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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 atm on 3/2/2007 3:01:20 PM , Rating: 2
Its sad to see such a collosal failure. I look forward to their next effort. Hopefully they'll be able to deliver.


RE: Subsidies
By dever on 3/3/2007 10:49:15 AM , Rating: 1
Actually, the educational value should not be under estimated. It's temporarily sad for those whose livelyhood are directly affected.

However, the longer term result should be a better perspective of why free markets are superior than those artificially controlled. What a great lesson this is for all of the wanna-be socialists. Even with tax dollars stolen from individuals to prop up a government influenced industry, it still could not compete with companies operating in a more open market.

Fortunately for the rest of the world, they can only control their own markets. And, in the long run, we will all benefit from the purely economic decisions of companies like UPS in the way of lower prices.


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