Posted on 12/19/2006 8:58:23 AM PST by lowbuck
Airbus is waiting to hear whether United Parcel Service (UPS) wants to continue with its order for 10 A380 Freighters before deciding whether to pursue early development of the all-cargo variant.
The express package carrier is now the sole remaining A380F customer, following International Lease Finance's (ILFC) decision to switch its five orders to the passenger variant under a renegotiated deal that has seen all its A380 deliveries pushed back to 2013 and beyond.
Airbus says that, under the revised A380 production plan, certification of the A380F is scheduled for the fourth quarter of 2009, in line with UPS's original delivery plan for the aircraft.
UPS has held talks with Airbus about the order but, according to industry sources, is also evaluating the Boeing 747-8F and 777F - the latter being the aircraft to which FedEx Express recently switched after cancelling its A380 order.
Should UPS cancel its order, Airbus may opt to shelve A380F development
Should UPS decide to cancel its order - and, according to Airbus chief operating officer John Leahy, A380 customers have that right - it will leave Airbus with no orders for the freighter. This could prompt it to shelve development of the aircraft to focus on more pressing issues, such as sorting out the passenger programme.
Leahy says the airframer has told UPS: "If you want the A380F, we'll build it for you." UPS tells Flight International: "At this point, we are still planning to purchase the aircraft."
Leahy confirmed the ILFC freighter revamp earlier this month as part of the delivery deferral. "ILFC had the right to switch its five freighters to the passenger version and it has exercised that right."
Before the original production delays last year, ILFC's A380s were scheduled for delivery from 2007. The lessor had announced the placement of two passenger A380s to Emirates, and Leahy says Airbus is now in talks with the airline about it taking those two A380s directly.
Production of the first A380F structural components, such as fuselage panels, wing and centre wing box, has begun, and 50% of the required structural design drawings have been released. At its peak, Airbus had accumulated 27 orders for the A380F from Emirates (two), FedEx (10), ILFC (five) and UPS (10).
How novel. I think I smell capitalism ;-)
Amen, provided that the European subsidies to Airbus are taken into account. Foreign government undermining of critical U.S. corporations should not be tolerated.
Another message to UPS.
You guys have a pretty good seat at the table.
You might be able to get a good deal.
If you say no the company will fold the airplane is a pretty strong position to negotiate with.
I don't think that will happen, for the simple reason that the costs are already sunk into the program. The only way to recoup even some of the costs is to start shipping the blasted thing to their awaiting customers.
Mind you, I'm not saying they're going to turn a profit on the A380 - it's just that they can only climb higher in their hole by filling orders.
wouldn't the cancellation of the freighter version of the A380 actually make it easier on airbus?
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