Now this is big news.

Today FedEx (FDX:NYSE) announced it was buying 15 Boeing 777 freighters — and canceling its order of 10 Airbus A380 aircraft.

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.

This is huge, as if there were two companies that were thought to be willing to wait for the A380’s delays more than most, it was UPS and FedEx.

Not FedEx. Can UPS be far behind?



Given the closeness with which FedEx had worked with Airbus in the development of the freighter version of the aircraft — and the fact that FedEx is walking away from it — you have to assume this move signals a belief on the part of FedEx that the aircraft simply is never going to do what it needs to do — in terms of freighter performance.