7, 2006 1:24pm ET20
By Paritosh Bansal
NEW YORK, Nov 7 (Reuters) - FedEx Express, a unit of FedEx Corp. (FDX.N: Quote, Profile, Research), said on Tuesday it would buy 15 Boeing Co. (BA.N: Quote, Profile, Research) 777 Freighter aircraft and canceled its order for 10 Airbus (EAD.PA: Quote, Profile, Research) A380-800F aircraft due to delays in delivery.
FedEx said its agreement with Boeing also gives it options to purchase an additional 15 aircraft. It expects to take delivery of four of the 777 aircraft in 2009, eight in 2010 and the remainder in 2011. At a list price of $232.5 million to $240 million, the order will be worth at least $3.48 billion.
The cancellation of orders -- worth more than $2.5 billion -- is another blow to Airbus and its parent, EADS. The company has been dealing with production problems and costly delays with its A380 superjumbo, which has plunged the aircraft maker into crisis and forced it to reexamine projects and restructure its business.
The canceled agreement also included an option for another 10 aircraft, a FedEx spokesman said... |
