UPS Cancels A380

[767pilot]

UPS to Cancel A380 Order

Airbus photo. Click to enlarge


UPS corporate new release
ATLANTA, March 2, 2007 – UPS today announced its intent to cancel later this year an order for 10 Airbus A380 freighters.
The final cancellation decision will be formally presented to Airbus on the first date specified under an agreement reached last week that gives either party the right to terminate the order.
Last week's agreement specified a revised delivery schedule that delayed UPS's first A380 jumbo freighter from 2010 to 2012. UPS originally expected its first freighter in 2009.
UPS had intended to complete an internal study of whether it could wait until 2012 for the aircraft, but now understands Airbus is diverting employees from the A380 freighter program to work on the passenger version of the plane.
"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 Airlines. "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." UPS, which celebrates its 100th anniversary in 2007, is the world's largest package delivery company and a global leader in supply chain services, offering an extensive range of options for synchronizing the movement of goods, information and funds. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. UPS's stock trades on the New York Stock Exchange (UPS) and the company can be found on the Web at UPS.com. To get UPS news direct, visit pressroom.ups.com/RSS.

 

[LarryinTN]

So, with what will they be replaced? 777's like FDX?

Any speculation on if there might be any increased difficulties in gaining operating approvals in European countries because of this?

 

[767pilot]

No telling.
We've bought plenty of European products, the Rolls Royce Tays for the 727's and the A-300's and I don't know that it ever helped us, so I'm not too sure that this will hurt us. Not really sure who pulled the plug on this deal first, us or them. I'm pretty sure both sides are relieved for now

 

[B-atch]

B747-800 BABY.....I understand that Boeing is courting UPS, and will probably secure a large order for the new freighter.

 

[TheBaron]

B747-800 BABY.....I understand that Boeing is courting UPS, and will probably secure a large order for the new freighter.

Alright Shirley...for the last time, it is a -8 not a -800.

 

[AV80R]

777s & 747-8s?!

Lets hope for 777s & 747-8s ! (see below - highlighted in red)


Bloomberg Linky



UPS to Cancel Order for 10 Airbus A380 Freighters (Update5)
By Mary Schlangenstein
March 2 (Bloomberg) -- United Parcel Service Inc., the last remaining customer for the troubled Airbus SAS A380 freighter, said it will scrap its $2.8 billion order for 10 of the superjumbo jets later this year.
UPS concluded that Airbus couldn't meet a new delivery schedule after the planemaker's surprise decision yesterday to indefinitely delay the A380 cargo model and focus on the passenger version, UPS spokesman Mark Giuffre said today.
UPS, the world's largest package shipper, now must decide how soon it needs new jets as global trade expands and space tightens on aircraft production lines. Atlanta-based UPS wants more cargo on each plane into China and other Asian countries where flights are limited.
``It's a rational business decision on both parties' part,'' said Jim Corridore, a Standard & Poor's analyst in New York. ``Airbus makes a lot more money from its passenger planes than its freighters. They need to fix that business. UPS needs to find a partner that's going to work with them.''

UPS, the biggest cargo-plane customer for Airbus rival Boeing Co., may announce an order for 15 Boeing 777s and 15 747- 800s in four to six weeks, said Ned Laird, managing director of Seattle-based consulting firm Air Cargo Management Group.

