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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 JS on 3/4/2007 11:25:16 AM , Rating: 2
As far as I know the 35 hour work week is only standard in France, and I believe 40 hours and up is the norm in the rest of the EU.


RE: Subsidies
By alifbaa on 3/4/2007 8:17:50 PM , Rating: 4
Incorrect. 36 hours is about the average throughout Europe. England leads with 38. France is the worst at 33, and trending downwards. To make matters worse, most European countries have pretty massive mandatory leave policies and "bank holidays" once a month. In France, workers are mandated to have 45 days of paid leave every year regardless of experience. If a bank holiday falls on a Tuesday or Thursday, the government will extend that holiday to Monday or Friday, making that work week only 3 days long. Thus, for the price of 3 days' leave, you can get a week long vacation. In the end, the typical French worker will only work about 10 months out of the year. As if that wasn't unproductive enough, social security laws allow workers to retire in their mid 50's, which provides a huge disincentive to the economy's most experienced and knowledgeable workers to continue contributing in spite of still having decade's worth of remaining productivity left.

And that's how you can blame a "simple" wiring delay on labor policies.


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