Another Blow to the A380

**Ari707** · 01-22-2007, 11:13 AM

UPS may cancel Airbus A380 order
Package delivery firm expected to terminate remaining order of 10 planes, leaving Airbus without an order for the embattled superjumbo, paper says.
January 19 2007: 7:33 AM EST

PARIS (Reuters) -- Airbus could soon be without a single order for the freighter version of its troubled A380 superjumbo, a market the planemaker only recently said held demand for 400 planes.

French newspaper Les Echos reported Friday that package delivery firm United Parcel Service Inc. (Charts) is expected to cancel the only remaining order - for 10 of the planes - next week. It did not identify its sources for the story.

Asked Wednesday whether UPS was poised to dump the plane, top Airbus salesman John Leahy said, "They are deciding that as we speak."

Friday, a spokeswoman for Airbus, when asked about the newspaper report said, "I have no information along that line."

Airbus this week revealed its 2006 overall orders total, which fell behind arch rival Boeing Co. (Charts) for the first time since 2000.

The numbers revealed Airbus' weakness in freighters, as Boeing took orders for 81 while Airbus won none.

This July, Airbus plans to deliver the last of its only freighter model, the 35-year-old A300/A310, while the company has announced plans to build a freight version of the A330-200.

Tom Williams, executive vice president for Airbus programs, said Thursday that whatever happened, the planemaker would not entirely end its development work on a freighter version of the A380.

Stepping stone
Analysts say the project is a stepping stone to offering a stretched version of the A380 airliner, which could seat 1,000 passengers.

Airbus could announce it will await better times for it to produce a cargo version, Les Echos said.

UPS rival FedEx Corp. (Charts) cancelled an order for 10 A380 freighters, citing delays that have put the project two years behind schedule.

It bought Boeing's 777 freighter instead.

Two other firms - airline Emirates and aircraft lessor International Lease Finance Corp. - have converted A380 freighter orders to passenger versions.

Wiring installation problems have delayed deliveries of the double-decker, with the first now due for delivery in late 2007 to Singapore Airlines.

The project Wednesday prompted the third profit warning in less than a year from Airbus parent firm EADS.

Airbus' long-term market forecast issued just two months ago called for demand for more than 400 very large freighters by 2025.

If the A380 freighter is shelved, its hopes will be pinned in the interim on the smaller A330-200F twin-engine freighter due in the second half of 2009.

Shares in EADS were down 0.5 percent at 23.94 euros versus Paris' CAC-40 which was off 0.4 percent as of 4:35 a.m. ET.

Malaysia on Thursday lifted the threat of canceling an order for six A380 airliners for national carrier Malaysian Airline System Bhd.

**SWABoeing737** · 01-22-2007, 04:03 PM

I am now convinced that Airbus did not make a good choice when they decided to start the A380. An A350 would compete better with Boeing's 787 and if they had gone ahead with that project, they might not be in such bad shape.

**nwafan20** · 01-22-2007, 06:02 PM

Hey, SWAB! What's up?

A serous blow to the A380F program, no customers. Airbus is in trouble here!

**Winglets747** · 01-22-2007, 06:30 PM

Originally Posted by SWABoeing737

I am now convinced that Airbus did not make a good choice when they decided to start the A380.

Was the 787 even in 7E7 stage when the A380 was launched? :?

Originally Posted by SWABoeing737

An A350 would compete better with Boeing's 787 and if they had gone ahead with that project, they might not be in such bad shape.

They're trying to go ahead with the A350, but the problem there is that they did not take the 787 seriously enough in the beginning. I remember reading an article in Airliners shortly after ANA's mega 50-frame order that quoted an Airbus rep saying they were not concerned with a 787-like plane.

-Will

**PhilDernerJr** · 01-22-2007, 06:34 PM

When you're the only one in the world with a particular aircraft type, odds are the program will end early and the cost of maintenence and parts will go way up and render the type useless for profitability.

Not to mention that Airbus is teh geigh.

Smart move by UPS.

**nwafan20** · 01-22-2007, 06:44 PM

"Teh geigh"??? Phil, English please!!! ;) What does that mean anyway?

I agree, Airbus just needed to look at the Concorde to learn the lesson that has a high probability of happening with the A380. Or, just look at why MD didn't go ahead with the MD-12 and Boeing didn't go ahead with their large plane design.

**T-Bird76** · 01-22-2007, 06:54 PM

So I wonder if UPS will go back to their original A300 order or go with Boeing. Airbus let them out of their A300 contract for the A380 order.

**SWABoeing737** · 01-22-2007, 06:55 PM

Was the 787 even in 7E7 stage when the A380 was launched?

Yes, I believe it was still in the talks.

They're trying to go ahead with the A350, but the problem there is that they did not take the 787 seriously enough in the beginning. I remember reading an article in Airliners shortly after ANA's mega 50-frame order that quoted an Airbus rep saying they were not concerned with a 787-like plane.

Let's see, reasonable sized 777 sibling, or the double decker blue whale of a plane.... Hmmmm..... Difficult choice....

**nwafan20** · 01-22-2007, 07:01 PM

The A350 is a joke! A330 with 787 wings...

http://youtube.com/watch?v=bCv-F763Xc0

**Nonstop2AUH** · 01-22-2007, 07:20 PM

Recent problems aside (and almost every all-new aircraft has some), I think the A380 has a shot at being successful in the niche market of transporting large amounts of passengers and goods between the booming economies of Asia and the Indian subcontinent. If you look at the flows of people and cargo being created by globalization, specifically those outside of North America, you will realize why operators like Emirates and Singapore are still interested in this sort of aircraft.

Despite the earlier hype, it's never really been about having a duty free shop or sauna or whatever Airbus and SRB promoted to get media attention, those are the modern day version of the 747's short-lived upper deck lounge. The truth is that the A380 is a massive people mover, and in that role may yet prove to be very efficient.

**PhilDernerJr** · 01-22-2007, 07:41 PM

Originally Posted by Nonstop2AUH

Recent problems aside (and almost every all-new aircraft has some), I think the A380 has a shot at being successful in the niche market of transporting large amounts of passengers and goods between the booming economies of Asia and the Indian subcontinent.

I think most would agree that it's the only place that the aircraft can do well.

I do think that the idea is a little bit before its time. As the world population grows, aircraft with this capacity will be necessary, albeit not for at least 50 years I'd guess. But by then, of course, technology will be vey different, and aircraft will being flying faster thorugh the edges of space and hopefully using alternative fuels.

**moose135** · 01-22-2007, 07:43 PM

Originally Posted by Phil D.

But by then, of course, technology will be vey different, and aircraft will being flying faster thorugh the edges of space and hopefully using alternative fuels.

"Beam me up, Scotty" :D

**Winglets747** · 01-22-2007, 07:51 PM

Originally Posted by nwafan20

The A350 is a joke! A330 with 787 wings...

http://youtube.com/watch?v=bCv-F763Xc0

Now that is good! :lol: :P

**T-Bird76** · 01-22-2007, 07:58 PM

UPS denied a French newspaper report that it plans to cancel its order for 10 A380Fs this week. The cargo carrier is the last customer for the freighter version of the aircraft. Rival FedEx cancelled its order for 10 A380Fs in November and placed an order for 15 777Fs with 15 options instead, saying that market demands were too pressing to wait for Airbus to work through production issues (ATWOnline, Nov. 8, 2006). Les Echos reported last week that UPS will drop the order, but the company moved quickly Friday to clarify that no decision has been made and that it continues to talk with Airbus regarding a revised delivery schedule.

Doesn't look like its happening..