UPS to cancel order for 10 Airbus A380s

<p>UPS Inc., the world's largest shipping carrier, said Friday it will cancel later this year its order for 10 Airbus A380 freighters, following delivery delays that have hampered the aircraft maker.</p><p>The news follows a previous decision by Memphis, Tenn.-based FedEx Corp. to cancel its order of A380s.</p><p>Atlanta-based UPS said the final cancellation decision will be formally presented to Airbus on the first date specified under an agreement reached last week that gives either party the right to terminate the order.</p><p>Last weeks agreement specified a revised delivery schedule that delayed UPS first A380 jumbo freighter from 2010 to 2012. UPS originally expected its first freighter in 2009.</p><p>UPS said it had intended to complete an internal study of whether it could wait until 2012 for the aircraft, but now understands Airbus is diverting employees from the A380 freighter program to work on the passenger version of the plane.</p><p>"Based on our previous discussions, we had felt that 2012 was a reasonable estimate of when Airbus could supply this plane," David Abney, UPS chief operating officer and president of UPS Airline, said in a statement. "We no longer are confident that Airbus can adhere to that schedule."</p>

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