BBJ777X wrote:This is interesting. So 777-8 is both more efficient and more capable than A35J. I couldn't think of any reason why QF would buy A35J other than Airbus is willing to give a _huge_ discount,
QF CEO AJ has said that both aircraft meet the requirements! Given that statement the "DEAL" offered becomes more important not just price. As I have said before QF have a capital expenditure [capex] problem, do NOT under estimate the effect that will have on the decision. By the "DEAL" I include:
1) Price [of course]
2) Financing to Australian conditions.
Australia has its own set of tax rules covering deperication but also the treatment of different finance methods. There is also the ASX listing rules, there may well be other points under this heading.
3) Structure of the order, do not expect one order for total requirements, won't happen!
The mix of firm orders, options and purchase rights and the price/deposit requirements and conversion conditions attached will be of great importance. Stuffing this up could well lead to the other OEM getting the order.
4) Delivery timeing.
IMHO, I supect QF will want the timeing to be something like this: 4 airframe 2022 [or the first 12 months of deliveries], which will let them start SYD-LHR, 3 more in the next 12 months to start MEL-LHR 3 more in the following 12 months to start JFK for a total firm order of 10. [No suprise if it turns out to be 12 firm]
These points are ALL important. Either OEM could lose the order on any one of these points. Which does make the constant bickering in thread over range/payload/trip cost fairly redundant as we CANNOT know, at this point. what the DEAL will be, neither do QF or the OEMs.