UPS fleet modernisation to feature either A380 or 747X

Paul Lewis/WASHINGTON DC

United Parcel Service (UPS) expects to move to a more modern fleet of four baseline aircraft types over the next decade, including possibly either the Airbus A380 or Boeing 747X ultra large capacity freighter, if the operating economics work.

"If international business continues to grow-the 747X or A380 could make sense for us on certain continental services such as between North America and Asia, and Europe and Asia," says Bob Lekites, UPS vice president airline operations. A major factor in this is the asking price for either the A380 or 747X aircraft.

Lekites adds that at "$230-250 million per aircraft, it simply does not work for us as you can't get enough packages in. We would have to negotiate a price significantly less." While it is unclear what price UPS' main rival FedEx negotiated for the A380-800F, Singapore Airlines is understood to have secured up to a 48% discount, getting its 25 aircraft, including options, for as little as $140 million each with engines.

Airbus' offer price to UPS is understood to have been a little higher than SIA's. The Louisville-based parcel carrier has conversion rights to take the A380 or other freighter Airbus types as part of its recently announced $6 billion order for 60 more smaller A300-600 freighters and options on 50 more aircraft (Flight International, 16-22 January). In the interim, UPS plans to use two dry-leased converted 747-200Fs on its recently awarded routes to Beijing and Shanghai, due to start in April. The carrier is working on the assumption that stricter international regulations on noise and emissions will force it to retire its fleet of 16 747-100/200s within the decade, as well as, in the end, its 49 McDonnell Douglas DC-8-71/73s, though some have considerable life left.

In their place UPS has ordered 13 converted MD-11Fs from Boeing, comprising three ex-VASP aircraft, the first of which is being converted by SASCO, the remaining 10 being traded in by Japan Airlines. UPS holds options on another 22, but Lekites concedes that with the dwindling number of MD-11 passenger aircraft available for conversion it will have to operate a mixed fleet of General Electric CF6 and Pratt & Whitney PW4000 powered jets.

UPS plans to use the initial A300s to replace its domestic fleet of 727s over the next three years and free up 757-200PFs to be transferred to Europe to replace 727s there as well in Latin America. These will then be backfilled by A300s as the international market grows. The last of its 61 727-100/200s are expected to go within the decade, leaving UPS with a fleet of 757/767, A300, MD-11 fleet and a new large freighter.

Source: Flight International