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LOT Said To Not Exercise Options For 787's..  
User currently offlineBeaucaire From Syria, joined Sep 2003, 5252 posts, RR: 25
Posted (6 years 3 months 2 weeks 5 days 15 hours ago) and read 6292 times:

The French financial site "Boursorama"reports that LOT might not exercise ten options paid to Boeing for being short of cash.
The airline will nevertheless maintain deliveries of eight aircraft ordered firmly.

https://www.boursorama.com/infos/actualites/detail_actu_marches.phtml?&news=5843199


Please respect animals - don't eat them...
14 replies: All unread, jump to last
 
User currently offlineDw9115 From United States of America, joined Dec 2005, 449 posts, RR: 2
Reply 1, posted (6 years 3 months 2 weeks 5 days 15 hours ago) and read 6235 times:

I would think that it would be in LOT's best interest to exercise those options and maybe sell them if anything.

User currently offlineScouseflyer From United Kingdom, joined Apr 2006, 3402 posts, RR: 9
Reply 2, posted (6 years 3 months 2 weeks 5 days 15 hours ago) and read 6212 times:



Quoting Dw9115 (Reply 1):
I would think that it would be in LOT's best interest to exercise those options and maybe sell them if anything.

I would guess it would depend if the options are for near term deliveries or not. If they're for planes in 2015/16 I'm not sure that many airlines will be interested in buying them if turned into actual orders.


User currently offlineMarcinGDN From Poland, joined Jun 2008, 103 posts, RR: 0
Reply 3, posted (6 years 3 months 2 weeks 5 days 11 hours ago) and read 5904 times:

did they ever exercise options with boeing?


Terra Incognita
User currently offlineBabybus From , joined Dec 1969, posts, RR:
Reply 4, posted (6 years 3 months 2 weeks 5 days 11 hours ago) and read 5854 times:

I wonder what they intend to use instead?

Unless they want to escape long haul operations.


User currently offlineDw9115 From United States of America, joined Dec 2005, 449 posts, RR: 2
Reply 5, posted (6 years 3 months 2 weeks 5 days 10 hours ago) and read 5703 times:



Quoting Scouseflyer (Reply 2):
I would guess it would depend if the options are for near term deliveries or not. If they're for planes in 2015/16 I'm not sure that many airlines will be interested in buying them if turned into actual orders.

Even if they are for the 2015/16 time frame I would imagine that the aircraft would be worth more on the open market then what LOT is paying for them.


User currently offlineFlylot From United States of America, joined Dec 2007, 187 posts, RR: 0
Reply 6, posted (6 years 3 months 2 weeks 5 days 7 hours ago) and read 5440 times:

First its "might" not. So there always a chance if they get the funding. But they probably won't given the trend in oil prices and the global economy.

Quoting Babybus (Reply 4):
I wonder what they intend to use instead?

Unless they want to escape long haul operations.

These are options for 8 789 they are canceling, not the order of 8 788s that they purchased and are due in 2010 ( but who really knows now). I don't know where 10 options came from.

Quoting Dw9115 (Reply 5):
Even if they are for the 2015/16 time frame I would imagine that the aircraft would be worth more on the open market then what LOT is paying for them.


You have a point. LOT already knows how profitable leasing long haul aircraft can be as they have leased their 763 frequently. But maybe 8 is too much.



"In Soviet Russia, airplane flies on you"
User currently offlinePennPal From United States of America, joined May 2004, 170 posts, RR: 0
Reply 7, posted (6 years 3 months 2 weeks 5 days 6 hours ago) and read 5374 times:



Quoting Flylot (Reply 6):
First its "might" not.

...and second, it's "it's"... Big grin


User currently offlineFRNT787 From United States of America, joined Sep 2007, 1329 posts, RR: 15
Reply 8, posted (6 years 3 months 2 weeks 5 days 4 hours ago) and read 5195 times:



Quoting MarcinGDN (Reply 3):
did they ever exercise options with boeing?

I believe the original order was for 6, and 2 options have been exercised since the original order. I could be wrong though.



"We have a right to fail, because failure makes us grow" --Glenn Beck
User currently offlineKochamLOT From United States of America, joined Sep 2007, 301 posts, RR: 0
Reply 9, posted (6 years 3 months 2 weeks 5 days 1 hour ago) and read 4661 times:

sorry guys but what does it mean to 'excercise options'? Ive heard this a lot but am not sure what it means.
thanks.

BTW...GO LOT!


User currently offlineFlylot From United States of America, joined Dec 2007, 187 posts, RR: 0
Reply 10, posted (6 years 3 months 2 weeks 4 days 20 hours ago) and read 3866 times:



Quoting PennPal (Reply 7):

 butthead   Silly

Quoting FRNT787 (Reply 8):

close.
In 2005, the original order was for 7 with two options for the 788 and purchase rights for five more.
In 2007, They exercised one and the order increased to 8.

So excuse my previous comment I was looking at Wikipedia. So I don't know where someone using Wikipedia got 8 options for 789 or where this journal got 10 options. There is just a option for one more aircraft.

Quoting KochamLOT (Reply 9):

Airlines often get options for additional aircraft when they order aircraft. Options not only allow airlines to delay final purchase until the market becomes more clear, but they a guarantee a future delivery slot. This would be different than say ordering an aircraft today and getting the latest delivery slot.



"In Soviet Russia, airplane flies on you"
User currently offlineMarcinGDN From Poland, joined Jun 2008, 103 posts, RR: 0
Reply 11, posted (6 years 3 months 2 weeks 4 days 15 hours ago) and read 3300 times:

I believe it was 7 orders + 7 options.
Ok they exercised 1 and got two more options..
and want to get rid of 6 LOL

anyway my point was that LO was also having options for 738 if I remember well.
Never exercised and now stuck with little planes or old Boeings.



Terra Incognita
User currently offlineFlylot From United States of America, joined Dec 2007, 187 posts, RR: 0
Reply 12, posted (6 years 3 months 2 weeks 4 days 10 hours ago) and read 3174 times:

Quoting MarcinGDN (Reply 11):
I believe it was 7 orders + 7 options.
Ok they exercised 1 and got two more options..
and want to get rid of 6 LOL

Ha! ok here we go again.

2005= 7 orders, 2 options, 5 purchase rights =14
2007= +1 order, -1 option, no change in purchase rights =14.
Total= 8 orders, 1 option, 5 purchase rights. =14

What the author of this is bunching the purchase rights and options to make 6 options. Now if someone could clarify what purchase rights are I think there would be less confusion.

[Edited 2008-09-06 05:58:16]

[Edited 2008-09-06 06:00:08]


"In Soviet Russia, airplane flies on you"
User currently offlineKochamLOT From United States of America, joined Sep 2007, 301 posts, RR: 0
Reply 13, posted (6 years 3 months 6 days 18 hours ago) and read 2794 times:

When does this plane ever fly?
i remember saying that delays so early in its development were a bad sign and someone on the forum told me otherwise. I knew it though. its taking forever and im excited. when does LOT get their first one to ORD?


User currently offlineBlueSky1976 From Poland, joined Jul 2004, 1911 posts, RR: 4
Reply 14, posted (6 years 3 months 6 days 18 hours ago) and read 2740 times:



Quoting KochamLOT (Reply 13):
when does LOT get their first one to ORD?

2010, unless this so-called "airline" doesn't collapse first.



Now get your f***ing Jumbo Jet off my airport!!! - AC/DC "Ain't No Fun To Be a Millionaire"
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