remcor
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Do Aircraft Come With Free Shipping And Handling?

Sun Dec 10, 2006 1:19 pm

Ok, I phrased it flippantly, but is an aircraft purchase from say, Boeing or Airbus, FOB origin or FOB destination? Does the airline have to fly some pilots over to Boeing to pick up the keys, fill out the paperwork and fly her home, or is delivery to the destination airport sometimes part of the deal?
 
AirTranTUS
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RE: Do Aircraft Come With Free Shipping And Handling?

Sun Dec 10, 2006 1:27 pm

I remember hearing on TV that when WN receives a new jet, instead of doing a test flight by company pilots, they take the plane and the free tank of gas back to DAL. Some employees are also along for the ride. What I heard said that WN does this because they know the capabilities of the aircraft they are receiving. They do have a few.

Maybe OPNLguy can back this up?
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jjbiv
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RE: Do Aircraft Come With Free Shipping And Handling?

Sun Dec 10, 2006 2:01 pm

Certainly almost always FOB origin.

Joe
 
gunsontheroof
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RE: Do Aircraft Come With Free Shipping And Handling?

Sun Dec 10, 2006 2:02 pm

Quoting Remcor (Thread starter):
Does the airline have to fly some pilots over to Boeing to pick up the keys, fill out the paperwork and fly her home

From what I understand, that's exactly what happens.
 
jetdeltamsy
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RE: Do Aircraft Come With Free Shipping And Handling?

Sun Dec 10, 2006 2:02 pm

I'm sure the multi-millioin dollar price tax is "upon delivery".

[Edited 2006-12-10 06:03:24]
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acidradio
Crew
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RE: Do Aircraft Come With Free Shipping And Handling?

Sun Dec 10, 2006 6:51 pm

At least with Bombardier, the aircraft are delivered FOB Montreal. I spoke with some 9E pilots who went to YUL to pick up brand new CRJ's from the factory. Apparently they have a delivery center, which processes all the necessary paperwork and even has flight releases ready for the pilots. Bombardier even throws in a full tank of fuel and caters the galley with meals and Coca-Cola beverages for the pilots. The pilots I spoke with flew from YUL to MEM (9E's headquarters) and had to also declare the aircraft to customs. The Bombardier delivery center also furnished the pilots with all the necessary paperwork to declare the airplane to US Customs.
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VonRichtofen
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RE: Do Aircraft Come With Free Shipping And Handling?

Sun Dec 10, 2006 7:32 pm

What about a completely new aircraft type for the airline?
 
anax
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RE: Do Aircraft Come With Free Shipping And Handling?

Sun Dec 10, 2006 7:41 pm

no its FOB. the plane leaves the factory under the company's country registration. pilots fly there , check the plane if it is according to the specifications of the contract , pick up the keys , sign the papers and fly back home.

Quoting VonRichtofen (Reply 6):
What about a completely new aircraft type for the airline?

if it is a new type for the airline , then the airline sends pilots much in advance for the initial training at the manufacturers traning center , Toulouse for Airbus , and Seattle for Boeing , so when it is time to deliver the aircraft , company's pilots are familiar with it.
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andz
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RE: Do Aircraft Come With Free Shipping And Handling?

Sun Dec 10, 2006 9:22 pm

Quoting Remcor (Thread starter):
FOB origin or FOB destination



Quoting Jjbiv (Reply 2):
always FOB origin.



Quoting Acidradio (Reply 5):
FOB Montreal



Quoting Anax (Reply 7):
its FOB

First of all, according to the Incoterms 2000 standards, FOB only applies to goods transported by sea or inland waterway. If the airline collects the aircraft at the factory and is responsible for getting it home, it is ex-works (EXW).

http://www.ltdmgmt.com/incoterms.htm
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jetstar
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RE: Do Aircraft Come With Free Shipping And Handling?

Sun Dec 10, 2006 11:56 pm

From what I have read, all the airlines that have Boeing jets in production have their own company personnel on site. All Boeing airplanes are test flown by Boeing company pilots with the airline reps on board. In the case of the B-737, after the test flight or flights, the airplane, which is built in Renton is flown to the paint facility at Boeing Field for painting and then turned over to the airline. Wide body Boeings are all test flown and painted in Everett. Either way the airplane ownership is transferred to the airline in the State of Washington after the final payment is received by Boeing and flown out by the airlines pilots.

