It will be very interesting to see how this EK
Aspects of the order:
1. Short term (early deliveries). If done by "placeholder" aircraft on a relatively low cost lease.
2. A large quantity of airplanes.
3. CASM/fuel burn are the differentiators that EK
is focusing on. Hence, their demand for rather large airframes.
's willingness to split orders. e.g, the possibility of 10 to 20 748's.
Question: Whom else in the next 12 months is bidding out a large widebody order? I'm aware of VA, but no one else other than EK
currently soliciting bids on the scale of dozens of airframes. So quickly we became numb to QF
|Quoting Columba (Reply 65):|
Exactly just look at the numbers of Dc 10s and L1011s airlines in the 1970s and 80s had, now an aircraft of the same size can see up to 80 orders by a single customer. That is amazing.
We a.netters get numbed by the volumes of narrow bodies. Most wide bodies are successful at 300 orders. Any aircraft that breaks 1000 is considered a major success by everyone in the industry.
|Quoting Columba (Reply 67):|
but the A380 delay has nothing to do with performance issues but with the production of the aircraft.
Mostly... there is a weight issue that must still be worked on. So obviously they need to hire more R&D engineers.
Since delivery timing will be of great interest to EK
(previously discussed retirements of A343, A332, 77A, 773, 772ER), I do not think EK
has forever to negotiate. If they can squeeze a further 10% cost cut... it makes a big difference. I have a feeling its like an order for engineering services one of my friends is negotiating. They are stalled at the contract table due to a 2% difference is costs between the business plan and the bids. Since there is no bid without meeting the target ROI, the contract isn't going forward. However, if cost savings can be realized, then the corporate minimum ROI is met... and the purchase goes forward. But no new venture is initiated at most companies unless a certain minimum ROI can be met. These "number run" companies tend to be 'tough nuts' to negotiate with; but I cannot help but notice they are also the companies that do well in the long term.
Many people dislike EK
for being run as a business. So what? From what I can tell in their negotiations, they target a certain ROI on airframe purchases and keep negotiating until something changes to get that ROI. Its about time airlines were run the way most other companies are run.
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