Wednesday, November 8, 2006

Reactions to FedEx's A380 cancelation

After FedEx's decision yesterday (see previous blog post) to cancel its A380 orders because of prolonged delays on Airbus' part, there have not been any other cancellations by other airlines ordering the A380 - as of yet.

Singapore Airlines, which will be the first airline to put the A380 into service, says that it has no plans whatsoever to scrap its order, although it will get its first A380 in October of 2007 instead of December of this year, as originally planned. The airline said that it won't be affected greatly by the delay because it's taking delivery of six Boeing 777-300ERs this month.

FedEx rival UPS, which has ten A380s on order (as well as options on another ten) said that the company isn't rushing to make a decision about whether to cancel its orders or not. "We are not pressed to make a decision," said Chief Executive Officer Mike Eskew. "Our backs are not against the wall on this issue." UPS says that it has enough planes scheduled for delivery in the next few years to avoid any problem.

Airbus company EADS also reported its first quarterly loss in three years earlier today.

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