Says Order Not Related To Review Of A380 Order

At least one US airline's growth means new orders for jet manufacturers. UPS Monday announced an order for 27 new Boeing 767-300ER freighters to support its growing package delivery business.

The company expects to take delivery of the aircraft between 2009 and 2012. Although UPS declined to divulge financial details, the deal is worth between $3.8 and $4.2 billion at list prices.

UPS says it's experiencing continued strong growth in its international package business, with average export volume climbing 12 percent in 2006 alone. The company says the wide-body 767's can be used on routes to and from Europe and Latin America as well as on lanes within Asia and Europe. The airline hinted some of the 27 new freighters will eventually replace some of its aging aircraft.

"The Boeing 767-300ER freighter already is part of our current air fleet and we know from experience what a great workhorse it is," said Bob Lekites, UPS Vice President for Airline and International Operations. "It's also a good answer to our fleet management needs because it provides great flexibility, fast time in transit and sound cost performance. In addition, we already have the pilot training, ground support and maintenance systems in place, making for a seamless integration."

UPS took delivery of its first Boeing 767-300ER freighter in 1995. Powered by General Electric jet engines, the plane can carry 24 containers on its upper deck, plus seven below. It has a maximum payload of 132,200 pounds and a range of 3,000 nautical miles.

"This is a great aircraft for the long-term needs of our company," noted David Abney, UPS's chief operating officer and president of UPS Airlines. "It will support our global growth; it meets the strictest noise and emission standards in the U.S. and Europe, and each one will have state-of-the-art navigation and collision avoidance systems that will serve us for years to come."

UPS was quick to point out this latest order from Boeing is not related to its on-going review of an order for 10 Airbus A380 freighters. The carrier says the A380s on order are to fulfill a need on specific long-haul routes currently serviced by B-747 and MD-11 freighters.

Airbus' A380 superjumbo is now two years behind schedule, and as ANN reported, media sources worldwide say UPS is leaning toward canceling with Airbus. Following rival box hauler Federal Express' cancellation of its A380 freighter order in November last year, opting instead for Boeing's 777, UPS remains the only Airbus customer with freighter versions of the mammoth airplane on order.

FMI: www.ups.com, www.boeing.com, www.fedex.com