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Boeing And Airbus Options Question....  
User currently offlineBaec777 From United States of America, joined Oct 1999, 1231 posts, RR: 1
Posted (12 years 9 months 2 days 16 hours ago) and read 1882 times:

I am asking what does it means when airlines order planes from both Boeing & Airbus, what does the "option" means in purchase...?

give me an example of options....

This Is Not A Boeing Vs. Airbus Situation.

baec777

7 replies: All unread, jump to last
 
User currently offlineKlaus From Germany, joined Jul 2001, 21480 posts, RR: 54
Reply 1, posted (12 years 9 months 1 day 4 hours ago) and read 1824 times:

As far as I know, it´s like this:

Options are basically reservations for aircraft without a firm commitment. It´s easier (and cheaper) to back out of an option than cancelling an order if the economic situation changes.

On the other hand, an option can be converted into an order at a later time, while retaining the planned delivery date.


User currently offlineAndreas From Germany, joined Oct 2001, 6104 posts, RR: 31
Reply 2, posted (12 years 9 months 1 day 4 hours ago) and read 1818 times:

ok, let's just hope this will not develop into a vs. b, but as for your question, Klaus is absolutely right.
One more thing though:
Both manufacturers are now providing the chance to get out of firm orders, even losses, that result from selling aircraft, that were not accepted by the carrier that ordered it, way below order price (not list price!), go straight into the manufacturers p&l. Reason: What good is a receivable from a company that might just go belly-up, and even if it doesn't out of whatever reason, will never ever again order any aircraft from that manufacturer. So there are certain default clauses in the contracts, that leave the selling risk to a nd b.
Regards
Andreas



I know it's only VfB but I like it!
User currently offlineBaec777 From United States of America, joined Oct 1999, 1231 posts, RR: 1
Reply 3, posted (12 years 9 months 23 hours ago) and read 1787 times:

So if I buy 70 Triple 7 jets all straight delivered to me, I dont needs any option...?

If I order Boeing 737-600 and cancelled my B717 orders.

What do you call that....??

baec777


User currently offlineGerardo From Spain, joined May 2000, 3481 posts, RR: 31
Reply 4, posted (12 years 9 months 22 hours ago) and read 1777 times:

Question 1: yep, no options, if all ordered are delievered or have a delivery slot attached to it.

Question 1: This can either be an order conversion, or just two separate actions: a cancellation and a new order.

Gerardo



dominguez(dash)online(dot)ch ... Pushing the limits of my equipment
User currently offlineLY744 From Canada, joined Feb 2001, 5536 posts, RR: 10
Reply 5, posted (12 years 9 months 22 hours ago) and read 1774 times:

What happens to a delivery slot if an airline doesn't excercise it's option? Will an a/c that was supposed to be built later will be built instead and delivered earlier to it's customer?

LY744.



Pacifism only works if EVERYBODY practices it
User currently offlineBFS From United Kingdom, joined Nov 2001, 742 posts, RR: 2
Reply 6, posted (12 years 9 months 20 hours ago) and read 1753 times:

Baec777, it is quite clear this isn't a Airbus-Boeing Debate, but how long before it turns into one?

User currently offlineBaec777 From United States of America, joined Oct 1999, 1231 posts, RR: 1
Reply 7, posted (12 years 9 months 17 hours ago) and read 1724 times:

BFS,

I am not going to begin or start a debate with boeing over airbus, or airbus over boeing, none of that. I have the answer. Thank you,

baec777


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