Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR
VV wrote:This obsession about containers is just ridiculous.
marcogr12 wrote:Can they just cancel the LOI for 200 MAX if they get a better offer from Airbus,despite the fact that, as many posters have said WW, has some preference to Boeing a/c? Are there no binding clauses that would incur penalties in case this happens?Or could they just "trade" this deal for other Boeing long-haul a/c and go back to Airbus for short-haul (again only if Airbus decides to fight back with an offer they can't refuse)?
scbriml wrote:VV wrote:This obsession about containers is just ridiculous.
Tell BA.![]()
You've been told multiple times that T5 is all containerised. Walsh stated that the MAX would be used by BA at Gatwick but not at Heathrow. So, in summary, the "obsession" with containers at Heathrow clearly isn't ridiculous to BA.
JetBuddy wrote:I think it's a bit weird to order 200 aircraft from one manufacturer - without the other manufacturer even knowing about it.
That leads to one of two conclusions:
1. Either the deal is so good it's impossible to beat.
2. It's a tactic to negotiate an even better deal on the other side of the aisle.
And it's not the first one.
https://www.bloomberg.com/news/articles ... 7-max-deal
par13del wrote:PlymSpotter wrote:As it's turning out there wasn't a competitive process involved in the order, then it is unsurprising that a lot of investors and traders are bearish on IAG.
But that being said, because of this I'm hearing a lot of views that isn't a real order to be taken seriously at this point, and that the competitive process with Airbus hasn't yet begun. If so, interesting positioning by IAG - it puts them in a very strong negotiating position.
So you expect that once Airbus puts in their bid Boeing is going to tear up their LOI and commence negotiations?
I assume that a price is already in the LOI and IAG have agreed to it, based on past principle, IAG should be using this time to secure financing to convert the LOI to a contract.
If they wanted to play Boeing off against Airbus all they had to do was request a RFP or leak some news of their intent.
Now if the thought is that by not going RFP they keep the EU governments out of any influence peddling.........
Revelation wrote:PlymSpotter wrote:'Beat these terms or we'll convert the LOI'.
Easier said than done.
Boeing has the 200 order hole in its production calendar due to Jet Airways departing the scene and Airbus has customers scurrying for slots due to the value that the A321XLR offers.
Believe it or not, 737-8 and -10 also are very competitive and in some aspects superior aircraft, depending on what routes you intend to use them on.
Airbus simply might not be able to match schedule / price / performance.
It could be a short negotiation.
But for now a bit of FUD goes a long way.
JerseyFlyer wrote:WW was vocal in criticising Airbus over neo delivery delays, which may play into the non-competitive LOI.
But there was nothing in IAG's most recent capital markets presentation about 200 737s on the immediate horizon.
PlymSpotter wrote:They also potentially have the LionAir order at risk.
I'm in no way doubting the competitiveness of the MAX - it clearly works well for some airlines, especially where cargo isn't a big consideration. But I odn't think we have seen the end of this competition, and I don't think IAG really wanted it any other way.
VV wrote:scbriml wrote:VV wrote:This obsession about containers is just ridiculous.
Tell BA.![]()
You've been told multiple times that T5 is all containerised. Walsh stated that the MAX would be used by BA at Gatwick but not at Heathrow. So, in summary, the "obsession" with containers at Heathrow clearly isn't ridiculous to BA.
Haven't they just signed an LoI for 737?
MrHMSH wrote:VV wrote:scbriml wrote:
Tell BA.![]()
You've been told multiple times that T5 is all containerised. Walsh stated that the MAX would be used by BA at Gatwick but not at Heathrow. So, in summary, the "obsession" with containers at Heathrow clearly isn't ridiculous to BA.
Haven't they just signed an LoI for 737?
They have indeed... but according to Walsh: the 737s would not be used at LHR T5, because T5 is containerised and the 737 doesn't accommodate that. They'll be used at LGW which isn't containerised, and by VY/LV.
In general the container advantage is overstated, for sure, but in this specific example, it really is the case that containerless aircraft won't be seen at T5 en-masse.
VV wrote:MrHMSH wrote:VV wrote:
Haven't they just signed an LoI for 737?
They have indeed... but according to Walsh: the 737s would not be used at LHR T5, because T5 is containerised and the 737 doesn't accommodate that. They'll be used at LGW which isn't containerised, and by VY/LV.
