UPS Order For 14 Boeing 747 Freighters Might Once Have Been For Airbus A380
Michael Goldstein
Michael Goldstein
Contributor
Logistics & Transportation
https://www.forbes.com/sites/michaelgoldstein/2018/02/07/ups-order-for-14-boeing-747-freighters-might-once-have-been-for-airbus-a380/#73a09715433eUnited Parcel Service (UPS) just ordered 14 more Boeing 747 freighter aircraft, announcing the deal on Feb. 1, the 30th anniversary of the founding of UPS Airlines. The new 747s, pegged at a list price of $5.65 billion, join 14 747s ordered by UPS in 2016. The company cites continued growth in its air freight business and positive effects of the recent U.S. tax overhaul as the main drivers for the big buy. Airbus, which once offered an A380 freighter variant, could only watch.
UPS and Boeing are responding to the whopping 9% rise in freight demand in 2017. Meanwhile, air freight capacity (“lift”) rose only 3%, according to the International Air Transport Association, which predicts another 4.5% growth in 2018. David Abney, UPS chairman and CEO of UPS, said, “UPS's International segment has produced four consecutive quarters of double-digit export shipment growth.”
With all this demand, much of it driven by insatiable consumerism for everything from food to phones, the heavy lift capability of the 747 freighters is key. UPS, for example, typically flies its 747-800s on high-traffic routes to Asian cities. The big jets connect in Alaska to UPS' primary hub in Louisville and to other hubs in Philadelphia; Rockford, Illinois and Ontario, California.
Ironically, while only cargo keeps the 747 production line open, the superjumbo passengers prefer, the A380, was once supposed to be the queen of air freighters as well.
< Edited >
In 2005, UPS had ordered 10 A380Fs with an option for another ten. But four months after FedEx canceled its order, UPS did the same in 2007, also cites the two-year delay, adding “it decided to cancel after it learned Airbus was diverting employees from the freighter program to work on its passenger plane program.” The UPS “freighter freeze” proved the end for the A380 freighter program, although the diverted resources helped in the rollout of the successful passenger version.
< Edited >