OyKIE From Norway, joined Jan 2006, 2811 posts, RR: 4 Posted (10 years 1 month 9 hours ago) and read 4360 times:
This decision has been known for a while, but now they have signed the contract.
Italy's Air One, which operates an all-737 fleet to 23 domestic destinations, repositioned itself as a European player yesterday by signing a contract with Airbus for 30 A320s and 60 options.The deal reportedly is worth $1.8 billion at list prices. The CFM56-5B6/P-powered aircraft will be configured in a two-class layout seating 159 and gradually will replace the carrier's leased fleet of 21 737-400s, six dash 300s and three dash 200s.
Options mean they have slots available for 60 additional aircraft in the factory line. They will be getting 30 aircrafts for sure, but later on they can take 60 more aircrafts. But they can choose not to.
I am not sure if they have to pay for the options.
Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
When an airline buys some planes they often take options on additional ones. Typically the options are valid for a number of years and would normally guarantee that the airline would pay the same price even if they take up the options several years after the original purchase. I believe a small deposit is normally required to purchase the option at the time of the original purchase.
For a small incremental cost, the airline gets a guaranteed price on some future purchases as well as a place (slots) in the production line (rather than going to the back of the queue if they purchased from fresh the second time).
It is a very common practice.
Time flies like an arrow. Fruit flies like a banana!
CO7e7 From United States of America, joined Dec 2004, 2860 posts, RR: 2
Reply 6, posted (10 years 1 month 8 hours ago) and read 4312 times:
Quoting Scbriml (Reply 4): For a small incremental cost, the airline gets a guaranteed price on some future purchases as well as a place (slots) in the production line (rather than going to the back of the queue if they purchased from fresh the second time).