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 KaiserCSS on 3/2/2007 1:58:48 PM , Rating: 0
Every piece of news about that company for the longest time has been horrible.

Did anybody else automatically think about Sony? Is it a bad sign if I automatically thought that?

Man, that's odd...

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?

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