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chiad
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UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 8:04 am

According to MarketWatch United purchased the recently 65 B737 at 75% off list-price.
Quote:
United Continental Holdings Inc. is buying 65 737s at a reported $22 million each — close to 75% off list price and about half the normal price even for bulk orders, the Goldman report said.

www.marketwatch.com/story/boeing-jus...e-us-dollar-is-too-high-2016-04-01

So that's what it took for fend off the C-series and NEO.
 
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AviatorW6
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 8:56 am

Quoting chiad (Thread starter):
at 75% off list-price

No wonder why they opted for the 737.
I guess it also means that Boeing and Airbus consider the CSeries as a very competitive aircraft. It makes me wonder how the Canadians intend to compete/make the CSeries survive in such circusmtances.

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jetfuel
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 9:03 am

That price is without engines or options
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LPSHobby
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 10:33 am

and what Boeing say to the other airlines that want to buy 737s, they will give the same discount or will they claim a reason to justify this price only to United?
 
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 10:37 am

The bulk of the article is saying that the US Dollar is overvalued and hurting US exporters. The Dollar has raised and maintained 10-30% increases over other stable currencies. This has caused Boeing to have to slash prices and margins to compete with Airbus and Bombardier more than it had to a few years ago. The US dollar having such a high value is going to hurt sales for US exporters. Boeing sales were down last year and I suspect will be down this year. The end of line 737-700s were known to have a low price to make up for the 73G being less efficient than CS300. Competing with a currency disadvantage compared to the competitors made it worse.

There are reasons other than currency that explain the low price. Some may say it is an older design, others may blame the profits with dividends and buybacks that Boeing has been paying its shareholders, and other factors. What I find interesting is how the article is trying block the federal reserve from raising interest rates since at will hurt Boeing even more if the dollar value increases.

[Edited 2016-04-04 03:51:08]
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miller22
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 10:41 am

Quoting jetfuel (Reply 2):
That price is without engines or options

Boeing doesn't sell airplanes without engines.
 
BestWestern
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 10:46 am

Quoting roseflyer (Reply 4):
exporters. The Dollar has raised and maintained 10-30%

The Dollar : Euro price is what it was when the euro was launched.

We've been through this countless times, but the fanboys look for any reason to explain away a 75% discount.
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roseflyer
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 10:53 am

Quoting BestWestern (Reply 6):

The Dollar : Euro price is what it was when the euro was launched.

We've been through this countless times, but the fanboys look for any reason to explain away a 75% discount.

Did you read the article? You can call the author of the article Tim Mullaney a Boeing fanboy if you want. He is a relatively well known economist author/correspondent based in New York. It is a well known economics concept that high currency valuation hurts exporters. The USD to EURO exchange rate has been about 1.1 dollar to Euro for the last year. The US dollar has not been this strong since about 2003. Back then the Euro was still moving quite a bit as it was growing and being established. Over the past 10 years, the dollars to Euros exchange rate has been 10-40% higher. It is not a good time to be a US exporter right now. The demand in China has fallen off and the current exchange rates are forcing US companies to slash prices and margins. The author used this United 737 deal competing against Bombardier as an example of what US manufacturing companies have to do to compete with foreign companies.

3 years ago Airbus CEO was complaining about an overvalued Euro. http://www.4-traders.com/THE-BOEING-...e-Rate-Affecting-Exports-17034967/

Airbus wanted 1.2 to 1.3 USD/Euro. Now things have shifted to 1.1 and Boeing is suffering. Currency doesn't explain everything and the article doesn't claim that to be the case (if so we would see more A350 and CSeries orders) but it has pushed Boeing margins down and sales prices are having to go lower than they historically did according to this article.

[Edited 2016-04-04 04:19:20]
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 11:11 am

Quoting miller22 (Reply 5):
Boeing doesn't sell airplanes without engines.

If you mean literally, well of course you are correct. Difficult to complete the acceptance process with an engine-less aircraft.

Boeing does, for certain customers, allow them to negotiate directly with engine suppliers. They have to, because increasingly the engine acquisition cost includes engine maintenance, some of which may be prepaid, and some of which may be capitalised, depending on the prevailing tax regimes, interest rates and other factors.

In the good old days, Boeing. McD and Lockheed used their standard form contracts, which European manufacturers largely replicated.

Then along came Airbus, and we saw a new degree of flexibility and negotiability, resulting in the Airbus standard form contract.

In the late 70's we even saw a certain USA airline try to use the Airbus standard form contract to buy Boeing aircraft.

