Thursday, March 1, 2007

UPDATED: 1:58 PM
A380 freighter work suspended
The Associated Press

Financially troubled European airplane maker Airbus has stopped work on the freight version of its new A380 superjumbo so it can focus more on the troubled passenger version of the aircraft, a spokesman for its parent company said today.

''The work on the freight version of the A380 has just been temporarily cut off ... so that all capacities can be directed at the A380 passenger version,'' said Michael Hauger, spokesman for the European Aeronautic Defence & Space Co.

UPS is the last remaining customer the freighter and last week announced an agreement with Airbus that would allow either side to cancel the 10-jet order. The two sides also formalized a later delivery date for the first jet.

UPS originally ordered the 10 jets in January 2005, with options to buy 10 more in a deal valued at roughly $2.8 billion at list prices.

Airbus spokeswoman Ann de Crozals said the decision to postpone work on the A380F came after the UPS decision.

''Following the rescheduling with UPS, development work on the A380F has been interrupted but the program is still ongoing,'' de Crozals said. ''It's not a decision to stop the program.''

There is a new development schedule for the freight version A380F, Hauger said, adding that the company believes there is a sales potential for 400 models of the A380 freight aircraft in the next 20 years.

Toulouse, France-based Airbus is struggling to survive the crippling fallout from a two-year delay to the A380 and the weaker U.S. dollar _ in which the planes are priced.

De Crozals said no date had been set for work to resume on the freight version of the aircraft.

FedEx Corp. canceled its order for 10 A380s in November, saying Airbus's production problems were threatening its international expansion plans. Instead, it ordered 15 Boeing 777 freighters and options for 15 more in a deal valued at about US$3.5 billion at list prices.