Oykie
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Air One Inked Deal On Up To 90 A320 Jan. 12 2006

Fri Jan 13, 2006 5:52 pm

This decision has been known for a while, but now they have signed the contract.

ATWOnline

Italy's Air One, which operates an all-737 fleet to 23 domestic destinations, repositioned itself as a European player yesterday by signing a contract with Airbus for 30 A320s and 60 options.The deal reportedly is worth $1.8 billion at list prices. The CFM56-5B6/P-powered aircraft will be configured in a two-class layout seating 159 and gradually will replace the carrier's leased fleet of 21 737-400s, six dash 300s and three dash 200s.

Http://www.atwonline.com/news/story.html?storyID=3699
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CO7e7
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RE: Air One Inked Deal On Up To 90 A320 Jan. 12 2006

Fri Jan 13, 2006 5:56 pm

Quoting OyKIE (Thread starter):
by signing a contract with Airbus for 30 A320s and 60 options

What does 60 options mean ?
 
Oykie
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RE: Air One Inked Deal On Up To 90 A320 Jan. 12 2006

Fri Jan 13, 2006 5:58 pm

Quoting CO7e7 (Reply 1):
What does 60 options mean ?

Options mean they have slots available for 60 additional aircraft in the factory line. They will be getting 30 aircrafts for sure, but later on they can take 60 more aircrafts. But they can choose not to.

I am not sure if they have to pay for the options.
Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
 
CO7e7
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RE: Air One Inked Deal On Up To 90 A320 Jan. 12 2006

Fri Jan 13, 2006 6:02 pm

Quoting OyKIE (Reply 2):
I am not sure if they have to pay for the options.

That's what I wasn't sure about..

Thanks for the explanation though..
 
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scbriml
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RE: Air One Inked Deal On Up To 90 A320 Jan. 12 2006

Fri Jan 13, 2006 6:04 pm

Quoting CO7e7 (Reply 1):
What does 60 options mean ?

When an airline buys some planes they often take options on additional ones. Typically the options are valid for a number of years and would normally guarantee that the airline would pay the same price even if they take up the options several years after the original purchase. I believe a small deposit is normally required to purchase the option at the time of the original purchase.

For a small incremental cost, the airline gets a guaranteed price on some future purchases as well as a place (slots) in the production line (rather than going to the back of the queue if they purchased from fresh the second time).

It is a very common practice.
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astuteman
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RE: Air One Inked Deal On Up To 90 A320 Jan. 12 2006

Fri Jan 13, 2006 6:04 pm

AirOne boss expects to exercise options this year on top of the firm orders just placed.

http://news.bbc.co.uk/1/hi/business/4607942.stm

"Mr Toto said Air One would exercise 10 of its options for additional A320s as early as this year".

Also reported in Reuters + Bloomberg
A
 
CO7e7
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RE: Air One Inked Deal On Up To 90 A320 Jan. 12 2006

Fri Jan 13, 2006 6:12 pm

Quoting Scbriml (Reply 4):
For a small incremental cost, the airline gets a guaranteed price on some future purchases as well as a place (slots) in the production line (rather than going to the back of the queue if they purchased from fresh the second time).

Great explanation.. Thank you very much..  thumbsup 
 
Oykie
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RE: Air One Inked Deal On Up To 90 A320 Jan. 12 2006

Fri Jan 13, 2006 6:33 pm

Quoting Astuteman (Reply 5):
Mr Toto said Air One would exercise 10 of its options for additional A320s as early as this year".

Also reported in Reuters + Bloomberg
A

This is great news. Lets hope the orders keeps coming this year.  Smile
Dream no small dream; it lacks magic. Dream large, then go make that dream real - Donald Douglas
 
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scbriml
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RE: Air One Inked Deal On Up To 90 A320 Jan. 12 2006

Fri Jan 13, 2006 7:00 pm

Time flies like an arrow. Fruit flies like a banana!

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