UPS Evaluating A380 Order
 

Good article on the MSNBC busness section website on UPS evaluating its A380 order. Article is dated 10/20.....UPS according to the article is evaulating all of its' options, including purchase/lease of Boeing wide bodies.

The A380 program is in serious trouble, the word is out that Airbus will have to sell around 420 aircraft just to break even. As of October, the company only has around 150 firm orders.

I heard we're now evaluating converted -400's and more factory new -400's.

Mark my words, the A380 program will go down as the biggest flop in commercial aircraft industry. Airbus now says it needs to sell 420 in order to break even? They'll be lucky to sell 250.

Heard in IND AOC early this am that 777F's were done deal here at FDX. VERY unreliable source...:)

I have been preaching how the A380 would be a flop for years now. Airbus has slightly over 160 firm orders, but 43 of those orders come from one airline (Emirates). They are the key. If Emirates dumps its order, the A380 program will be dead. Done. Stick a fork in it. Also, a cancellation of their order by any of the numerous airlines that are "considering all options" could lead to a domino effect that will cause many airlines to follow suit.

UPS NEEDS the lift in a bad way. Any delay in the 380, which has already happend, will have a negative impact on UPS. I would expect for them to look elsewhere for the needed lift. Look at it this way, it was a good way to get out of the A-300 deliveries.

Except now we really need that lift. Once again a bean counter makes a decision without regard to the future growth and expansion that everyone saw coming.

As I understand it UPS tried to regain those A300's but were told they were no longer available :( Go figure :rolleyes:

Yes, they stopped producing the 300 so go figure. You are right though, UPS seems to be day late and well, not a dollar short.

Risky business
 

I don't think FedEx or UPS will cancel its A380 orders partly because the other also has an order. Both managements have got to consider the implications of dumping there freighter slots and having the competition pick them up. Its a high wire act that (I suspect) neither company will risk.

The Fat Bastard will be a license to print money in the express package business.

No way is one company going to let the other have it by themselves.

#220,000 direct MEM - Guangzhou - Imagine how many MD-11's that will replace every leg.....

Don't you mean #220,000 direct Guangzhou-MEM? I don't think the US is making anything that the Chinese need that badly. :(