Re: Why a new super-jumbo isn't going to be built anytime soon.

Date:         16 Jun 97 21:35:38 
From:         Eric <*Eric@Euronet.be*>
Organization: Lufthansa BRU
References:   1 2 3 4 5
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Gregory Glockner wrote:
> But besides routes between their big hubs, does FedEx really have a
> use for a super-jumbo?  At best, this represents maybe 10 A/C.  Given
> the development costs, it might be cheaper to run double runs of
> current planes (principally MD-11's).

It was never my intention to imply FedEx was going to buy hundreds of
A3XX. I actually think 10 is what they have in mind.

Sometimes, the cheapest solution is not the best for FedEx. In Europe,
they are at a disadvantage vis-à-vis their competitors because the last
pick-up is much earlier at FedEx than with other companies (in Belgium,
for instance : 3 pm for FedEx, 6 pm for UPS and TNT, 7 pm for DHL). The
reason is that FedEx is treating Europe just like a big US city, where
next day by 10:30 to "more of the USA" must be available, which means
their planes must leave the Paris gateway around 7 pm to be on time in
Memphis.

Traffic is heavy on the Atlantic routes, even at that time, so if FedEx
can operate only a single aircraft and enjoy a late departure, thus
offer later cut-out times, I think they will.

Beside, FedEx won't have to bear development costs, they will just pay
the aircraft's price like any other customer. They may even get a
discount if they're launch customers. In the long run, one recent plane
with higher capacity is cheaper to operate than 2 recent planes with
half the capacity.

Being a launch customer doesn't entail buying a lot of aicraft either.
French regional airline Brit Air is launch customer for the 70 seat
streched version of the Canadair RJ, the RJ-700, with an order for... 4
aircraft.