UPS Gives Airbus A $5 Billion Nod By Ron Wilbur, Managing Editor UPS provided the biggest order news of the day as they became a first-time Airbus buyer, ordering 60 A300F4-600R freighters for delivery beginning in 2000. The order has been widely expected for the last several months and culminates a two-year process by the package carrier to investigate widebody aircraft. The value of the order is estimated at $5 billion, based on list prices. Engines haven't been selected yet. UPS vice president of airline operations Bob Lekites told reporters that the carrier was initially looking at converting used passenger aircraft to cargo service, an increasingly popular route employed by rival Federal Express. After considering DC-10s and other likely conversion candidates the decision was made to go with new aircraft. One obvious freighter choice, the MD-11, was not considered, according to Lekites. The Airbus models were selected while looking at a 30-year calculation for results. UPS currently flies an all-Boeing fleet of 214 aircraft, including 747, 757, 767 and DC-8s. The new Airbus freighters were purchased for use on U.S. domestic routes, but could eventually be shifted to European routes later. In fact, Lekites pointed to the carrier's intentions to expand in Europe as he presented reasons for the selection of Airbus. Despite recent high-profile advances, Airbus CEO Noel Forgeard acknowledged that the U.S. market still proved tough. "We are just thrilled to announce the deal and thrilled to have UPS as a customer," said Forgeard, pointing out the significant size of UPS as a U.S. carrier. The aircraft that Airbus will deliver to UPS will differ in several respects from previous versions of this model. It will feature a rigid cargo barrier instead of a cargo net restraint, installed farther forward, that will provide an additional cargo position. Airbus will also enlarge the rear, lower-lobe cargo door to accommodate the use of LD-9 cargo containers in the aft, lower cargo hold. Together, these improvements will increase the aircraft's capacity to 22 containers on the upper deck and seven containers in the lower cargo compartments. Previous versions of the aircraft accommodate one fewer container on the upper deck and three fewer in the lower cargo holds. Overall, the A300F4-600R will carry 109,600 pounds of cargo over a range of 1,900-2,500 nautical miles. UPS has also been thought to be considering interim aircraft to bridge their current demand with the lag in getting new aircraft in service. Lekites commented that UPS is buying the new freighters to meet forecasted demand and does not expect any need to lease interim aircraft to overcome a shortfall in capacity.