baec777
Posts: 1232
Joined: Sat Oct 30, 1999 5:01 am

Boeing And Airbus Options Question....

Sat Jan 05, 2002 10:54 am

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
 
Klaus
Posts: 20594
Joined: Wed Jul 11, 2001 7:41 am

RE: Boeing And Airbus Options Question....

Sun Jan 06, 2002 11:16 pm

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.
 
Andreas
Posts: 5880
Joined: Tue Oct 09, 2001 7:56 pm

RE: Boeing And Airbus Options Question....

Sun Jan 06, 2002 11:26 pm

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!
 
baec777
Posts: 1232
Joined: Sat Oct 30, 1999 5:01 am

RE: Boeing And Airbus Options Question....

Mon Jan 07, 2002 4:47 am

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
 
gerardo
Posts: 3372
Joined: Sun May 21, 2000 6:22 pm

RE: Boeing And Airbus Options Question....

Mon Jan 07, 2002 5:00 am

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
 
LY744
Posts: 5185
Joined: Sat Feb 03, 2001 11:55 pm

RE: Boeing And Airbus Options Question....

Mon Jan 07, 2002 5:09 am

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
 
BFS
Posts: 699
Joined: Sun Nov 04, 2001 2:33 am

RE: Boeing And Airbus Options Question....

Mon Jan 07, 2002 7:46 am

Baec777, it is quite clear this isn't a Airbus-Boeing Debate, but how long before it turns into one?
 
baec777
Posts: 1232
Joined: Sat Oct 30, 1999 5:01 am

RE: Boeing And Airbus Options Question....

Mon Jan 07, 2002 10:45 am

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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