On Southwest Airlines web site early this year they had a weekly pictorial on the birth on one of their 737’s from initial cutting of the metal to final delivery. The only test flight took off from Renton and landed at Boeing Field.

Some corporate biz jets are flown by the manufacturer to a different state where the paperwork is signed for and ownership transferred to avoid local sales taxes, I believe Gulfstream does this to avoid the Georgia state sales tax.

In Connecticut there is a state law that exempts any instate aircraft manufacturer, i.e. Sikorsky from charging state sales taxes on aircraft picked up in state.

I would assume the state of Washington has a similar law exempting Boeing from the state sales tax on aircraft sold to US based airlines.

Also some biz jets are built in one state and flown to another state where the interior is installed. All Falcon jets are built in France and flown to Little Rock Arkansas for the interior, avionics and paint. All large Challenger biz jets are built in Canada and at one time some of the interiors were installed in Wichita Kansas or Tucson Arizona. Then the airplane is flown to another state or country by the manufacturer for transfer of ownership to avoid the sales tax on the added work. For US deliveries, most times the state is Delaware because they do not have a state sales tax and almost all large US corporations are incorporated in Delaware.
 
474218
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 1:41 am

Quoting AirTranTUS (Reply 1):
I remember hearing on TV that when WN receives a new jet, instead of doing a test flight by company pilots, they take the plane and the free tank of gas back to DAL. Some employees are also along for the ride. What I heard said that WN does this because they know the capabilities of the aircraft they are receiving. They do have a few.



Quoting Remcor (Thread starter):
Ok, I phrased it flippantly, but is an aircraft purchase from say, Boeing or Airbus, FOB origin or FOB destination? Does the airline have to fly some pilots over to Boeing to pick up the keys, fill out the paperwork and fly her home, or is delivery to the destination airport sometimes part of the deal?

One or two company (manufacture) test flights are followed by a customer acceptance flight. After the customer acceptance flight delivery is made. Actual delivery method will very between manufactures and customers, but customer crews are used for the delivery flight.

By the way there are "NO KEYS".
 
dutchjet
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 1:53 am

Quoting Remcor (Thread starter):
Ok, I phrased it flippantly, but is an aircraft purchase from say, Boeing or Airbus, FOB origin or FOB destination? Does the airline have to fly some pilots over to Boeing to pick up the keys, fill out the paperwork and fly her home, or is delivery to the destination airport sometimes part of the deal?

And I thought that your next question would be.......is there a 30 exchange or money back period?

-------------

All kidding aside, is there a typical ""guaranty"" period for an airplane during which the manufacturer will fix problems and defects.....similiar to what is offered on an automobile? This is a question that I always wanted to ask.
 
RaginMav
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 2:47 am

Quoting Acidradio (Reply 5):
and had to also declare the aircraft to customs

wow I can just imagine that:

Customs agent: "Sir, do you have any items from Canada to declare?"

Captain: "well, I have this snowglobe for my wife, this t-shirt from the Hard Rock for my daughter, and um... there was something else.... OH! this CRJ we just got out of."
 
andz
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 2:58 am

Quoting Dutchjet (Reply 11):
is there a typical ""guaranty"" period for an airplane during which the manufacturer will fix problems and defects

A couple of months ago I flew on a new Q400 here and there was an engineer on board, we got chatting during the flight and he said that he was just flying about with the plane during a 3 week shakedown as part of the deal with SA Express.
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wingnut767
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 3:04 am

Quoting Dutchjet (Reply 11):
All kidding aside, is there a typical ""guaranty"" period for an airplane during which the manufacturer will fix problems and defects.....similiar to what is offered on an automobile? This is a question that I always wanted to ask.

