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Print 51 comment(s) - last by kmmatney.. on Mar 6 at 11:45 PM

UPS follows FedEx in canceling A380 freighter orders

In November of last year, DailyTech reported that FedEx cancelled its order for 10 A380-800F freighters and instead went with 15 Boeing 777s. The cancellation notice left UPS as the sole customer for Airbus' A380-800F.

Today, we learn that UPS has also decided to back out and abandon the A380-800F. "Based on our previous discussions, we had felt that 2012 was a reasonable estimate of when Airbus could supply this plane," said UPS president David Abney. "We no longer are confident that Airbus can adhere to that schedule."

UPS had 10 planes on order with the option to purchase 10 additional planes from Airbus, but it looks as though Boeing's 747 may be the next best alternative for the shipping company. "It almost spells the demise for that cargo business, because the alternative to the 380 is the (Boeing) 747," said Chris Lozier, an analyst for Morningstar. "You would expect UPS to be at the negotiating table with Boeing right now, if not weeks ago, working out details for the 747."

The news comes just a week after Airbus announced that it was cutting 10,000 jobs. In addition, French unions plan to strike next week in response to the job cuts and German Airbus workers may also join in.

Airbus' A380 program has been plagued with number setbacks, most notably due to problems wiring the large aircraft.



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RE: Subsidies
By cochy on 3/2/2007 1:52:27 PM , Rating: 3
quote:
In the future, Airbus will learn, and will get more efficient. Eventually, they will be an even bigger source of competition for Boeing. But not today.


I would hope so. Every piece of news about that company for the longest time has been horrible. Seems like they are spiraling into the abyss. The A380 is Concord part 2. I can not see Airbus closing up shop over this disaster as I don't think Boeing can supply the entire world market.


RE: Subsidies
By KaiserCSS on 3/2/07, Rating: 0
RE: Subsidies
By Lord 666 on 3/2/07, Rating: 0
RE: Subsidies
By Scabies on 3/2/2007 2:24:27 PM , Rating: 5
...
someone should hit you for trying to tie in Sony (and thus the PS3) into an explicitly irrelevant news article. Do me a favor and hit yourself.


RE: Subsidies
By Lord 666 on 3/2/07, Rating: 0
RE: Subsidies
By stromgald on 3/2/2007 3:41:53 PM , Rating: 4
Not everything has to do with Sony. It's actually quite different from Sony since 1) the problems are different, 2) the failures mean different things for Sony and Airbus, and 3) Airbus receives heavy government support.

You automatically thinking of Sony just mean's you're infatuated with Sony.


RE: Subsidies
By kmmatney on 3/6/2007 11:45:17 PM , Rating: 2
Wasn't it the blu-ray entertainment centers that delayed the A380?


RE: Subsidies
By timmiser on 3/2/2007 9:24:33 PM , Rating: 1
quote:
I don't think Boeing can supply the entire world market.


Why not? They dominated it for so many years and they are already doing it again now.

2006 was a great year for Boeing but 2007 will be even more dominating because Airbus has all their attention resources on getting the A380 to market.

Boeing knew from experience that they were going to be tied up resource wise for quite a few years in this development. The 747 development of the 1960's almost put Boeing out of business and the payoff didn't occur until decades later. That is why they focused on the 787 program which is turning out to be a huge success already by showing airlines that the big transport and hub system are not the way of the future. Airbus has recognized this however they do not have the resources to start development on another new aircraft. All they can do is possibly stretch an existing plane to meet a target market but it won't have the efficiency that a new design will give.


"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer

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