Fast forward, and some airlines, like Emirates and Qatar, and most recently IAG, have developed their own standard form contracts.
 
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LAXintl
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 11:27 am

This alleged unit price was reported at the time of the order by several including Leeham.
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Richard28
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 11:42 am

wow! - but 1 and get 3 free!
 
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 12:01 pm

Quoting chiad (Thread starter):
United Continental Holdings Inc. is buying 65 737s at a reported $22 million each — close to 75% off list price and about half the normal price even for bulk orders, the Goldman report said.

You'd think that was sailing close to Predatory Pricing which is of course against the law.
BV
 
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 12:08 pm

Quoting BoeingVista (Reply 11):
Quoting chiad (Thread starter):
United Continental Holdings Inc. is buying 65 737s at a reported $22 million each — close to 75% off list price and about half the normal price even for bulk orders, the Goldman report said.

You'd think that was sailing close to Predatory Pricing which is of course against the law.

Even though those planes were cheap, they are still expected to make a profit over the long term when all the parts and ongoing support costs are factored in. If Boeing makes a profit, even a small one, they aren't going to be violating any of the anti-dumping laws. Undercutting your competitor is not illegal. Dumping excessive inventory on the market to prevent an opportunity for a competitor to sell a product is different. If Bombardier could get their costs down below $22 million per plane, they may have won the order. The problem for them is a new slow running production line, significant development and manufacturing costs and a supply chain that is not moving at the robust high production volumes that the 737 has. I have a feeling that Boeing can probably make a 737-700 for less than Bombardier can make a CS300 given the improvements they have made in their higher volume factory.

Is it unfair or unethical? Maybe. Illegal, probably not.

[Edited 2016-04-04 05:09:03]
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 12:12 pm

Any chance they might go back for some more?
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 12:50 pm

Quoting chiad (Thread starter):
So that's what it took for fend off the C-series and NEO.

Seattle Times had a pretty complete rendition of this, quoting Boeing Commercial Airplanes chief Ray Conner:

Quote:

Conner also told employees that Boeing had lowered its price dramatically to win an order in January from United for 40 current-generation 737s against “aggressive” competition from the new Bombardier CSeries jet.

Conner said Boeing did so specifically to block Bombardier’s new plane.

He recalled how Boeing had lost similar sales battles in the 1990s to the Airbus A320, allowing that jet to gain traction against the 737.

If Bombardier, which has had trouble securing customers for the CSeries, had won the United order, “that would’ve been a validation of this CSeries in the marketplace, I think. So very important for us to win that.”

Industry insiders believe United got its 737-700s, which have a list price of $80 million, for between $22 million and $24 million each.

“Ultimately we won, but I’m going to tell you, we got pushed to the wall,” Conner told his employees.

Ref: http://www.seattletimes.com/business...ns-put-financial-crunch-on-boeing/

Interesting how he cite's Boeing's indifference to Airbus entering the A320 market as justification for crushing BBD.

Now there's no doubt at all that Boeing did go to extremes to keep BBD out of the market.

Quoting roseflyer (Reply 4):
The bulk of the article is saying that the US Dollar is overvalued and hurting US exporters. The Dollar has raised and maintained 10-30% increases over other stable currencies. This has caused Boeing to have to slash prices and margins to compete with Airbus and Bombardier more than it had to a few years ago.

Right, and as you point out, Airbus has had to deal with the opposite for pretty much the entire life of the Euro up till about a year ago. We shall see how Boeing weathers this storm.
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Francoflier
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 1:05 pm

Wait, I though A.net wisdom was that only Airbus gave away airplanes?

  
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rlwynn
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 1:12 pm

That should be illegal and Boeing should be made to pay the sales tax on the list price.
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 1:24 pm

Quoting francoflier (Reply 15):
Wait, I though A.net wisdom was that only Airbus gave away airplanes?

Airbus clearly did back in the A300 days, but a lot of things have changed since then.

Seems Airbus owes Boeing a favor for dealing a huge blow to BBD.
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 1:26 pm

Quoting rlwynn (Reply 16):
That should be illegal and Boeing should be made to pay the sales tax on the list price.

Unless you can prove the planes were sold at a loss, then Boeing has done nothing illegal. In fact, I'm not even sure selling a product at a loss is actually illegal.
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 1:29 pm

Quoting STT757 (Reply 13):
Any chance they might go back for some more?

At those fire sale prices (with the BIG assumption that they're actually above production cost), I think Boeing is only eager enough to sell just enough units to fend off BBD and the C-Series. Boeing plausibly has given UA a cap of how many frames they're willing to sell at this price, beyond that, should be standard-discount for 737-7max instead.

