These aircraft will replace the MD-11, the company's current long-range inter-continental aircraft.

According to FedEx Corp chairman, president and chief executive officer Frederick W Smith, "The A380 will be capable of flying directly between Asia, Europe and our hubs in the US with nearly twice the payload of the MD-11."

"Rather than operating daily multiple MD-11 aircraft from these markets, we will be able to operate with a single aircraft, the A380, with unit costs expected to be substantially lower than the MD-11. This is absolutely the right strategic decision for our customers, shareholders, and our nearly two lakh employees around the world," Mr Smith added.

As a launch customer for the A380-800F, FedEx Express has executed a memorandum of understanding that is subject to the execution of a definitive purchase agreement. FedEx Express plans to take delivery of three aircraft each in 2008-2010 and one aircraft in 2011. FedEx Express also holds options from Airbus for an additional number of A380 aircraft. Other terms of the agreement were not disclosed.

Airbus chief executive officer Noel Forgeard said, "The FedEx order is a major milestone in the future of the A380 programme. FedEx is our first US operator for the airplane and the first all cargo operator for the freighter version.

The decision to acquire the A380-800F follows a two-year study at FedEx Express of the company's long-term needs for very large, long-range aircraft. FedEx Express reviewed proposals from both Airbus and Boeing for such an aircraft before selecting the A380-800F.

According to Mr Smith, "We considered a variety of options including the Boeing 747X Stretch, but none met our anticipated demands in the international air cargo market as efficiently as the A380-800F."