NYC777
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TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 1:52 am

Just out on the newswire... I believe TAM has finalized the purchase of 4 x 777-300ER.

Interestingly eough 4 UFO 777s showed up this morning on Boeing's Order and Delivery web site so it might be them.

I'll try to post a link when I can.
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2travel2know
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 1:59 am

Why JJ would buy B777 if they're supposedly happy with A330?
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NYC777
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 2:03 am

They announced the order a few months ago. They needed a larger capacity airplane and the 77W won out over the A346. It seems they finalized it just recently.
That which does not kill me makes me stronger.
 
MCOflyer
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 2:07 am

Didnt they already order the 773ER. I believe these may be options.

MCOflyer
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aa1818
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 2:15 am

Quoting MCOflyer (Reply 3):
Didnt they already order the 773ER. I believe these may be options

I think they announced their intention, but I don't think it was ever signed. I believe this is the official finalization of the orders.

Great news for TAM- the 77W is an excellent a/c. Also great for Boeing who has had a relatively slow start to the year, hopefully sales for the 777 will gain some momentum after the BA (4), DJ (7) and TAM (4) orders.

Totally Tropical
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LipeGIG
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 2:47 am

Quoting 2travel2know (Reply 1):
Why JJ would buy B777 if they're supposedly happy with A330?

Besides the fact they need a larger plane, Boeing approached Tam with a fantastic deal: Tam needs widebodies to run new flights to Paris (from GIG) and Milan and the market does not offer anything for immediate lease.

Boeing provided the M11 deal (3 M11 during 16 to 20 months in order that Tam could begin GIG-CDG and new MXP route by the end of march) with a very good price.

Also financing thru Eximbank, creating a new credit line in favor of Tam.

Felipe
New York + Rio de Janeiro = One of the best combinations !
 
CO738
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 11:13 am

I need to get into the airplane leasing business seems its a risk but the expected profit return is very nice way to go Boeing gotta love my stocks  Smile
If only you could install an air horn on a plane...
 
DfwRevolution
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 11:33 am

Quoting LipeGIG (Reply 5):
Boeing approached Tam with a fantastic deal

Source?
 
PM
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 11:45 am

Quoting 2travel2know (Reply 1):
Why JJ would buy B777 if they're supposedly happy with A330?

For the same reason that AF, KL, CX, KE and whoever else have bought the 777-300ER and A330s. Indeed, SQ just ordered A330s after buying 777-300ERs.

In what possible sense do the 777-300ER and the A330 (especially the A330-200 which TAM have) compete?  confused 
 
boeingfever777
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 11:53 am

Sounds good for Boeing and TAM... Congrats!

Looking good for Boeing long-haul.

TAM
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LipeGIG
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 12:00 pm

Quoting DfwRevolution (Reply 7):
Source?

TAM CEO and CFO while talking with investors one day after announce the deal with Boeing and at time of 3Q results has been announced. I took part on the conference call.

Felipe
New York + Rio de Janeiro = One of the best combinations !
 
kaitak744
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 1:17 pm

Quoting 2travel2know (Reply 1):
Why JJ would buy B777 if they're supposedly happy with A330?

The 777-300ER is far far away from being a competitor of the A330. Largest A330 seats ~295 while 777-300ER seats ~360.

Quoting PM (Reply 8):
Indeed, SQ just ordered A330s after buying 777-300ERs.

SQ didn't order A330s. They leased them from Airbus.
Also, SQ's acquiring of A330s is only because they got a give away deal by Airbus in compensation to the A380 delays.
 
PM
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 1:58 pm

Quoting Kaitak744 (Reply 11):
SQ didn't order A330s. They leased them from Airbus.

I'd didn't say they bought them. I said they ordered them - which they did. Hairs. Splitting.

Quoting Kaitak744 (Reply 11):
Also, SQ's acquiring of A330s is only because they got a give away deal by Airbus in compensation to the A380 delays.

"Only". Oh, so they aren't highly suitable planes for SQ's route network? Shame.
 
DfwRevolution
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 2:17 pm

Quoting LipeGIG (Reply 10):
TAM CEO and CFO while talking with investors one day after announce the deal with Boeing and at time of 3Q results has been announced. I took part on the conference call.

Then we should quantify what constitutes a fantastic deal. The long-haul aircraft trade is a sellers market these days, especially when it comes to the 777. I have a healthy degree of skepticism when anyone claims they have secured a fantastic deal lately.

Quoting PM (Reply 12):
Oh, so they aren't highly suitable planes for SQ's route network? Shame.

What's the expression? Fourth time is the charm. If the A330 was quite the slam-dunk, I'm sure we would have seen them in SQ colors years ago. Let's be honest, and consider all the factors surrounding the lease arrangement for the A330....
 
leelaw
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RE: TAM Buys 4 X 777-300ER

Fri Feb 23, 2007 7:05 pm

Quoting DfwRevolution (Reply 13):
What's the expression? Fourth time is the charm. If the A330 was quite the slam-dunk, I'm sure we would have seen them in SQ colors years ago. Let's be honest, and consider all the factors surrounding the lease arrangement for the A330....

 checkmark  AFAIK, it's unprecedented for an OEM to manufacture aircraft for delivery to an operating lessee on a short-term operating lease where the OEM also acts as lessor (i.e. OEMS have traditionally "leased" new-build aircraft to customers only via "capital leases"). Why was this transactional structure necessary in the case of the Airbus/SQ lease deal? Perhaps it has something to do with an unacceptably high residual value risk for SQ or a third-party lessor of the aircraft in question?
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LipeGIG
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RE: TAM Buys 4 X 777-300ER

Sat Feb 24, 2007 12:08 am

Quoting DfwRevolution (Reply 13):
Then we should quantify what constitutes a fantastic deal. The long-haul aircraft trade is a sellers market these days, especially when it comes to the 777. I have a healthy degree of skepticism when anyone claims they have secured a fantastic deal lately.

