UPS makes major order with Boeing

UPS says the order follows strong growth in its global business

US delivery firm UPS has made a multi-billion dollar order to buy 27 freight aircraft from Boeing.

UPS did not reveal how much it would pay for the wide-body 767-300ER jets, although at full list prices the order could be worth up to $4bn (£2.1bn).

UPS is currently reviewing an order for 10 specially adapted A380 superjumbos from Boeing's European rival Airbus.

US delivery firm Fedex last year ditched an order for Airbus A380 planes in the wake of delays to the project.

Airbus woes

Production setbacks have resulted in two-year delays to deliveries of the first A380 passenger jets, with a cargo version of the giant plane not expected until 2010.

UPS said its new order for Boeing aircraft was "not related to UPS's ongoing review of its order for 10 Airbus A380 freighters".

Analysts have warned that development of a cargo version of the A380 would be unviable for Airbus should UPS cancel its order.

UPS said its order for 27 Boeing 767s would help the firm keep up with strong growth in its international business.

Although the deal is worth about $4bn at Boeing's catalogue prices, carriers rarely pay full price for large orders.