UPS cancels order as Airbus suspends A380 freighter development

UPS cancels order as Airbus suspends A380 freighter development UPS has cancelled its order for 10 A380 freighters from Airbus after the troubled European aircraft manufacturer announced it is suspending production on the cargo version of the “super-jumbo” to focus on the passenger plane.
   Airbus is cutting 10,000 jobs to try and return losses related to the delays to the A380 project, but said it would resume development of the freighter version in the future and anticipates sales of 400 over the next two decades.
   Last week, Atlanta-based UPS reached agreement with Airbus to reschedule the delivery dates of its order from 2010 to 2012. UPS originally expected its first freighter in 2009. The revised agreement also gave either party the right to cancel the order anytime in 2007.
   'Based on our previous discussions, we had felt that 2012 was a reasonable estimate of when Airbus could supply this plane,' said David Abney, UPS’s chief operating officer and president of UPS Airline. “We no longer are confident that Airbus can adhere to that schedule. UPS has built one of the largest airlines in the world in order to ensure reliable service to our customers, and we’re confident we have the resources to continue doing so in the future.”
   In November, FedEx cancelled its order for 10 of the A380Fs, replacing it with an order for 15 Boeing 777 freighters with options for 15 more.