``They have been talking about a potential replacement for the A380 with Boeing for the last year,'' Laird said. Deliveries would begin in the last half of 2010, he said.
UPS declined to discuss any plans for buying new planes. It now flies Boeing MD-11s and 747s to China and is adding more of both aircraft types to its fleet this year and next. The A380 is the world's largest commercial jet.
Airbus Response
``Airbus is disappointed that UPS intends to cancel the A380 freighter order,'' said Justin Dubon, an Airbus spokesman in Toulouse, France. ``We respect the airline's decision, and this is consistent with the agreement we reached last week.''
Airbus, the world's biggest maker of commercial aircraft, was at least two years behind schedule in deliveries of the A380 freighter, prompting other customers to void their orders or switch to the passenger version.
Shares of UPS fell 65 cents to $69.47 at 4:02 p.m. in New York Stock Exchange composite trading, while Boeing shares dropped 82 cents to $87.03. Shares of Airbus parent European Aeronautic Defence and Space Co. declined 99 cents, or 4 percent, to 23.63 euros in Paris.
UPS will give Airbus a formal cancellation letter later this year, on the first date allowed under the agreement reached by the companies last week, Giuffre said in an interview. He declined to provide the date.
Stanching Losses
Airbus's decision yesterday to delay the freighter was intended to help stanch losses that may reach 4.8 billion euros ($6.3 billion) by 2010. Airbus plans to cut 10,000 jobs over four years and sell or find partners for six factories due to A380-related costs.
The company estimated on Feb. 7 that the entire A380 program had cost $19 billion, including development funding and late-delivery penalties. Airbus reaffirmed its intention to stick with the jet last week when it announced the new UPS delivery schedule, and the company's decision yesterday to delay the freighter caught UPS by surprise, Giuffre said.
`Good for Airbus'
``It's actually good for Airbus, as it means one less distraction,'' said Doug McVitie, managing director of Arran Aerospace, a Dinan, France-based consulting firm. ``Not having to work on the freighter for now allows them to focus all their attention on existing customers for the passenger version.''
No airlines have canceled orders for the passenger model, although Virgin Atlantic Airways Ltd. has deferred its six-plane order and others want compensation from Airbus for delays.
Airbus now has 156 orders for the passenger version of the A380, spread among 14 customers.
``The prospects for an A380 freighter ever being built are remote,'' said Douglas Runte, an analyst with RBS Greenwich Capital in Greenwich, Connecticut. ``The freighter has been rejected by one cargo carrier after another.''
UPS is adding 15 MD-11s and 10 747-400s to its fleet this year and next, spokesman Norman Black said. Last month, the company ordered 27 Boeing 767-300ER freighters valued at as much as $3.89 billion. UPS said those planes will be used for shorter routes and weren't intended to replace the A380s.
UPS was left as the sole customer for the freighter after FedEx Corp. dropped its 10-aircraft order in November, and International Lease Finance Corp., the world's largest plane lessor, switched its order for five freighters to passenger versions of the A380 a month later.
Other Options
FedEx, the largest cargo airline, ordered 15 Boeing 777 freighters with a list value of as much as $3.6 billion to replace the A380s. It was the biggest order ever for the twin- engine Boeing jets, which will be delivered beginning in 2009.
UPS had planned to decide the future of its A380 order after analyzing the revised delivery schedule proposed by Airbus last week, Giuffre said in an interview. Airbus pushed deliveries to 2012 through 2013 from the original 2009 to 2012 schedule.
The order had been in question since October, when Airbus first told UPS its initial delivery would be moved from the later part of 2009 to May 2010.
``Investors will be happy that the worry about this issue is now over,'' said S&P's Corridore, who has a ``buy'' rating on UPS shares. ``To the extent this worry was hanging over the stock, it's gone now.''
To contact the reporter on this story: Mary Schlangenstein in Dallas at [email protected]

 

[V2plus25]

What's the difference between the -400 and -800 (or -8)? It is just newer avionics or also a bigger body or more container positions or what?

 

[airgator]

What's the difference between the -400 and -800 (or -8)? It is just newer avionics or also a bigger body or more container positions or what?

From the Boeing website:

The 747-8 Freighter offers a range of 8,275 km (4,475 nmi) and has 16 percent more cargo volume than the 747-400, which allows it to hold seven additional pallets with the same nose-door loading capability, industry-standard 3 m (10-ft)-high pallets and real-world cargo density capability at 158 kg/cu m or 9.8 lb/cu ft.
The new SkyLoft area on the upper deck of the 747-8 Intercontinental gives operators the choice between additional main-deck seats or the opportunity to create a unique passenger experience through personal suites, a lounge or a business center.
Both airplanes represent a new benchmark in fuel efficiency and noise reduction, allowing airlines to lower fuel costs and fly into more airports at more times of the day.
The 747-8 Intercontinental is 15 percent more fuel efficient than the 747-400, 10 percent more fuel efficient than the A380, and offers guaranteed QC2 departures.
With a maximum structural payload capacity of 140 tonnes (154 tons) the 747-8 Freighter offers 16 percent more revenue cargo volume than the 747-400F with slightly greater range. The additional 121 cu m (4,225 cu ft) of volume means the airplane can accommodate four additional main-deck pallets and three additional lower-hold pallets. The 747-8 Freighter enables operators to choose between carrying greater revenue payload -- up to an additional 20 tonnes (22 tons) -- or flying up to 1,400 nmi farther in markets where cargo density requirements are lower. The airplane upholds its predecessor's legendary efficiency, with nearly equivalent trip costs and 14 percent lower ton-mile costs than the 747-400F. In fact, the 747-8 Freighter will enjoy the lowest ton-mile costs of any freighter, giving operators unmatched profit potential.
Compared one-on-one, the 747-8 Freighter has no competitors. The 747-8 Freighter's empty weight is 82 tonnes (90 tons) lighter than the A380 freighter. This results in a 24 percent lower fuel burn per ton, which translates into 20 percent lower trip costs and 23 percent lower ton-mile costs than the A380F.

 

[TheBaron]

What's the difference between the -400 and -800 (or -8)? It is just newer avionics or also a bigger body or more container positions or what?