Yes aircraft are warrantied. Usually for a year. Some Airlines put a warranty sticker on the log book so the Mech's will know. The parts replaced on the warrantied bird are handled differently.
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zvezda
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RE: Do Aircraft Come With Free Shipping And Handli

Mon Dec 11, 2006 3:06 am

Assuming it is a routine delivery and not a new type, the usual procedure goes about like this (varies a bit from airline to airline):
About four or five days before delivery, a test pilot, a QA engineer, and a junior executive arrive at Seattle, Toulouse, or Finkenwerder. The QA engineer observes and checks things while the airline's test pilot (in command) and a manufacturer's test pilot put the plane through a static power up, a high-speed taxi test, and then a flight test. One or more of these tests may be repeated if there are problems. Once all these tests are completed, the airline team compiles a list of all the problems found (typically dozens, many of which are minor) and then they sit down with the manufacturer and negotiate consessions. Once the concessions are agreed, they sign for the plane. A day or two before the expected delivery date, a second airline test pilot flies in and may observe the negotiations. Then the two test pilots fly the plane home with the QA engineer and executive as passengers. Sometimes one or two instructor pilots travel with the second test pilot and go along for the ride.

Been there, done that. Big grin
 
zanl188
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 3:09 am

Quoting Jetstar (Reply 9):
In the case of the B-737, after the test flight or flights, the airplane, which is built in Renton is flown to the paint facility at Boeing Field for painting and then turned over to the airline.

Not necessarily, Boeing has paint hangars at Renton. Some 737s get paint before first flight, some after they get to BFI.

Quoting Jetstar (Reply 9):
Either way the airplane ownership is transferred to the airline in the State of Washington after the final payment is received by Boeing and flown out by the airlines pilots.

Not necessarily. I've seen Boeing do deliveries at Vancouver Canada & Frankfurt Germany. Usually done for tax & or political reasons.
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baron95
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 3:26 am

My question (that I always wanted to ask) is about how the engines'delivery is handled. As I understand it, the airline buys the engines directly from GE, RR, PW, whatever, and has it delivered to the airframe mannufacturer (Boeing, Aribus, whatever).

Is the acceptance/payment for the engines final when they are shipped to the airframe mannufacturer or when the customer test flights and takes delivery of the plane.

Are there any engine reps on the test flights or final aircraft acceptance?

Thanks.
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zvezda
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 3:31 am

Quoting Baron95 (Reply 17):
Are there any engine reps on the test flights or final aircraft acceptance?

There were when I did it, not onboard the test flights, but present on the ground.
 
PanHAM
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 3:37 am

Quoting Andz (Reply 8):
and is responsible for getting it home, it is ex-works (EXW).

exactly, and at which time, final payment is initiated. When the wheels leave the runway, the money flows from the buyers account to the aircraft manufacturers account.
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jjbiv
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 3:58 am

Quoting Andz (Reply 8):
First of all, according to the Incoterms 2000 standards, FOB only applies to goods transported by sea or inland waterway. If the airline collects the aircraft at the factory and is responsible for getting it home, it is ex-works (EXW).

Firstly, when you quoted me you took the liberty of quoting less than the full sentence I wrote without using ellipses to indicate material was missing. This gives the impression that I wrote an absolute statement, something I go to great lengths never to do  Wink

Secondly, formal usage of Incoterms internationally is often different from their common domestic usage within the U.S. FOB (often incorrectly thought to mean Freight On Board, incidentally) is routinely used to describe transactions that will never see a water-going vessel.

Thirdly, EXW implies that the buyer facilitates the Customs export process. This may indeed be the case with respect to commercial aircraft, but, if so, it is otherwise a very rare practice; the seller almost always bears responsibility to export the goods from the country of manufacture, resulting in the Incoterm FCA.

Joe
 
PanHAM
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RE: Do Aircraft Come With Free Shipping And Handli

Mon Dec 11, 2006 5:36 am

Quoting Jjbiv (Reply 20):

Secondly, formal usage of Incoterms internationally is often different from their common domestic usage within the U.S. FOB (often incorrectly thought to mean Freight On Board, incidentally) is routinely used to describe transactions that will never see a water-going vessel.

Thirdly, EXW implies that the buyer facilitates the Customs export process. This may indeed be the case with respect to commercial aircraft, but, if so, it is otherwise a very rare practice; the seller almost always bears responsibility to export the goods from the country of manufacture, resulting in the Incoterm FCA.

The INCOTERMS are valid worldwide. If, for domestic shipping in the US, the incorrect term FOB factory is often used, we should not care.

