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Air One Inked Deal On Up To 90 A320 Jan. 12 2006  
User currently offlineOyKIE From Norway, joined Jan 2006, 2717 posts, RR: 4
Posted (8 years 6 months 1 week 6 days 8 hours ago) and read 3345 times:

This decision has been known for a while, but now they have signed the contract.

ATWOnline

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.

Http://www.atwonline.com/news/story.html?storyID=3699


Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
8 replies: All unread, jump to last
 
User currently offlineCO7e7 From United States of America, joined Dec 2004, 2848 posts, RR: 2
Reply 1, posted (8 years 6 months 1 week 6 days 8 hours ago) and read 3339 times:

Quoting OyKIE (Thread starter):
by signing a contract with Airbus for 30 A320s and 60 options

What does 60 options mean ?


User currently offlineOyKIE From Norway, joined Jan 2006, 2717 posts, RR: 4
Reply 2, posted (8 years 6 months 1 week 6 days 8 hours ago) and read 3329 times:

Quoting CO7e7 (Reply 1):
What does 60 options mean ?

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
User currently offlineCO7e7 From United States of America, joined Dec 2004, 2848 posts, RR: 2
Reply 3, posted (8 years 6 months 1 week 6 days 8 hours ago) and read 3319 times:

Quoting OyKIE (Reply 2):
I am not sure if they have to pay for the options.

That's what I wasn't sure about..

Thanks for the explanation though..


User currently offlineScbriml From United Kingdom, joined Jul 2003, 12380 posts, RR: 47
Reply 4, posted (8 years 6 months 1 week 6 days 8 hours ago) and read 3314 times:
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Quoting CO7e7 (Reply 1):
What does 60 options mean ?

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, but fruit flies like a banana!
User currently offlineAstuteman From United Kingdom, joined Jan 2005, 9976 posts, RR: 96
Reply 5, posted (8 years 6 months 1 week 6 days 8 hours ago) and read 3314 times:
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AirOne boss expects to exercise options this year on top of the firm orders just placed.

http://news.bbc.co.uk/1/hi/business/4607942.stm

"Mr Toto said Air One would exercise 10 of its options for additional A320s as early as this year".

Also reported in Reuters + Bloomberg
A


User currently offlineCO7e7 From United States of America, joined Dec 2004, 2848 posts, RR: 2
Reply 6, posted (8 years 6 months 1 week 6 days 8 hours ago) and read 3297 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).

Great explanation.. Thank you very much..  thumbsup 


User currently offlineOyKIE From Norway, joined Jan 2006, 2717 posts, RR: 4
Reply 7, posted (8 years 6 months 1 week 6 days 8 hours ago) and read 3255 times:

Quoting Astuteman (Reply 5):
Mr Toto said Air One would exercise 10 of its options for additional A320s as early as this year".

Also reported in Reuters + Bloomberg
A

This is great news. Lets hope the orders keeps coming this year.  Smile



Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
User currently offlineScbriml From United Kingdom, joined Jul 2003, 12380 posts, RR: 47
Reply 8, posted (8 years 6 months 1 week 6 days 7 hours ago) and read 3207 times:
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It's on Airbus's web site now:
http://www.airbus.com/en/presscentre...es_items/01_12_06_A320_AirOne.html



Time flies like an arrow, but fruit flies like a banana!
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