Company Watch - FedEx.

Nov 13, 2006

FedEx Ditches A380, Switches To Boeing. FedEx Express said on Tuesday it would buy 15 Boeing 777-200F freighter aircraft and canceled its order of 10 A380-800F Airbus 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 remaining three in 2011. Nov 7, 2006

Airbus received a further blow on Tuesday when FedEx said it cancelled its order for 10 A380-800F freighter aircraft because of delivery delays, opting instead to buy planes from rival Boeing. EADS finance head Hans Peter Ring meanwhile cast doubt over the A380 freighter version -- UPS has 10 on order, while International Lease Finance Corporation (ILFC) has five The biggest buyer of the world's biggest plane, Emirates, said last month it would send its own audit team to Airbus before entering talks to address the A380's two-year delay. Emirates has 43 of the USD$300 million planes on order. Investors are also keen to hear news on whether Airbus EADS plans to go ahead with the development of the A350 XWB mid-sized aircraft, crucial if Airbus wants to take on Boeing's fast-selling 787 Dreamliner. Nov 8, 2006

FedEx to raise air, ground rates next year. FedEx says it will boost its air and ground rates in 2007. Rates at the company's air cargo subsidiary will climb 3.5%. Competitor UPS says it will announce its rate increase for 2007 during the next two weeks. Nov 6, 2006

Editor: Aram Gesar, eMail: [e-mail]

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Oct 30, 2006