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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Relief to Airbus
By timmiser on 3/2/2007 9:32:42 PM , Rating: 2
This may actually be a relief to Airbus. Now that the last freighter customer has left, they can cancel the freighter program and divert more resources to the A380 passenger.

RE: Relief to Airbus
By Whiskey06 on 3/3/2007 12:26:08 AM , Rating: 2
They'll make better freighters than people movers though. If you've ever unassed from a 747 imagine waiting to get off and get your bags after an A380 trip. On the freight side that's a plus, but on the human side, it's a negative.

RE: Relief to Airbus
By timmiser on 3/6/2007 3:26:03 AM , Rating: 2
That is an excellent observation. The anarchy that exists today in baggage claim of a packed 747 is nuts. I can't image what it would like of a packed A380.

There is no question that someday there will be a time for the A380F but for now, Airbus needs to focus on getting that passenger plane to market.

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