In general the container advantage is overstated, for sure, but in this specific example, it really is the case that containerless aircraft won't be seen at T5 en-masse.
T5, T3 or whatever, that's two terminals in London among hundreds of other airports.
It would be weird if the receiving end refuses to deal with containers.
JetBuddy wrote:I think it's a bit weird to order 200 aircraft from one manufacturer - without the other manufacturer even knowing about it.
That leads to one of two conclusions:
1. Either the deal is so good it's impossible to beat.
2. It's a tactic to negotiate an even better deal on the other side of the aisle.
And it's not the first one.
https://www.bloomberg.com/news/articles ... 7-max-deal
OA940 wrote:Ah fanboys. Sometime's I'm really glad I'm not one.
Back on topic, this is a humongus order and a huge deal for Boeing. I wonder if that means no more buses for IAG, or if they simply wanted to expand fast and they found convenience in the MAX, with the cancelled orders and Jet going under leaving quite a few empty slots
VV wrote:scbriml wrote:VV wrote:This obsession about containers is just ridiculous.
Tell BA.![]()
You've been told multiple times that T5 is all containerised. Walsh stated that the MAX would be used by BA at Gatwick but not at Heathrow. So, in summary, the "obsession" with containers at Heathrow clearly isn't ridiculous to BA.
Haven't they just signed an LoI for 737?
scbriml wrote:VV wrote:scbriml wrote:
Tell BA.![]()
You've been told multiple times that T5 is all containerised. Walsh stated that the MAX would be used by BA at Gatwick but not at Heathrow. So, in summary, the "obsession" with containers at Heathrow clearly isn't ridiculous to BA.
Haven't they just signed an LoI for 737?
I can't help you if you can't/won't understand Walsh's statement regarding Heathrow and the 737.
Shrewfly wrote:Ok, I'm thinking outside the box here, and I know nothing about the economics of airlines buying aircraft. So I expect to be shot down... but
We are presuming these aircraft are replacements for the IAG airlines, and I expect some of them will be, but is there any reason IAG couldnt start up a new low-cost 737 only carrier? New brand, new pricing structure, new route network away from the big hubs. In my mind it kind of makes sense. We've seen short haul BA reduce service standards to compete on price, but the Heathrow/Gatwick focus, and the expectation of a BA customer means the price is nearly always higher than say Wizzair out of Luton or Ryanair at Stansted.
I doubt IAG will have ever had a chance to get new aircraft this cheap before, so is it possible theyve done it to take a punt at a new market?
MarkusMUC wrote:I my view Boeing and airliners which fly 737 Max have a real problem.
Yesterday my wife said "I don't want to fly BA" in autumn (although BA its her favourite airline).
I asked: "Why?"
She said: "British Airways bought 737 Max".
I said: "British Airways won't fly 737 Max in autumn".
My conclusion:
When ordinary passengers (normally without fear of flying) fears the 737 Max, then the image of Boeings 737 Max is completely destroyed and it will impact on bookings.
In my view Boeing and its 737 Max customers will need a longer period without any 737 Max crashes to re-establish trust in 737 Max.
Revelation wrote:Boeing has the 200 order hole in its production calendar due to Jet Airways departing the scene and Airbus has customers scurrying for slots due to the value that the A321XLR offers.
Airbus simply might not be able to match schedule / price / performance.
ACATROYAL wrote:This order is a Big mistake. The 737NG is a great plane, the 737-800 is legendary!! The Max series is an engine gone too far, so many pilots have commented on that they feel uncomfortable flying it, controls and response seems off, engineers discuss how it is flawed and yet due to some deep discounted pricing and arm twisting by Boeing we the public we be forced to fly in it with certain airlines.
I no longer trust Boeing and will always ask to be booked on another flight if I find out my flight will be on a Max plane.
ACATROYAL wrote:This order is a Big mistake. The 737NG is a great plane, the 737-800 is legendary!! The Max series is an engine gone too far, so many pilots have commented on that they feel uncomfortable flying it, controls and response seems off, engineers discuss how it is flawed and yet due to some deep discounted pricing and arm twisting by Boeing we the public we be forced to fly in it with certain airlines.
I no longer trust Boeing and will always ask to be booked on another flight if I find out my flight will be on a Max plane.
