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US Airways Drops Delta Bid January 31, 2007

Posted by Andrew in Commercial Aviation, Delta, US Airways.
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When US Airways announced an offer to takeover Delta, the move left many in the industry scratching their heads. After increasing the buyout price several times to no avail, US Airways today conceded defeat . US Airways CEO Doug Parker vented his frustration to the media, quipping that the Delta creditors knew “exactly what they needed to do”, but concluded that because the Delta creditor’s committee was not being responsive to the deal and impending deadline, his company was “not willing to pursue this transaction anymore.” In an attempt to shift the focus away from the failed deal, he emphasized his airline’s need to move forward on its own. The mood at Atlanta based Delta took on a more celebratory tone on the news of the retraction of the US Airways bid. Delta’s CEO gleefully commented to the press: “this is a proud day for the thousands of Delta people, customers, communities, civic leaders and others who stood up for our standalone plan and said, emphatically, ‘Keep Delta My Delta.”

Sources: USATODAY, Yahoo Financial News

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UPS Airbus A380 Cancellation Imminent January 19, 2007

Posted by Andrew in Commercial Aviation.
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According to French business daily paper Les Echos, United Parcel Services (UPS) plans to cancel its order for Airbus A380 aircraft as early as next week. An Airbus representative would neither confirm or deny the rumor, only stating that Airbus “had no information at the time.” Such a cancellation would mirror the moves of the A380 freighter program’s other clients, cargo carrier Fedex and airplane leasing company ILFC, both of whom have cancelled their orders in the recent months. Fedex elected to purchase Boeing 777 freighter aircraft instead. Some analysts believe that UPS may simply renegotiate the deal with Airbus, electing to purchase the recently launched A330 freighter variant instead of the much larger A380 aircraft. Despite reliable reports, doubt remains on both the future of the UPS deal and the A380 freighter. UPS spokesman Mark Giuffre commented on the rumors, saying that they “were still evaluating all [their] options.” If United Parcel Service does cancel its A380 order, it will be the death blow to the freighter version of Airbus’ flagship aircraft.

Sources: Atlanta Business Chronicle, Flight Global

Airbus Wins Indian Orders for A330 Freighter January 16, 2007

Posted by Andrew in Airbus, Boeing.
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India’s Flyington Freighters announced yesterday that it would purchase six A330 freighter aircraft from Airbus at a deal valued at near one billion dollars. The deal lends credibility to the recently launched A330F, the latest freighter offering from Airbus. In a press release, Airbus noted that Flyington Freighters signed a deal with Boeing last year for freighters as well. That deal may be in jeopardy, as a Flyington representative would only confirm that the deal is in place for the moment. Delivery from both airplane manufacturers is scheduled to begin in 2009. Flyington Freighters expects to begin flying within a few months, launching with leased aircraft. So far, according to list prices, the freight carrier has signed orders valued at around two billion dollars. Boeing and Airbus are targeting India, trying to “make up for slack demand for aircraft from traditional carriers in the United States and parts of Europe.”

Source: Reuters