Next, the customs formalities vary from country to country. EXW in Germany always means, that the seller has to issue and pre-clear the export declaration and statistic form. The buyer cannot do this, by customs regulation. The seller has included these (minor - it is less than € 100,00) costs in his selling price, regardless if it is a machine worth € 1000,00 or an aircraft.

Let's assume Airbus ships a 319 ex XFW, the Incoterm will be EXW, customs will have stamped the statistic form presented by Airbus, the a/c will lift off and no further delivery charges apply.

FCA however is not appölicable, as the place of exportation is the factory of the seller. There is no inland transportation to a port of shipment.,

A full load of Kerosene may be on the house for a good customer.
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remcor
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 8:16 am

Quoting 474218 (Reply 10):
By the way there are "NO KEYS".

What??? Well does it at least come with fuzzy dice on the rear-view mirror?
 
acabgd
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 8:20 am

Quoting 474218 (Reply 10):
By the way there are "NO KEYS".

Watched a Lufthansa programme on one of their their B744 deliveries in Seattle. And yes, they also received the keys.

Not real starter keys, of course.
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burnsie28
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 8:23 am

Quoting Acidradio (Reply 5):
I spoke with some 9E pilots who went to YUL to pick up brand new CRJ's from the factory

There will be some people from NW there too since NW owns the planes (leases them) and then subleases them to 9E.

Northwest sends flight crews and some other people to France and such to fly their planes back to the US, then to MSP for delivery and preperation for service.
 
474218
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 8:36 am

Quoting Acabgd (Reply 23):
Watched a Lufthansa programme on one of their their B744 deliveries in Seattle. And yes, they also received the keys.

Not real starter keys, of course.

I think you will find the keys are only ceremonial. I don't known what the keys would lock or unlock, except may the licquor locker?
 
acabgd
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RE: Do Aircraft Come With Free Shipping And Handli

Mon Dec 11, 2006 8:45 am

Quoting 474218 (Reply 25):
I think you will find the keys are only ceremonial. I don't known what the keys would lock or unlock, except may the licquor locker?

Certainly ceremonial, but 474218 emphasized there are no keys. However, there still are keys, albeit just for show (maybe cockpit doors as well?).

Wonder if it's only for a brand new B744 or other Boeing types as well and if Airbus does the same for, say A346 or will be doing for the A380.
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LTU932
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 9:37 am

Quoting 474218 (Reply 25):
I don't known what the keys would lock or unlock, except may the licquor locker?

 rotfl   rotfl   rotfl 

Quoting Acabgd (Reply 26):
Certainly ceremonial, but 474218 emphasized there are no keys. However, there still are keys, albeit just for show (maybe cockpit doors as well?).

Wonder if it's only for a brand new B744 or other Boeing types as well and if Airbus does the same for, say A346 or will be doing for the A380.

I saw once a programme about TZ ops on the Discovery a few months back. There was a part on I believe the C1 or acceptance flight for a brandnew 753 and during the handover ceremony, the TZ people did get a set of ceremonial keys for the aircraft from Boeing.
 
swissy
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 9:39 am

Quoting Zvezda (Reply 15):
Assuming it is a routine delivery and not a new type, the usual procedure goes about like this (varies a bit from airline to airline):
About four or five days before delivery, a test pilot, a QA engineer, and a junior executive arrive at Seattle, Toulouse, or Finkenwerder. The QA engineer observes and checks things while the airline's test pilot (in command) and a manufacturer's test pilot put the plane through a static power up, a high-speed taxi test, and then a flight test. One or more of these tests may be repeated if there are problems. Once all these tests are completed, the airline team compiles a list of all the problems found (typically dozens, many of which are minor) and then they sit down with the manufacturer and negotiate consessions. Once the concessions are agreed, they sign for the plane. A day or two before the expected delivery date, a second airline test pilot flies in and may observe the negotiations. Then the two test pilots fly the plane home with the QA engineer and executive as passengers. Sometimes one or two instructor pilots travel with the second test pilot and go along for the ride.

Agree, it was pretty similar the 4 times I was present at take over......

And each time "we" got the keys..... Big grin and a tank full of fuel some catering and off we went.....  cloudnine 

Cheers,
 
bond007
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 9:52 am

Quoting Remcor (Thread starter):
Do Aircraft Come With Free Shipping And Handling?

