Connect and get the inside scoop on Airline Companies

Welcome to Airline Pilot Forums - Connect and get the inside scoop on Airline Companies

If this is your first visit, be sure to check out the FAQ. Join our community today and start interacting with existing members. Registration is fast, simple and absolutely free.


User Tag List

Post Reply
 
Thread Tools Search this Thread Display Modes
Old 03-02-2007, 11:14 AM   #1  
Gets Weekends Off
Thread Starter
 
Joined APC: Nov 2005
Posts: 397
Default Possible 777 and 748 order from UPS?

http://www.bloomberg.com/apps/news?p...raw&refer=home

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 67 cents to $69.45 at 2:28 p.m. in New York Stock Exchange composite trading, while Boeing shares dropped 35 cents to $87.50. 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.

``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.

UPS's Growth

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]

Last Updated: March 2, 2007 14:31 EST
Soyathink is offline  
Old 03-02-2007, 11:47 AM   #2  
Gets Weekends Off
 
Brown Cow's Avatar
 
Joined APC: Mar 2005
Position: MD11
Posts: 137
Default

"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."

Where does this info come from? How do people get this?
Brown Cow is offline  
Old 03-02-2007, 11:51 AM   #3  
With The Resistance
 
jungle's Avatar
 
Joined APC: Jan 2006
Position: Burning the Agitprop of the Apparat
Posts: 6,055
Default

Quote:
Originally Posted by Brown Cow View Post
"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."

Where does this info come from? How do people get this?

Humint, sources and methods are not disclosed. Sounds like a safe bet though.




HUMINT, a syllabic abbreviation of the words HUMan INTelligence, is a category of intelligence gathering disciplines that encompasses all gathering of intelligence by means of interpersonal contact. NATO defines HUMINT as "A category of intelligence derived from information collected and provided by human sources." (AAP-6 (2004) - NATO GLOSSARY OF TERMS AND DEFINITIONS [1]).

Contrary to what some people think, most HUMINT activity does not involve clandestine or covert activities. The manner in which HUMINT operations are conducted is dictated by both official protocol and the nature of the source, who may be witting, unwitting, neutral, friendly or hostile. Examples of HUMINT sources include, but are not limited to, the following:

Friendly forces (Military police, patrols, etc);
Prisoners of War (POW) or detainees;
Refugees;
Civilians;
Non-governmental organizations (NGOs);
Media personnel/organizations;
Covert/clandestine agents; and
"Walk-ins." A walk-in refers to someone who approaches a friendly agency and volunteers to provide information on his/her own freewill.

Last edited by jungle; 03-02-2007 at 11:59 AM.
jungle is offline  
Old 03-02-2007, 12:00 PM   #4  
Gets Weekends Off
 
Joined APC: May 2006
Position: DC-8 756/767
Posts: 943
Default

well, I will give you one guess who will be the last group to find out about any aircraft orders.
UPSFO4LIFE is offline  
Old 03-02-2007, 12:08 PM   #5  
Gets Weekends Off
Thread Starter
 
Joined APC: Nov 2005
Posts: 397
Default

Quote:
Originally Posted by UPSFO4LIFE View Post
well, I will give you one guess who will be the last group to find out about any aircraft orders.
Ask the rampers, they know everything
Soyathink is offline  
Old 03-02-2007, 12:15 PM   #6  
Gets Weekends Off
 
Joined APC: May 2006
Posts: 748
Default

Quote:
Originally Posted by Brown Cow View Post
"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."

Where does this info come from? How do people get this?
Anybody want to ask him?

http://www.cargofacts.com/consulting...ntprofiles.htm
Our Professional Staff

Edwin C Laird ([email protected])
Mr. Laird has more than 37 years of experience related to the airline industry. He began his career in 1966 with Seaboard World Airlines where he held the position of District Manager-Midwest. Mr. Laird later held management positions in the cargo sales departments at Swissair and Overseas National Airways where he gained expertise in U.S. and international airline operations and cargo market requirements. In 1974 he left ONA to become a manager in the Air Freight Systems Development department at Boeing. In that capacity Mr. Laird was responsible for sales campaigns for the 747-200 freighter, and he worked on container systems development for main deck and lower deck applications.

Mr. Laird left Boeing in 1978 and founded Air Cargo Management Group to provide consulting services to the air freight and express industry which had just undergone deregulation in the U.S. Mr. Laird has directed ACMG's efforts during the past 29 years, and as Managing Director, he is actively involved in all phases of the company's operation.

Mr. Laird attended Boston University where he earned a Bachelor of Science degree in Business Administration specializing in International Finance.
Precontact is offline  
Old 03-02-2007, 12:15 PM   #7  
Gets Weekends Off
Thread Starter
 
Joined APC: Nov 2005
Posts: 397
Default

You know something is wrong when Air Frenchy is the launch customer for the 777F and had no interest in the A380
Soyathink is offline  
Old 03-02-2007, 12:32 PM   #8  
Gets Weekends Off
Thread Starter
 
Joined APC: Nov 2005
Posts: 397
Talking This just in

PARIS (AP) --
Airbus Industries just announced the termination of their CEO Louis Gallois. EADS Board of Directors have hand picked Gallois replacement as Jerry Lewis. Manfred Bischoff of Eads stated that We welcome Mr. Lewis with open arms. In trying times we have faced with our A380 program we need a true leader who can lift our spirits. Jerry lewis commented that Airbus Industries and EADS will be absorbed in the "Jerry's Kids" program. This will benifit Airbus Industries and get them back on track.
Soyathink is offline  
Old 03-02-2007, 12:33 PM   #9  
With The Resistance
 
jungle's Avatar
 
Joined APC: Jan 2006
Position: Burning the Agitprop of the Apparat
Posts: 6,055
Default

Quote:
Originally Posted by Precontact View Post
Anybody want to ask him?

http://www.cargofacts.com/consulting...ntprofiles.htm
Our Professional Staff

Edwin C Laird ([email protected])
Mr. Laird has more than 37 years of experience related to the airline industry. He began his career in 1966 with Seaboard World Airlines where he held the position of District Manager-Midwest. Mr. Laird later held management positions in the cargo sales departments at Swissair and Overseas National Airways where he gained expertise in U.S. and international airline operations and cargo market requirements. In 1974 he left ONA to become a manager in the Air Freight Systems Development department at Boeing. In that capacity Mr. Laird was responsible for sales campaigns for the 747-200 freighter, and he worked on container systems development for main deck and lower deck applications.

Mr. Laird left Boeing in 1978 and founded Air Cargo Management Group to provide consulting services to the air freight and express industry which had just undergone deregulation in the U.S. Mr. Laird has directed ACMG's efforts during the past 29 years, and as Managing Director, he is actively involved in all phases of the company's operation.

Mr. Laird attended Boston University where he earned a Bachelor of Science degree in Business Administration specializing in International Finance.

Does "Mr. Laird declined comment." sound familiar?
jungle is offline  
Old 03-02-2007, 12:35 PM   #10  
Gets Weekends Off
 
Joined APC: May 2006
Posts: 748
Default

Gotta keep those sources hidden...
Precontact is offline  
 
 
 

 
Post Reply
 



Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes



All times are GMT -8. The time now is 09:08 PM.