UPS has renegotiated its contract for later delivery dates but with a cancellation clause allowing them to void the contract if there are more delays.
http://news.bbc.co.uk/2/hi/business/6390269.stm
UPS has renegotiated its A380F contract
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UPS has renegotiated its A380F contract
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smokejumper
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Zenfookpower
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smokejumper
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Purchasing.com reports that UPS has agreed to a contract that delays delivery of the A380; in return, Airbus can cancel the program if it feels it to be necessary. Where does this leave the A380 freighter? I see an orphan on the horizon.
See:
http://www.purchasing.com/article/CA6419045.html
See:
http://www.purchasing.com/article/CA6419045.html
Maybe temporarily cancelled.. and as said before the A380F shares the same structure as the A380stretch and the A380-800 with more range.. so it isn't that bad..smokejumper wrote:Purchasing.com reports that UPS has agreed to a contract that delays delivery of the A380; in return, Airbus can cancel the program if it feels it to be necessary. Where does this leave the A380 freighter? I see an orphan on the horizon.
See:
http://www.purchasing.com/article/CA6419045.html
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smokejumper
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And another one.
http://seattlepi.nwsource.com/business/ ... ups24.html
My take on this is, why would UPS let Airbus off the hook?
UPS has cancelled and gotten compensation (it has to be cash, they do not use any Airbus in their fleet).
Airbus gets to pretend the program is still alive. After all, Cathay Pacific is a hot customer for the freighter program (according to that ever reliable source J. Leahy, despite the fact that CP is loath to take any new aircraft, let alone one as pie in the sky as the A380F.)
Now, when does UPS announce it has 747-8s on order? The 10 747-400Fs they have on order leaves them a shortfall in total lift capacity (compared to the firm A380 orders, let alone the options).
Freighter is gone……..
Chance the A380 program will ever make any money, zip as well. When you have to give airplanes away to keep selling the model, you are on that proverbial slippery slope.
And if anyone thinks this is harsh, remember that the program was sold on the basis of the freighter program, AND that they would be able to get the big bucks that Boeing got for the 747. As none of that has happened or is true, that means the business justification is also wrong.
If you accept that they will sell 150 aircraft every 6 years, that means 18 years before they reach the break even point. That’s a financial disaster.
http://seattlepi.nwsource.com/business/ ... ups24.html
My take on this is, why would UPS let Airbus off the hook?
UPS has cancelled and gotten compensation (it has to be cash, they do not use any Airbus in their fleet).
Airbus gets to pretend the program is still alive. After all, Cathay Pacific is a hot customer for the freighter program (according to that ever reliable source J. Leahy, despite the fact that CP is loath to take any new aircraft, let alone one as pie in the sky as the A380F.)
Now, when does UPS announce it has 747-8s on order? The 10 747-400Fs they have on order leaves them a shortfall in total lift capacity (compared to the firm A380 orders, let alone the options).
Freighter is gone……..
Chance the A380 program will ever make any money, zip as well. When you have to give airplanes away to keep selling the model, you are on that proverbial slippery slope.
And if anyone thinks this is harsh, remember that the program was sold on the basis of the freighter program, AND that they would be able to get the big bucks that Boeing got for the 747. As none of that has happened or is true, that means the business justification is also wrong.
If you accept that they will sell 150 aircraft every 6 years, that means 18 years before they reach the break even point. That’s a financial disaster.
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Zenfookpower
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I think RC20 made a fair analysis (from his point of view..) I respect that and fail to understand you translating this in "hate" ..achace wrote:RC20, your slip is showing again.
Gee you must hate Airbus and particularly the 53 A300 aircraft operated by UPS.
Cheers
Achace
Why not responding with a counter argument instead of these "cheap" flaming shots..
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smokejumper
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Frankly, I find all of RC-20's postings to be well thought out, insightful and logical. Further, I enjoy reading them and do not find any real bias. We all have our favorites.
Most recently, Aribus has triped-up big time and, after listening to Leahy's boorish boasts for the past several years, have left themselves open for comment and speculation. In fact, we can only speculate as to Airbus' future plans. After 2 years, they have yet to define the A330 replacement. First it was the A330 Improved, then the A350, then the A350XWB (each with a number of iterations).
Keep writing RC-20!
Most recently, Aribus has triped-up big time and, after listening to Leahy's boorish boasts for the past several years, have left themselves open for comment and speculation. In fact, we can only speculate as to Airbus' future plans. After 2 years, they have yet to define the A330 replacement. First it was the A330 Improved, then the A350, then the A350XWB (each with a number of iterations).
Keep writing RC-20!
Sorry if my warped English humour upset anyone with my little dig at RC20.
My view is that there is a fairly good deep seated relationship between UPS and Airbus.
I think they are the single biggest operator of the A300 in USA, and it was a feature of their 380F contract that UPS was allowed to cancel the balance of their A300 order in exchange for buying the 380F.
That this event was probably the trigger for the eventual closure of the A300 production line must have been anticipated, and may very well have had an impact on the terms of the 380F deal.
That sort of deal could only occur with goodwill on both sides in my humble opinion.
Perhaps cancellation could be more difficult than everyone appears to believe.
Cheers
Achace
My view is that there is a fairly good deep seated relationship between UPS and Airbus.
I think they are the single biggest operator of the A300 in USA, and it was a feature of their 380F contract that UPS was allowed to cancel the balance of their A300 order in exchange for buying the 380F.
That this event was probably the trigger for the eventual closure of the A300 production line must have been anticipated, and may very well have had an impact on the terms of the 380F deal.
That sort of deal could only occur with goodwill on both sides in my humble opinion.
Perhaps cancellation could be more difficult than everyone appears to believe.
Cheers
Achace