Stitch From United States of America, joined Jul 2005, 33449 posts, RR: 85
Reply 1, posted (9 years 1 month 3 weeks 4 hours ago) and read 5121 times:
At $50 million a plane, that is a factor of 10 to 20 of what we are hearing is being paid to other carriers.
Either China Southern paid list for these birds, or Airbus is deeply afraid that China may choose the 748I and 773ER for their domestic large aircraft needs to show their displeasure at not having the A380 along with the 787* at the Olympics and is willing to risk taking a loss on each frame to keep China a customer.
* - I seem to recall that at least one Chinese carrier will have at least one 787-8 in time for the Olympics, but I could be mistaken.
Manni From South Korea, joined Nov 2001, 4221 posts, RR: 22
Reply 2, posted (9 years 1 month 2 weeks 6 days 23 hours ago) and read 4979 times:
The title of the topic is incorrect. In the article you linked is written that Airbus and CZ declined to comment, there's also written 'China Southern is LIKELY...'.
What apparently has happened is that CZ has made a claim for US$250 million. That does absolutely not mean they will get such a ridiculously high compensation. They could claim US$500 million. Does that mean they'll get them?
PolymerPlane From United States of America, joined May 2006, 991 posts, RR: 3
Reply 9, posted (9 years 1 month 2 weeks 4 days 13 hours ago) and read 4535 times:
Quoting Manni (Reply 5): Apparently CZ has denied the report.
Not to nitpick Manni, but CZ did not deny the report. What they denied was authorizing anybody to such story. I know it's not 100% certain, but just like when EADS/Airbus denied that its CEO submitted a letter of resignation, but It actually happened. Journalists have a lot of other sources beside corporate public release.
Quote: The CSA published an announcement Friday saying it has never authorized the release of such information.
The CSA published an announcement Friday saying it has never authorized the release of such information.
You can read into it that the information should not have been released and is correct, or that the information is incorrect and it was certainly not CZ who has spread this incorrect information and has not given the authority to spread any information regarding compensations whatsoever.
More from the article,
"We will actively deal with and evaluate the issue," said the announcement, stressing that the delayed delivery will not have a serious impact on the company's business operation and financial results.
No serious impact on financial results and operation... Claiming US$250 million would be a bit much.
The original topic has been deleted, so I'll repeat what I wrote there.
If CZ does indeed has the right to claim US$250 million it is probably because they payed a price well above the average price being payed for an A380. Perhaps as close as 85% to 90% of the listprice.
CZ only ordered their A380s in 2005 but was supposed to recieve them well before many other airlines who placed their orders well before CZ did. This might have resulted in getting a less than average discount.
US$50 million for each aircraft would result in an additional 15% on top of the initial 10 to 15% discount. CZ would nicely fit in with an industry average of around 30%.
Airbus would earn less on what could have been a very lucrative contract, but would still be able to make a nice sum of money (A380s are said to be produced at around 40% of the listprice, not sure if engines are included).
N328KF From United States of America, joined May 2004, 6606 posts, RR: 3
Reply 14, posted (9 years 1 month 2 weeks 3 days 10 hours ago) and read 4146 times:
Quoting Manni (Reply 13): If CZ does indeed has the right to claim US$250 million it is probably because they payed a price well above the average price being payed for an A380. Perhaps as close as 85% to 90% of the listprice.
You could say that; However, CZ made it clear that they wanted A380s in time for the Olympics. With everybody else, it's a serious problem to have their A380s delayed, but because all A380 customers are delayed, it puts them at an equal disadvantage. With CZ, not having it in time for an entire nation's premier event of the decade causes serious prestige problems. Anyone familiar with Chinese diplomacy knows this is not something that makes them very happy.
When they call the roll in the Senate, the Senators do not know whether to answer 'Present' or 'Not guilty.' T.Roosevelt