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FedEx Corp.'s decision to drop its order for 10 Airbus A380s Freighters in favor of 777s from Boeing is a blow to the European manufacturer's drive to match the Americans' market penetration in both passenger and cargo services for large, long-haul aircraft.

Freighters are an Airbus soft spot, but not its only one. For instance, the EADS board still has not given the go-ahead for Airbus to launch the A350XWB to rival Boeing's 787, although a decision is promised soon.

EADS and Airbus Chief Financial Officer Hans-Peter Ring told analysts that all A380 freighter orders are "in the cancellation zone" because they need to be reconfirmed due to program delays. The other big freight star on the Airbus order list is United Parcel Service, which holds 10 firm and 10 optional orders. UPS officials say FedEx's decision prompts "concern for us." They are in discussions with Airbus. International Lease Finance Corp. is the remaining freighter customer with an order for five; officials could not be reached for comment.

Airbus was hoping 2006 would be the year it closed its historic lag in freighter sales with Boeing. But, aside from the A380 Freighter slippage, it failed to launch the A330-200 Freighter last summer despite its CEO's determination to do so. Also, it announced closure next year of the A300-600 production line, killing future sales to customers such as FedEx. So far, only the A320/A321 freighter conversion program has moved forward.

Passenger A380s are in jeopardy, too, although one carrier seen as a likely cancellation candidate, Virgin Atlantic, chose instead to defer delivery of its six aircraft so it can wait for the double-decker to mature. Thai Airways International President Apinan Sumanseni says his airline expects to decide by the end of the month whether to cancel its order for five aircraft. Malaysian Airlines is reviewing its entire fleet plan and Emirates, the largest of the A380's 15 customers with 43 of its 149 orders, also is considering changes, although industry officials believe those are less likely.

The A380 program could be a factor in Lufthansa German Airlines' pending decision on extending its very large widebody fleet (AW&ST Nov. 6, p. 45). Lufthansa is regarded as a likely launch candidate for the 747-8 Intercontinental, the passenger version of Boeing's third-generation update of the aircraft that Airbus hopes the A380 will replace. Continued program problems also could hamper Airbus as it chases the biggest order prospect on the horizon, British Airways' long-haul modernization decision that is expected next year.

The A380 freighter program's weakness was becoming apparent in May when Emirates provided an early blow by switching two orders to passenger models, saying the freighter needed "more work." Still, that decision resulted in no net loss for the Airbus order book, although it represented a public relations setback when the carrier then ordered 10 747-8 Freighters. Emirates also is buying eight 777 Freighters.

FedEx founder and Chairman Frederick W. Smith noted that it was necessary to switch orders to keep pace with rapidly growing demand for traditional express air freight, for which FedEx is most famous, and more traditional air cargo shipments. FedEx has made "significant investments in our network to meet customers' needs," Smith said, making it "necessary and prudent for us to acquire the Boeing 777 Freighter."

At list prices, the 10 A380s FedEx ordered were valued at $2.3 billion; the 15 777s it is now buying are valued at $3.5 billion.