Also from the Boeing web site:

The Boeing 747-8 Family: A Proud Tradition of Value Continues


The Boeing 747-8 Intercontinental and 747-8 Freighter are the new high-capacity 747s that offer airlines the lowest operating costs and best economics of any large passenger or freighter airplane.
This latest family of the 747 jetliners meets airline requirements for a passenger airplane that serves the 400- to 500-seat market between the 555-seat Airbus A380 and the 365-seat Boeing 777-300 Extended Range airplanes, and a freighter that continues the leadership of the 747 Freighter family in the world cargo market.
Boeing launched the airplane on November 14, 2005, with firm orders for 18 747-8 Freighters; 10 from Cargolux of Luxembourg and eight from Nippon Cargo Airlines -- NCA -- of Japan. The combined list price value of the orders is approximately $5 billion.
Boeing had been studying the market feasibility of a new 747 for some time, working with operators to establish their requirements for an incrementally larger 747 to continue the profitability of current 747 fleets. By working together with customers and applying the innovative new technologies of the 787 Dreamliner, Boeing was able to create the 747-8 family. In fact, the designation 747-8 was chosen to show the technology connection between the 787 and the new 747.
Cargolux will add the first 747-8 Freighter to its all-Boeing fleet of 747 freighters in third-quarter 2009, followed by NCA in fourth-quarter 2009.
Both the passenger and freighter versions of the 747-8 will allow operators to maximize their profitability. Seat-mile costs for the 747-8 Intercontinental are 10 percent lower than the 747-400, with nearly equivalent trip costs. The 747-8 Intercontinental is more than 10 percent lighter per seat than the A380, and consumes 10 percent less fuel per passenger. That translates into a trip-cost reduction of 19 percent and a seat-mile cost reduction of more than 3 percent compared to the A380.
The 747-8 is the only large airplane that fits today's airport infrastructure, giving airlines the flexibility to fly to more destinations. The 747-8 will build on the current 747's capability to fly into most airports worldwide, using the same pilot type ratings, services and most ground support equipment. With a range of 14,815 km (8,000 nmi), the 747-8 Intercontinental can connect nearly any major city pair in the world.
The 747-8 family provides new revenue opportunities that will allow airlines to maximize profits. For example, the passenger airplane has 51 additional seats to accommodate 467 passengers in a typical three-class configuration and also offers 28 percent more cargo volume. The 747-8 Freighter offers a range of 8,275 km (4,475 nmi) and has 16 percent more cargo volume than the 747-400, which allows it to hold seven additional pallets with the same nose-door loading capability, industry-standard 3 m (10-ft)-high pallets and real-world cargo density capability at 158 kg/cu m or 9.8 lb/cu ft.
The new SkyLoft area on the upper deck of the 747-8 Intercontinental gives operators the choice between additional main-deck seats or the opportunity to create a unique passenger experience through personal suites, a lounge or a business center.
Both airplanes represent a new benchmark in fuel efficiency and noise reduction, allowing airlines to lower fuel costs and fly into more airports at more times of the day.
The 747-8 Intercontinental is 15 percent more fuel efficient than the 747-400, 10 percent more fuel efficient than the A380, and offers guaranteed QC2 departures.
With a maximum structural payload capacity of 140 tonnes (154 tons) the 747-8 Freighter offers 16 percent more revenue cargo volume than the 747-400F with slightly greater range. The additional 121 cu m (4,225 cu ft) of volume means the airplane can accommodate four additional main-deck pallets and three additional lower-hold pallets. The 747-8 Freighter enables operators to choose between carrying greater revenue payload -- up to an additional 20 tonnes (22 tons) -- or flying up to 1,400 nmi farther in markets where cargo density requirements are lower. The airplane upholds its predecessor's legendary efficiency, with nearly equivalent trip costs and 14 percent lower ton-mile costs than the 747-400F. In fact, the 747-8 Freighter will enjoy the lowest ton-mile costs of any freighter, giving operators unmatched profit potential.
Compared one-on-one, the 747-8 Freighter has no competitors. The 747-8 Freighter's empty weight is 82 tonnes (90 tons) lighter than the A380 freighter. This results in a 24 percent lower fuel burn per ton, which translates into 20 percent lower trip costs and 23 percent lower ton-mile costs than the A380F.
The 747-8 is the right size for the large airplane market, lowering risk for airlines in a highly variable operating environment.

 

[TheBaron]

Lets hope for 777s & 747-8s ! (see below - highlighted in red)


Bloomberg Linky



UPS, the biggest cargo-plane customer for Airbus rival Boeing Co., may announce an order for 15 Boeing 777s and 15 747- 800s in four to six weeks, said Ned Laird, managing director of Seattle-based consulting firm Air Cargo Management Group.

To contact the reporter on this story: Mary Schlangenstein in Dallas at [email protected]

It's amazing that these aviation consultants and reporters, so called experts, don't take the time to visit the Boeing web site and see that there is no such animal as the 747-800.