RandWkop wrote:https://amp.independent.ie/business/irish/big-bet-on-737-max-a-sign-of-willie-walshs-loyalty-38241793.html
An article painting Willie Walsh as a Boeing loyalist.
When Ray Conner retired as head of Boeing's commercial aircraft business in 2017, the company threw a farewell party for its lifelong employee. Among the speakers: Willie Walsh, who runs the IAG airline group and had built a close rapport over the years with both Mr Conner and Boeing, having spent almost two decades piloting 737 planes himself.
Mr Walsh's message was that relationships matter, both between individuals and companies.
In 2013, with Boeing's 787 Dreamliner grounded because of problems with lithium batteries, Mr Walsh doubled down and ordered 18 additional jets, topping up an earlier purchase of the model in 2007.
This time with the Max, Mr Walsh personally got involved in the aircraft review, testing the proposed upgrades in a flight simulator near London's Gatwick airport about four weeks ago and approving of the changes he experienced first hand. After the deal was announced, he heaped praise on Boeing and said he'd get on a Max the next day if it were in operation.
ACATROYAL wrote:This order is a Big mistake. The 737NG is a great plane, the 737-800 is legendary!! The Max series is an engine gone too far, so many pilots have commented on that they feel uncomfortable flying it, controls and response seems off, engineers discuss how it is flawed and yet due to some deep discounted pricing and arm twisting by Boeing we the public we be forced to fly in it with certain airlines.
I no longer trust Boeing and will always ask to be booked on another flight if I find out my flight will be on a Max plane.
hongkongflyer wrote:MarkusMUC wrote:I my view Boeing and airliners which fly 737 Max have a real problem.
Yesterday my wife said "I don't want to fly BA" in autumn (although BA its her favourite airline).
I asked: "Why?"
She said: "British Airways bought 737 Max".
I said: "British Airways won't fly 737 Max in autumn".
My conclusion:
When ordinary passengers (normally without fear of flying) fears the 737 Max, then the image of Boeings 737 Max is completely destroyed and it will impact on bookings.
In my view Boeing and its 737 Max customers will need a longer period without any 737 Max crashes to re-establish trust in 737 Max.
In reality, no ordinary passengers will pay attention to whether they are flying 737 Max months after the grounding is lifted.
AND, BA can always choose not to the model operating the flight on the website if they want (and if the MAX really hurting the booking numbers).
Shrewfly wrote:I wouldnt be so sure
There were people actively avoiding DC10s at one point, and in this day of instant communication and mass media, people have easy access to news and are far more aware than they were back then.
PlymSpotter wrote:WayexTDI wrote:Not sure which shares you're talking about; but Airbus is slightly up right now, so I guess investors are not too worried about losing this potential order...
IAG's shares dropped quite substantially after the LOI was announced. They have since recovered, but it is a sign that the markets were not bullish on the news.
As it's turning out there wasn't a competitive process involved in the planned order, then it is unsurprising that a lot of investors and traders are bearish on IAG.
But that being said, I'm hearing a lot of views that this isn't a real order to be taken seriously at this point, and that the competitive process with Airbus hasn't yet begun. If so, interesting positioning by IAG - it puts them in a very strong negotiating position. 'Beat these terms or we'll convert the LOI'.
Shrewfly wrote:hongkongflyer wrote:MarkusMUC wrote:I my view Boeing and airliners which fly 737 Max have a real problem.
Yesterday my wife said "I don't want to fly BA" in autumn (although BA its her favourite airline).
I asked: "Why?"
She said: "British Airways bought 737 Max".
I said: "British Airways won't fly 737 Max in autumn".
My conclusion:
When ordinary passengers (normally without fear of flying) fears the 737 Max, then the image of Boeings 737 Max is completely destroyed and it will impact on bookings.
In my view Boeing and its 737 Max customers will need a longer period without any 737 Max crashes to re-establish trust in 737 Max.
In reality, no ordinary passengers will pay attention to whether they are flying 737 Max months after the grounding is lifted.
AND, BA can always choose not to the model operating the flight on the website if they want (and if the MAX really hurting the booking numbers).
I wouldnt be so sure
There were people actively avoiding DC10s at one point, and in this day of instant communication and mass media, people have easy access to news and are far more aware than they were back then.
