UPS mulls A380 freighter cancellation

Published 9:00 pm Thursday, February 22, 2007

This week, UPS bought itself more time to decide if it wants to cancel an order for 10 Airbus A380 freighters. The shipping carrier signed an agreement with the European plane maker revising delivery dates for the delayed superjumbo jet. But that doesn’t mean UPS can’t scrap the order altogether.

The new arrangement shouldn’t be seen as an A380 vote of confidence from UPS.

Airbus was supposed to deliver the first freighter to UPS in 2009 but has pushed back deliveries of its superjumbo jet two years on average. The Toulouse, France-based company is forking over penalties for its tardiness, though officials declined to confirm whether the newly signed agreement included such a fee.

Keep in mind, however, that UPS’s order is the only remaining one for the freighter version of the A380. FedEx already cancelled its freighter order, and International Lease Finance Corp. converted its request for freighters to one for passenger jets.

It seems likely that Airbus offered a price concession, but even that hasn’t pacified UPS.