If they could run the flights in the short term (GIG-CDG and GRU-MXP) with planes with the same CASK/CASM as the planes they should receive only in 18 months, with a good price (otherwise i doubt Tam would change from Airbus), a good long-term financing option, and considering it all Tam is not an investment grade company but it's now generating revenue on a route with very good and healthy yields, i should describe as a fantastic deal.
Just to remember, there are a MHRO closer to it's hub able to deal with M11 also.

The Deal could be fantastic for one airline and terrible for another. In this case i agree with you that a 777 deal nowadays is very good for Boeing, but Tam use to be Airbus customer only.

Felipe
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NW727251ADV
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RE: TAM Buys 4 X 777-300ER

Sat Feb 24, 2007 12:10 am

Quoting 2travel2know (Reply 1):
Why JJ would buy B777 if they're supposedly happy with A330?

You must be the ONE person on Earth who can't decipher the considerable size difference between an A330 and a 77W.  Yeah sure
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hardiwv
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RE: TAM Buys 4 X 777-300ER

Sat Feb 24, 2007 1:06 am

Quoting DfwRevolution (Reply 13):
Then we should quantify what constitutes a fantastic deal. The long-haul aircraft trade is a sellers market these days, especially when it comes to the 777

Lipe is correct. Boeing approached TAM with a very good deal. It was a win-win deal.

By ensuring TAM as a customer, Boeing would make the biggest airline in the region (TAM) become its customer - note that until then TAM was an Airbus customer. The deal has a major significance for Boeing. The second biggest airline in the region (GOL) is already an all-Boeing operator.

The deal with TAM was a breakthrough for Boeing, and it has major significance, especially taking into account the downfall of the previous main Boeing operator (RG).

Rgs,
 
Lemurs
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RE: TAM Buys 4 X 777-300ER

Sat Feb 24, 2007 4:35 am

Quoting DfwRevolution (Reply 13):
Then we should quantify what constitutes a fantastic deal. The long-haul aircraft trade is a sellers market these days, especially when it comes to the 777. I have a healthy degree of skepticism when anyone claims they have secured a fantastic deal lately.

Doh...other's beat me to it, but yeah...the adjective is in the mouth of the beholder here. If TAM says it was a great deal for them, it was a great deal. United may have laughed at such an offer, but they're not TAM. It's like a regional fast food chain having someone offer to buy franchise rights for 20 stores when the whole chain is only 20 stores now. Fantastic deal for them...McDonalds wouldn't even notice.
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NYC777
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RE: TAM Buys 4 X 777-300ER

Tue Feb 27, 2007 2:14 am

Ok TAM and Boeing has officially concluded the order for 4 x 77W and that was the UFO 777 order that was posted on Thursday on Boeing Weekly Order and Delivery web site.

http://biz.yahoo.com/prnews/070226/sfm094.html?.v=76
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LipeGIG
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RE: TAM Buys 4 X 777-300ER

Tue Feb 27, 2007 2:41 am

Quoting Lemurs (Reply 18):
United may have laughed at such an offer, but they're not TAM

Agree 100%. Tam can sell a US$ 1,200 R/T ticket as a deeply discount Y fare on a 10 hours flight, something that it's almost impossible for mostly routes operated by United. And during the day, can run a 3 hours flight for a US$ 350,00 O/W deep discount fare using the same planes.

Quoting NYC777 (Reply 19):
Ok TAM and Boeing has officially concluded the order for 4 x 77W and that was the UFO 777 order that was posted on Thursday on Boeing Weekly Order and Delivery web site.

Thanks for the news, and IMO, TAM will confirm at least 2 of the 4 options they have if the market continues to grow like nowadays. And will be not a surprise if they decide to confirm all options.

Felipe
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TradewindL1011
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RE: TAM Buys 4 X 777-300ER

Tue Feb 27, 2007 8:57 am

Here's the official Boeing press release including a photo release:

http://www.boeing.com/news/releases/2007/q1/070226a_nr.html

~Trades
 
Thorben
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RE: TAM Buys 4 X 777-300ER

Tue Feb 27, 2007 5:59 pm

Quoting MCOflyer (Reply 3):
Didnt they already order the 773ER. I believe these may be options.

To me it seems like that, too. That order has been finalized five times now. Does Boeing need that in order to pretend having a lot of orders?
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PEET7G
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RE: TAM Buys 4 X 777-300ER

Tue Feb 27, 2007 6:27 pm

Quoting Thorben (Reply 22):
To me it seems like that, too. That order has been finalized five times now. Does Boeing need that in order to pretend having a lot of orders?

Stop the bashing... Boeing never announced a firm order with TAM on these 77Ws... they only had a statement when TAM announced their INTENTION to order these planes... on an other note, it is quit clearly written in the news release that the finalized deal is for 4 orders and 4 options and that the 4 orders are already accounted for in the orders list as an unidentified customer... This is the first time they finalized the order, deal with it...  banghead 
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