I believe this definitely happens with the Fedex and UPS aircraft, where instead of FOB or EXW, it is obviously 'Priority Overnight'.
Each aircraft is scanned at the manufacturer, and can be tracked online at www.fedex.com. No signature required.


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dw9115
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 10:00 am

Quoting 474218 (Reply 10):
By the way there are "NO KEYS".

Not true some biz jets and commercial jets do have keys they hand over to you but they do not have anything to do with the starting of them. But on the other hand almost all U.S. Military helicopters have keys you need to "turn them over" for starting and a lot of military jets to.
 
777law
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 10:07 am

Depends on where delivery takes place. In the shipbuilding world, for example, delivery of the vessel generally takes place at the builders yard after the vessel has completed sea trials. The buyer is responsible for transporting a crew to the yard to the sail the vessel out of yard. Delivery is usually effected with the simultaneous handover of the delivery payment from the buyer to the builder and the handover of the vessel from the builder to the buyer.

I believe it is the same in the world of aircraft. Delivery takes place at Boeing / Airbus facilities after the aircraft has completed trials. I doubt Boeing or Airbus accept the risk of physcial delivery to the buyer. The buyer takes delivery at builders airfield. Much like a shipbuilding, I'm sure B & A let the buyer assume risk for the aircraft as soon as the aircraft has been certified airworthy.
If its not a Boeing I ain't going
 
blueflyer
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 10:28 am

Quoting Jjbiv (Reply 20):
Thirdly, EXW implies that the buyer facilitates the Customs export process.



Quoting PanHAM (Reply 21):
Next, the customs formalities vary from country to country. EXW in Germany always means, that the seller has to issue and pre-clear the export declaration and statistic form

EXW may have localized meanings beyond its standard purpose due to local laws, but by its definition alone, EXW is the most favorable term for the seller, as the buyer assumes all risks and obligations, including that of loading the merchandise onto a transport vehicle (when applicable). Goods sold under EXW are under the full responsibility of the buyer as soon as they are made available to said buyer. If Boeing sells a plane strictly EXW, it makes the plane available at a specific stand, and the airline is responsible from there on, including fueling it up, arranging for push back, etc...
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777law
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 10:31 am

Quoting RaginMav (Reply 12):
All kidding aside, is there a typical ""guaranty"" period for an airplane during which the manufacturer will fix problems and defects.....similiar to what is offered on an automobile? This is a question that I always wanted to ask.

Probably so. Most large transport investments like ships and aircraft carry a manufacturers warranty. In shipbuilding the warranty period lasts between 12 and 24 months depending on the vessel-type, the purchaser and the number of vessels purchased.

Aircraft likely have seperate fusalage and engine warranties. I doubt A or B warranty GE / P&W / RR engines -- that is probably negotiated between the engine builder and the buyer. A&B likely warranty the aircraft fusalage against defects, etc. for a fixed period of operation.
If its not a Boeing I ain't going
 
b741
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 10:38 am

I read something to the effect that BA pilots would do a 777 pre-delivery flight around Everett. This was to check for any "bugs" before acceptance.
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corey07850
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 10:46 am

There was a post in the Trip Report Forum about a guy that flew over to LGB to pick up a 717 for AirTran... It was somewhat ceremonious, and overall a very interesting read--- perhaps someone knows where to find it?
 
AirframeAS
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 11:04 am

Quoting 474218 (Reply 10):
By the way there are "NO KEYS".

 checkmark 

Quoting RaginMav (Reply 12):
have this snowglobe for my wife

Is that snowglobe the tracking device we were talking about last month in Non-av?!  duck  (Sorry, couldn't resist!! LOL!!)
A Safe Flight Begins With Quality Maintenance On The Ground.
 
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falstaff
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 11:04 am

Quoting RaginMav (Reply 12):
Captain: "well, I have this snowglobe for my wife, this t-shirt from the Hard Rock for my daughter, and um... there was something else.... OH! this CRJ we just got out of."

I bought a car in Canada once and the US customs agent gave me a bit of a hassle. The car was only $400 Canadian, I could only imagine the Duty for a CRJ!  wideeyed 

All kidding aside I am sure the customs agents who handle that kind of thing are well versed in the procedure, but imagine a new guy.  confused 
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mav75
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 12:16 pm

There are many references to FOB and EXW. My understanding of FOB is fuel on board, but I don't think it applies here. Can someone provide an explanation of what is meant by FOB? Also, what is EXW?

