Latest Update in the Greatest Business Rivalry on Earth

UPS appears to have negotiated some flexibility to walk away from the cargo version of Airbus's A380 if Airbus screws up production again. It would seem that Airbus has one last chance to keep UPS in the fold. What seems odd is that the article refers to Airbus having the right to cancel UPS's order too. Why would Airbus want to cancel on UPS? My only guess is that they would need the UPS fuselages to meet a passenger carrier order. The situation can't be good if it comes to that - Airbus would be all but abandoning the cargo market. But I could be wrong.

Also in the news, BA added a few more triple 777s. This is not a big deal or a big surprise, but just further shows the strength on the 777 product. A few years hence, the 777 and 787 Dreamliner could be a one-two product punch that will be extremely hard to beat. The state of the global economy 3-5 years hence will be a critical factor. Although a downturn wouldn't be easy on Airbus, a global slowdown would enable the European maker to catch up with Boeing's product line in order to compete for the next cycle of orders. However if global growth remains robust over the next 5 years, Boeing will be able to just keep running with their lead intact.

All previous Boeing vs. Airbus posts here.