Carriers re-evaluating orders for A380s on news of more delays
By Staff -- Purchasing, 11/16/2006 2:00:00 AM
Airbus announced another delay to its A380 super jumbo air freighter on Oct. 4 due to wiring problems, causing a host of airlines to consider their plans with Airbus going forward. Airbus CEO Christian Streiff, only three months into his tenure, left the company shortly after the announcement.
UPS says it is re-evaluating its decision to spend $2.5 billion with Airbus for 10 A380s, now two years behind schedule. Dubai's Emirates airline has 43 A380s on order worth $13 billion and is reviewing its order. UPS says the latest delay would push back its first A380 delivery to May 2010 from September 2009, which prompted the company to create a team to evaluate its options in this area.
“This is an open-ended evaluation that rules out nothing,” UPS spokesman Norman Black said. There is no deadline for the team, made up of people from UPS international operations, to report its conclusions, he added.
Recently, British aircraft-engine maker Rolls-Royce said it's suspending production of engines for the A380 for about 12 months because of delays in the project.
The French government is helping Airbus pay its suppliers impacted by the delays by extending bridge loans.
DHL to buy 49% in Polar Air
DHL has agreed to buy 49% of U.S.-based Polar Air Cargo in an effort to beef up its trans-Pacific air capabilities. The deal will link DHL's existing U.S. and Asian parcel markets more effectively. As part of its $150 million investment in Polar, DHL will receive guaranteed air capacity over the Pacific. The deal is dependent on regulatory approval, which may be tricky since DHL's parent company Deutsche Post is partially owned by the German government.
Air freight volume declines
According to statistics from the Bureau of Transportation Statistics, total U.S. air freight shipments declined 1.5% in the year ended July 2006. This year saw 22.2 billion lbs of mail and freight carried on the U.S. airlines, down from 22.6 billion in the previous year.
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