UPS Ditches Airbus Order

UPS's abandonment of the aircraft was inevitable once FedEx(FDX Quote) bailed out last year, said aviation consultant Scott Hamilton, who publishes an online newsletter about aircraft makers.

Hamilton said the move benefits Airbus, which could save as much as $1 billion by not having to design, build and certify the freighter at a time when it needs capital.

"Now they can devote the resources that would be devoted to cargo planes to the passenger model, and they may divert some of those resources to the A350, which is a far more important airplane," he said.