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What Happens To Planes On Order If Airline Closes?  
User currently offlineAviationAddict From United States of America, joined Feb 2006, 614 posts, RR: 0
Posted (8 years 5 months 2 days 15 hours ago) and read 4218 times:
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Sorry about the misleading heading, I couldn't think of a better way to ask my question in such a small space, but anyways...

What happens to an aircraft manufacturer if an airline shuts down which had planes on order from said manufacturer? For example, if NW was to close, what would happen to Boeing and the 787s NW had on order? Would Boeing be compensated at all, or is it just tough luck? Now, that may not be the best example because I don't think NW has actually paid for the planes yet, but for the sake of argument let's just say they have!

3 replies: All unread, jump to last
 
User currently offlineUA777222 From United States of America, joined Dec 2003, 3348 posts, RR: 11
Reply 1, posted (8 years 5 months 2 days 13 hours ago) and read 4160 times:

It is my understanding that prior to the closure of the airline all delivery slots currently assumed by the airline will try to be sold to add what profit it can to the struggling airline. I'm a little shy when it comes to the handling of the order after the airline closes it's doors but I'm sure it's the same concept. That the order slots will be sold to other airlines.

My  twocents 

Matt



"It wasn't raining when Noah built the ark."
User currently offlinePanHAM From Germany, joined May 2005, 9170 posts, RR: 29
Reply 2, posted (8 years 5 months 2 days 11 hours ago) and read 4099 times:

The deposits which the airline made will go to the manufacturer to cover for the costs they had. The manufacturer will have to find new clients for the airplanes which may be relatively easy on products like the 787.

Planes build already go "all white" into storage until a buyer is found.

[Edited 2006-03-02 10:57:33]


E's passed on! That parrot is no more! He has ceased to be! E's expired and gone to meet 'is maker!
User currently offlineShenzhen From United States of America, joined Jun 2003, 1710 posts, RR: 2
Reply 3, posted (8 years 5 months 2 days 10 hours ago) and read 4054 times:

Quoting UA777222 (Reply 1):
It is my understanding that prior to the closure of the airline all delivery slots currently assumed by the airline will try to be sold to add what profit it can to the struggling airline. I'm a little shy when it comes to the handling of the order after the airline closes it's doors but I'm sure it's the same concept. That the order slots will be sold to other airlines.

An airline only owns/controls an airplane after the money, in full, is transfered to the manufacturer (which happens at time of delivery). A contract between an airline and a manufacturer isn't transferable.


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