Airbus losing remaining A380 cargo order

Airbus losing remaining A380 cargo order

Source Link: news.yahoo.com

PARIS - Airbus was left with an empty order book for the cargo version of its much-delayed superjumbo plane after UPS Inc. said Friday it would cancel its order for 10 A380s.The move comes just a week after UPS, the world's largest shipping carrier, and Airbus announced a revised agreement that gave either party the right to terminate the order.

In a statement, Atlanta-based UPS said it decided to cancel after it learned Airbus was diverting employees from the freighter program to work on its passenger plane program.

UPS said the final cancellation decision will be formally presented to Airbus on the first date specified under last week's agreement.

"We lost confidence in their ability to meet those schedules," UPS spokesman Mark Giuffre said of the A380F agreement with Airbus.

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Well this is bad news for Airbus but great for Boeing. I would much rather see boeing get the deal for 747's anyway.

Im a bit surprised. Last weeks AWST talked about UPS and Airbus in talks about the order. What may have really happened was that UPS tried to bargain down the price of the aircraft and they reached an impass. This may be a move to put pressure on AIrbus and the deal could always be revived.


The press release from the UPS site
UPS to Cancel A380 Order

Ill bet UPS will order some 777F's or the A330F and some 748-8F. The A380 did make sence for them esp since they carry paletized cargo.

Originally posted by FredT

Ill bet UPS will order some 777F's or the A330F and some 748-8F. The A380 did make sence for them esp since they carry paletized cargo.

Forgive my ignorance but doesn't the 747 carry palletized cargo? I think it does but I could be wrong.

Originally posted by MooneyBravo
Forgive my ignorance but doesn't the 747 carry palletized cargo? I think it does but I could be wrong.

Yes it does but the A380 carries more than the 747-8F. The 747's big advantage is that its nose comes off and it can load outsized cargo which UPS does not need.