There probably wont be enough pax trying to avoid the MAX to make a difference, but some will. I'd be amazed if Boeing didnt rebrand the model mind
ACATROYAL wrote:This order is a Big mistake. The 737NG is a great plane, the 737-800 is legendary!! The Max series is an engine gone too far, so many pilots have commented on that they feel uncomfortable flying it, controls and response seems off, engineers discuss how it is flawed and yet due to some deep discounted pricing and arm twisting by Boeing we the public we be forced to fly in it with certain airlines.
I no longer trust Boeing and will always ask to be booked on another flight if I find out my flight will be on a Max plane.
AirbusA6 wrote:Alternatively, if the MAX is still a dog, then they will presumably just cancel the order anyway.
AirbusA6 wrote:so the max is grounded another 3 years? Wow!As IAG won't receiv their MAXes for 3 years, the assumption for them is that the problems will be fixed by then, and thousands will be flying safely
Alternatively, if the MAX is still a dog, then they will presumably just cancel the order anyway.
oschkosch wrote:AirbusA6 wrote:so the max is grounded another 3 years? Wow!As IAG won't receiv their MAXes for 3 years, the assumption for them is that the problems will be fixed by then, and thousands will be flying safely
Alternatively, if the MAX is still a dog, then they will presumably just cancel the order anyway.
Gesendet von meinem SM-G950F mit Tapatalk
noviorbis77 wrote:ACATROYAL wrote:This order is a Big mistake. The 737NG is a great plane, the 737-800 is legendary!! The Max series is an engine gone too far, so many pilots have commented on that they feel uncomfortable flying it, controls and response seems off, engineers discuss how it is flawed and yet due to some deep discounted pricing and arm twisting by Boeing we the public we be forced to fly in it with certain airlines.
I no longer trust Boeing and will always ask to be booked on another flight if I find out my flight will be on a Max plane.
This hysteria is not necessary.
The whole sorry grapes on this thread from some posters is tragic.
SIVB wrote:Revelation wrote:Boeing has the 200 order hole in its production calendar due to Jet Airways departing the scene and Airbus has customers scurrying for slots due to the value that the A321XLR offers.
Airbus simply might not be able to match schedule / price / performance.
I think you are right. It’s not only a matter of economics, but also availability. Boeing was able to provide better slots on top of a good price. Airbus simply cannot match at this time, and IAG saw a chance to get a sweet deal. There’s no need for a RFP even if IAG is a traded company, and I believe shareholders will back this decision.
Vladex wrote:There is always availability. Look at all these conversion to XLR and suddenly there is at least a hundred slots until 2023
ACATROYAL wrote:noviorbis77 wrote:ACATROYAL wrote:This order is a Big mistake. The 737NG is a great plane, the 737-800 is legendary!! The Max series is an engine gone too far, so many pilots have commented on that they feel uncomfortable flying it, controls and response seems off, engineers discuss how it is flawed and yet due to some deep discounted pricing and arm twisting by Boeing we the public we be forced to fly in it with certain airlines.
I no longer trust Boeing and will always ask to be booked on another flight if I find out my flight will be on a Max plane.
This hysteria is not necessary.
The whole sorry grapes on this thread from some posters is tragic.
Its not Hysteria or anything else, just reality of the situation, if this was a easy fix then it would of happened already... its more serious than we are being told... I'm just exercising my right to choose what to fly...to me action speaks louder than words. Go ahead and listen to the FAA and Boeing say its all fixed and ready to fly, they never lied before...
ACATROYAL wrote:noviorbis77 wrote:ACATROYAL wrote:This order is a Big mistake. The 737NG is a great plane, the 737-800 is legendary!! The Max series is an engine gone too far, so many pilots have commented on that they feel uncomfortable flying it, controls and response seems off, engineers discuss how it is flawed and yet due to some deep discounted pricing and arm twisting by Boeing we the public we be forced to fly in it with certain airlines.
I no longer trust Boeing and will always ask to be booked on another flight if I find out my flight will be on a Max plane.
This hysteria is not necessary.
The whole sorry grapes on this thread from some posters is tragic.
Its not Hysteria or anything else, just reality of the situation, if this was a easy fix then it would of happened already... its more serious than we are being told... I'm just exercising my right to choose what to fly...to me action speaks louder than words. Go ahead and listen to the FAA and Boeing say its all fixed and ready to fly, they never lied before...