Recent UA has been relatively loyal to Boeing. Boeing's biggest concern now is how to make AS+VX back into "all Boeing" carrier.
 
PATristar
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 1:47 pm

I keep imagine if BBD did not delayed so much the C Series program. It would be a very strong third player on big single aisle aircraft.
 
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 2:01 pm

Quoting PATristar (Reply 20):
I keep imagine if BBD did not delayed so much the C Series program. It would be a very strong third player on big single aisle aircraft.

Boeing must be thinking that it's easier to kill them off with a shot to the head now, rather than dealing with them for decades to come.

Seems that both the Canadian federal government as well as Quebec provincial government have decided to step in and prop up BBD, so Boeing may be wasting its money.
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 2:10 pm

Quoting Revelation (Reply 17):
Airbus clearly did back in the A300 days, but a lot of things have changed since then.

McDonnell Douglas did it, too, when the MD-80 was selling very poorly a la the A300. They gave 20 MD-80s to AA on a trial basis, then AA loved them so much that they bought 200 more. Then, AA inherited 100+ MD-80s from TWA as well.

Quoting a380787 (Reply 19):
Boeing's biggest concern now is how to make AS+VX back into "all Boeing" carrier.

Notice how on the AS integration site, they didn't mention the A32x of VX much. There's still hope for a "proudly all Boeing" AS+VX.
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rta
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 2:17 pm

That's a great deal for United. Shame that was done just to prevent a new competitor for entering the market. And that sucks for the 8000 people about to lose their job at Boeing.

I wonder if DL will be able to manage something similar for their MD88 replacement order.
 
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 2:26 pm

Quoting Revelation (Reply 21):
Seems that both the Canadian federal government as well as Quebec provincial government have decided to step in and prop up BBD, so Boeing may be wasting its money.

Yup, and next, no more Milk Exports!!!!! What have we become?   
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 2:26 pm

Quoting roseflyer (Reply 12):
Even though those planes were cheap, they are still expected to make a profit over the long term when all the parts and ongoing support costs are factored in. If Boeing makes a profit, even a small one, they aren't going to be violating any of the anti-dumping laws. Undercutting your competitor is not illegal.

Well said. I am glad to see this correct info even if we can debate whether profitability is there or not.   
 
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 2:37 pm

Quoting BoeingVista (Reply 11):

You'd think that was sailing close to Predatory Pricing which is of course against the law.

If I was in BBDs shoes, I would have asked the anti-trust authorities to take a closer look at the pricing by Boeing. Clearly this is aimed at keeping the BBD C-series outside the market which is more serious then undercutting for example Airbus price to win a deal.
 
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 2:58 pm

Quoting rta (Reply 23):
that sucks for the 8000 people about to lose their job at Boeing.

But it is probably pretty good for the 72,000 or more people that keep their jobs at Boeing. Plus all of the people at Spirit and other Boeing suppliers. It's all relative.
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 3:09 pm

Quoting scbriml (Reply 18):
In fact, I'm not even sure selling a product at a loss is actually illegal.

Its not, contrary to what many A.net experts like to think (not that I think Boeing is actually selling these at a loss). Businesses do it all the time, as was discussed around the time of UA's order.

Quoting Asiaflyer (Reply 26):
If I was in BBDs shoes, I would have asked the anti-trust authorities to take a closer look at the pricing by Boeing. Clearly this is aimed at keeping the BBD C-series outside the market which is more serious then undercutting for example Airbus price to win a deal.

Not that they would ever do that, but BBD has to be very careful complaining about unfair competition or whatnot considering they basically just got bailed out by the Canadian government and shortly thereafter an order by AC appeared the same day the government coincidentally dropped a lawsuit against AC. BBD's hands are not squeaky clean.
 
UA444
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 3:15 pm

Ive said it before, but I won't be surprised if AA and DL want a similar deal and end up taking it.
 
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 3:52 pm

Quoting roseflyer (Reply 7):
The US dollar has not been this strong since about 2003.

So in 2003 Boeing also discounted that much?
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 3:55 pm

If true, this sell can't be good for airlines with used frames they're wanting to unload or leasing companies as this should significantly drive down the value of used products.

It also can't be good for Airbus as, if Boeing will continue to offer such pricing for end of line orders for however many are left, Airbus will have to accept something similar for CEO that aren't spoken for. Likewise, it will put significant pricing pressure on NEO/MAX.
 
trex8
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 3:57 pm

Quoting okcflyer (Reply 31):
Airbus will have to accept something similar for CEO that aren't spoken for.

