FedEx and the A380

The article entitled "Four Years from Launch: What's the Buzz on the A380" by Mark Bernstein in the April 2004 issue of your magazine sounds like one of the "gee whiz" articles Hugo Gernsback used to write about futuristic possibilities.

I find it hard to believe that a successful business like Federal Express would commit to 10 of these aircraft at $250 million each without having ever tried, or even seen one. One would think that the Chief Pilot at FedEx would want to fly one to see if it really would do the job for him.

The author goes on to show a map with a single hop across the Pacific from Memphis to Osaka. Yet, in the same article he states that the plane has a range of 6,500 miles. The direct line on a globe from Memphis to Osaka is 7,000 miles and planes don't fly that way; they fly in a great circle route.

What happened to the airline's rule that the flight should have an hour's reserve flying time in case the airport is closed when they get there? Furthermore, usually there is west-to-east jet stream that can reach a speed of more than 100 miles per hour, thereby reducing the aircraft's range. I suspect the first pilot to try to fly non-stop from Memphis to Osaka is going to ditch into the ocean about 500 miles east of Japan.

Jack A. Rickel, CEO
Comex Worldwide Corporation

Author Mark Bernstein responds:
Mr. Rickel is right on one point and off on two. He may find it "hard to believe" that FedEx would commit $2.5 billion to ten Airbus A380s without having taken them out on a test drive. Indeed, however, that is what FedEx has done, and that company is itself the source for that statement [which Airbus confirms].

Second, the piece was at some pains to reflect a variety of viewpoints. These included the thoughts of two leading expeditors, whose current position on the A380 was one of "wait and see." A freight hauling airline [Northwest], which announced no plans to acquire the plane; and the comments of a Boeing representative, who questioned whether a new A380 would much be used to haul freight when its costs is roughly ten times that of a used Boeing 747. And, for what it's worth, FedEx is the only carrier with current plans to use the aircraft for freight.

Mr. Rickel is entirely correct in his statement that, given the A380s reported range of 6,500 miles, a nonstop flight from Memphis to Osaka would put down 500 miles east of Japan. Differing ranges are reported for the A380 at this time (ranges of up to 8,000 miles). The writer erred in making what was in effect an apples and oranges comparison.

China Labor: Capitalism At Its Best?

I have never written a magazine before, never have felt the need. But I was floored by your lead article in the June issue entitled "Respecting Chinese Workers' Rights Makes Moral and Economic Sense" by Bob Baugh. I actually had to re-look to see if this was in some way paid advertisement space for the AFL-CIO. In a magazine that markets itself as a medium for US Executives with Global Vision, this article is as narrow minded, pro-stagnation as I have ever read. What Mr. Baugh and the AFL-CIO fail to realize is that the globalization of markets is not about China, thus making any law suit of this nature absolutely meaningless. It is about re-tooling to compete in these changing times. Please remind your global thinking audience that if it were not China, it would be Thailand, or India, or Pakistan, or Vietnam. You cannot possibly sue the world, can you?

As hard as it is to admit, globalization of markets is capitalism at its best. May the best markets win!

Timothy J. DeBruin
Sky Bear International
Appleton, Wisconsin

Editor's Note: Mr. DeBruin's response is to an article discussing a petition filed by the AFL-CIO with the United States Trade Representative charging that the Chinese government's restriction of workers' rights constitutes an unfair trade practice as defined by U.S. Trade Law.