|
The
world's largest cargo airline is the latest flashpoint for
competition after Boeing last week launched a freighter version
of its 777X to compete with a new Airbus A350 freighter.
Air cargo demand has been stoked by online shopping, supply
chain disruptions and a drop in passenger flights - which often
also carry cargo in their holds.
"Cargo is the only part of the jetliner market that has fully
recovered, and is still growing," AeroDynamic Advisory analyst
Richard Aboulafia said. "Given a very depressed twin aisle
market, cargo widebody orders are the only ray of hope."
At one point FedEx had emerged as a possible launch customer for
the 777X, joining Qatar Airways at a White House signing
ceremony, but a decision is not now expected before the summer.
FedEx is locked in talks over pay and retirement with pilots who
argue they helped deliver record profits and maintain the
economy during the pandemic - discussions that could be strained
by an immediate big-ticket investment, two of the people said.
"Aircraft acquisitions are strategic business decisions and we
have deferred any new commitments as we evaluate and prioritize
potential capital investments," a FedEx spokesperson said.
The Air Line Pilots Association, which represents FedEx crew,
said it wants an agreement that recognizes their role.
"Significant bargaining clearly remains," a spokesperson said.
PRODUCTION PLANS
Memphis, Tennessee-based FedEx is a mainly Boeing customer, with
83% of its trunk fleet using models such as the 777, 767 and
757, and legacy McDonnell Douglas tri-jets, though it also
operates 67 Airbus A300-600s.
Barring surprises, Boeing is seen as front-runner to win a 777X
deal from FedEx though any delay leaves Airbus an opening to
fight for the business.
Airbus was at the center of an unusual twist last month when the
Federal Aviation Administration released a proposal to put laser
missile defenses on the smaller Airbus A321, a plane that FedEx
does not operate, only to withdraw its review days later.
Research into defenses for freighters operating in parts of the
world facing threats from portable anti-aircraft systems is not
new. But the surprise disclosure, described by one source as
inadvertent, linked FedEx to Airbus for the first time in years.
Airbus and Boeing declined to comment.
For planemakers, the stakes involved in winning freighter orders
are especially high as they try to shore up production of sister
models hit by a long-haul travel slump.
To win Qatar Airways' launch order for 34 777X freighters,
Boeing agreed to switch a third of its existing order for 60
777X passenger planes to freighters.
Although that limits the number of net new 777X-family orders to
just 14, analysts said it gives Boeing greater certainty that
the underlying jets will be produced and could set the tone for
other freighter negotiations.
Airbus has also had to sacrifice passenger jet orders to win
deals for its new A350F freighter, according to monthly data.
Boeing's soon-to-be-discontinued 747-8, as well as the 777F and
767F, cannot be produced after 2027 due to emissions rules.
The freight boom is not without risks.
Those include a rapid recovery in passenger flights that would
bring the belly space of under-used passenger jets back into
service, as well as unresolved U.S.-China trade tensions.
"Is this demand sustainable, especially when the global supply
chain returns to normal?" Vertical Research Partners analyst Rob
Stallard said. "And what happens to all those old passenger
widebodies that are parked up? It is a lot cheaper to convert an
old passenger widebody than to buy a new plane."
(Reporting by Eric M. Johnson in Seattle and Tim Hepher in
Paris)
[© 2022 Thomson Reuters. All rights
reserved.]
Copyright 2022 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
