Big777jet From , joined Dec 1969, posts, RR: Posted (13 years 3 months 4 weeks 1 day 23 hours ago) and read 1949 times:
I found flight tracker. UAL delivery new A320 today from France stopover in Iceland to Indianapolis. I thought UAL could not afford due near bankruptcy.
Here it is:
Flight Number 9161
Departure City (Airport) Reykjavik, Iceland (BIKF)
Arrival City (Airport) Indianapolis, IN (IND)
Arrival Time 10/18/2002 02:49 PM
Remaining Flight Time 00:00
Aircraft Type Airbus A320
Current Altitude 0 feet
Current Groundspeed 0 mph
Flight Status Arrived
Jwenting From Netherlands, joined Apr 2001, 10213 posts, RR: 17
Reply 7, posted (13 years 3 months 4 weeks 1 day 15 hours ago) and read 1583 times:
It's quite easy, actually. Once a contract is signed there is usually a clause stating a penalty for cancelling it.
As you get closer to fullfillment of the contract (i.e. delivery date in this case) the penalty usually increases. At some point, the penalty becomes equal to or greater than the value of the contract (i.e. aircraft) itself.
So it is quite possible that cancelling the order would have cost them more than taking delivery, and now that they have the aircraft they can also use it to replace another aircraft in their fleet that is more expensive to operate thus lowering their operating cost overall which means a cashflow improvement.