UPS cancels superjumbo
UPS’s withdrawal as the last customer for the misbegotten Airbus freighter was all but inevitable for some time, but the breakup between the aircraft manufacturer and the world’s second-largest cargo airline marked an unusually messy end to a freighter purchase agreement.
The muddy ending was rivaled only by the A380 program itself, a project that has fallen far behind schedule.
Passenger airlines have been clamoring for penalty payments and freighter customers dropped their orders as Airbus has undergone a massive management overhaul in the aftermath.
Freighter cancellations by FedEx Express, which became the first in and the first out on the Airbus sales sheet for A380 freighters, Emirates and International Lease Finance Corp. had left UPS as the only cargo customer for the massive new aircraft.
UPS and Airbus seemingly had set the stage in late February for an amicable parting. They announced a redrawn purchase agreement that allowed either side to end the sale under a preset timetable.
But on Feb. 28, Airbus disclosed a restructuring plan in which it will lay off 10,000 employees. And a day later Airbus pulled its workers off the freighter assembly line to work on passenger versions of the plane, an action UPS officials did not learn about directly from the manufacturer.
UPS now is focused on adding the capacity the company believes it will need in the international arena in coming years.
