Airlines write Boeing a single check for a 737 for a negotiated price that includes engines.
At this point, I have to assume that you either remain confused or are deliberately missing the point.
And as a practical matter, no one
writes "just one check." Payments are made in a milestone format, typically 1/3 at contract signing, 1/3 at when the 1st metal is bent & 1/3 on delivery. For each airframe. This is, of course, completely out the window in the case of a lease.
If you like, you can sift through this site —here and in Tech/Ops— but there are piles of threads that cover this specific issue.
I’m almost 100% certain that was not the case with this purchase. Maury, the CEO discussed in length that Boeing offered a great deal on the 737s, but the engine manufactures were the harder negotiations price wise. Whether Allegiant writes 1 or 2 checks I don’t know, but I do know for a fact negations took place with GE on the engine platform. Not to mention if you don’t negotiate the engines separately, how the heck do you acquire and purchase spares???
Correct. So I looked into this some more in the intervening hours, and yes, G4 did in fact negotiate extensively with CFM in this case. They did get a better price than they would have had they gone Airbus & as well, they have also only one Powerplant OEM to deal with vs the two they would have had they gone with a 320/220 combination. It is still likely that the superior operating economics of a 220/320 fleet would have overcome that issue, but not against steep BCA discounts and almost immediate availability.
In a case like this, CFM will have motive to pressure BCA for a sale, as these are more units delivered, vs having to share a 320/220 split with Pratt —best case, that is. If I were CFM, I would also have forced BCA to make this happen. They did the right thing.
Like I said before, maybe G4 didn't like Pratt's price on the A220, and A320NEO engines. And if G4 sticks with CFM, then where does that leave the engines on the A220? Imagine these and numerous other issues made the Boeing package better for G4's needs.
CFM almost doubles the number of 'plants they sell thru BCA vs the best
possible outcome with an Airbus order. They likely did not move much on price with G4 directly, but it is a certainty that they exerted the right pressure in the right places to force BCA to make this happen.
CFM were absolutely motivated sellers here.
To be clear, I am certain it is the same WRT Pratt & Airbus. The difference being that Airbus simply are not as easy for PW to pressure or work with as BCA were for CFM.