Thanks!
 
andz
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 12:42 pm

Quoting Jjbiv (Reply 20):
Firstly, when you quoted me you took the liberty of quoting less than the full sentence I wrote without using ellipses to indicate material was missing. This gives the impression that I wrote an absolute statement, something I go to great lengths never to do

My apologies!  Smile

Quoting Mav75 (Reply 38):
There are many references to FOB and EXW. My understanding of FOB is fuel on board, but I don't think it applies here. Can someone provide an explanation of what is meant by FOB? Also, what is EXW?

If you read the link in my previous reply (reply 8) there is a brief definition of each of the terms.
After Monday and Tuesday even the calendar says WTF...
 
777law
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 1:20 pm

Quoting Andz (Reply 39):



Quoting Andz (Reply 39):
There are many references to FOB and EXW. My understanding of FOB is fuel on board, but I don't think it applies here. Can someone provide an explanation of what is meant by FOB? Also, what is EXW?

FOB = FREE ON BOARD. FOB means that delivery occurs and title and risk pass to the Buyer when the good is delivered aboard the delivery vessel by the Seller / Builder. FOB refers exclusively to deliveries made by sea or inland waterway transportation. Obviously FOB would not apply to the delivery of a large commercial aircraft.

EXW = EX WORKS. EXW means delivery occurs and title and risk pass at the door of the Seller / Builder. EXW applies to any mode of transportation and is the INCOTERM that applies to aircraft sales.

[Edited 2006-12-11 05:27:33]
If its not a Boeing I ain't going
 
PanHAM
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RE: Do Aircraft Come With Free Shipping And Handling?

Mon Dec 11, 2006 3:45 pm

Quoting BlueFlyer (Reply 32):
EXW may have localized meanings beyond its standard purpose due to local laws, but by its definition alone, EXW is the most favorable term for the seller, as the buyer assumes all risks and obligations, including that of loading the merchandise onto a transport vehicle (when applicable). Goods sold under EXW are under the full responsibility of the buyer as soon as they are made available to said buyer. If Boeing sells a plane strictly EXW, it makes the plane available at a specific stand, and the airline is responsible from there on, including fueling it up, arranging for push back, etc...

EXW or other terms are valid worldwide, they do not have localized meanings, they just are applied incorrect by many.

Generally, the purchaser of any product pays all related costs of the product, regardless of the terms. The export handling under EXW is on the part of the buyer, however, the seller's responsibility is to issue the expert documents because in most countries customs and tax laws require that. Planes need export licences which have to be applied for by the exporter. If an import licence is required, this is on the part of the buyer. The export handling however is a very minor part of the total costs.

An important part of the Incoterms is the transition of the risk, which in the case of EXW is clearly defined the lift-off from the runway. from here, the purchaser has to insure.

The conclusion has been made already that EXW is the only applicable Incoterm for the delivery of large transport aircraft, it may however be DDP for small single engined. That is completely up to the contract partners.

Quoting 777law (Reply 40):
FOB = FREE ON BOARD. FOB means that delivery occurs and title and risk pass to the Buyer when the good is delivered aboard the delivery vessel by the Seller / Builder. FOB refers exclusively to deliveries made by sea or inland waterway transportatio

...with the exception of container and ro/ro traffic, where the correct Incoterm is FCA.
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lotsamiles
Posts: 254
Joined: Wed May 18, 2005 1:22 am

RE: Do Aircraft Come With Free Shipping And Handling?

Tue Dec 12, 2006 4:00 am

Quoting ZANL188 (Reply 16):
I've seen Boeing do deliveries at Vancouver Canada

I have been involved in a couple of 747-400F deliveries for foreign airlines. On one occasion the aircraft was accepted by the airline in Everett and then flown by the airline crew to YVR to pick up its first load of cargo (which was trucked up from SEA, the usual station). I asked about this and the airline folks said it was for tax reasons that they could not simply fly down to SEA for the first load of cargo.

On another occasion the airline flew from PAE to SFO to pick up a load going overseas. I guess they did not need the tax break...

Regards,
Lotsamiles

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