UPS confirms A380 order cancellation; not confident Airbus can meet new deadline

UPS confirms A380 order cancellation; not confident Airbus can meet new deadline

	Published : Fri, 02 Mar 2007 15:58 By : Agencies Print this Story

PARIS (AFX) - United Parcel Service Inc confirmed it is to cancel its order for 10 A380 super-jumbo freighter jets from EADS unit Airbus, explaining that it is 'no longer confident' Airbus can meet a new delivery deadline agreed just last week.

Last week, the two groups modified the order contract to allow either party to terminate the purchase order later this year, and last night Airbus announced it has decided to freeze development of the freight version of the A380.

'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,' UPS said in a statement.

It did not specify what date this is.

UPS had originally expected delivery of its first freighter in 2009 and said last week's agreement specified an earliest delivery date of 2012.

The group said it had initially 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.'

'We no longer are confident that Airbus can adhere to (the) schedule,' UPS said.

Airbus last night said it will continue to seek new clients for the freight version of the A380 despite the decision to mothball development.

'We are not stopping the programme, we are suspending development, but are carrying on looking for clients,' a spokesman said.

At one point Airbus had three clients for the aircraft, but UPS rival FedEx Corp cancelled an order for 10 units after the A380 programme was hit by delays last summer and leasing group ILFC converted its five-plane order to passenger versions.

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