I dont think there are any and minimal numbers if they exist and not A319s.
 
chiad
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 4:10 pm

Quoting trex8 (Reply 32):

Quoting okcflyer (Reply 31):
Airbus will have to accept something similar for CEO that aren't spoken for.

I dont think there are any and minimal numbers if they exist and not A319s.

The last I read was that the CEO line was reasonable overbooked and thus Airbus allowed so many conversions to NEO
 
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 4:41 pm

Tough industry. I feel for BBD, but this is almost a perfect analogy to an established carrier launching a fare war when a new competitor tries to enter a market. It's sleazy, and if successful, it hurts customers.

But I'm not sure how you'd write a law to give Boeing any incentive not to do this, and UA not to play Boeing this way. And given that BBD is not a US company, there's also the issue that lawmakers would be loathe to care about its interests anyways.
 
bennett123
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 4:42 pm

I take it these are B737NG.

Soon the price of this type will be a non issue, ditto the A320CEO as both types will be out of production.
 
RDUDDJI
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 5:02 pm

Quoting Polot (Reply 28):
Its not, contrary to what many A.net experts like to think (not that I think Boeing is actually selling these at a loss).

That's not exactly true, but not exactly untrue either.

I'll agree that it's a high standard to violate Robinson-Patman, but according to the FTC:

Quote:

Although proof of a violation of the Robinson-Patman Act often involves complex legal questions, businesses should keep in mind some of the basic practices that may be illegal under the Act. These include:

--below-cost sales by a firm that charges higher prices in different localities, and that has a plan of recoupment;
--price differences in the sale of identical goods that cannot be justified on the basis of cost savings or meeting a competitor's prices; or
--promotional allowances or services that are not practically available to all customers on proportionately equal terms.

Link:
https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/price-discrimination-robinson-patmanAlthough
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slider
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 5:05 pm

Quoting roseflyer (Reply 12):
Is it unfair or unethical? Maybe. Illegal, probably not.
Quoting rlwynn (Reply 16):
That should be illegal and Boeing should be made to pay the sales tax on the list price.

Ah yes, the "competition is illegal and unfair" trope.

These are the comments that happen when a generation of special snowflakes who've gotten participation trophies grows up...
 
Planesmart
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 7:38 pm

Quoting Revelation (Reply 17):
Airbus clearly did back in the A300 days, but a lot of things have changed since then.

Compared to the dirty tricks of three manufacturers, US regulatory bodies, and unions grounding aircraft for petty reasons (like a ceiling or bulkhead mounted video screen not working), good old predatory pricing seems like a walk in the park.
 
A320FlyGuy
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 7:39 pm

I've always wondered what the options list looks like for a commercial aircraft...I'm guessing that it mainly has to do with avionics and galley equipment....I don't imagine that Boeing offers a sport package or heated seats or a panoramic sunroof (well, except for the Aloha Airlines 737, but that was more of a convertible...)  
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Skywatcher
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 9:12 pm

I suspect that BA shareholders are not happy. Boeing stock is down close to 20% in the last year and has been a dog since late 2013.
I think it's a sign of mismanagement when you manage your product (737NG) phase out this badly.
They are dragging all civil aircraft manufacturers down in a race to the bottom.
 
Amiga500
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 9:13 pm

Quoting A320FlyGuy (Reply 39):
I've always wondered what the options list looks like for a commercial aircraft..

A few are:
- Go faster stripes (which can be retrofitted in a paintshop)
- Alloy wheels
- Spoilers (both ground and multi-function spoilers for those that like to go on drag races down runways...)
- Turbo for the engine (a must for any jetA-head)
- Tinted windows
- Video screens for the children in the back
- Some even offer a fancy gearbox
 
trex8
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 9:14 pm

Quoting Skywatcher (Reply 40):
I think it's a sign of mismanagement when you manage your product (737NG) phase out this badly.

History repeats itself, look at the NG ramp up debacle almost 20 years ago.
 
L-188
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Mon Apr 04, 2016 9:58 pm

Quoting miller22 (Reply 5):

Quoting jetfuel (Reply 2):
That price is without engines or options

Boeing doesn't sell airplanes without engines.

Actually I know it as "Client supplied components" and it is a very common practice across several industries.

I used to by valves and valve actuators. Many times I would order a valve from one supplier, have them ship it to an actuator supplier of my choosing and then that company would mount the actuator to it.

For an airline this increases the number of engines it buys, which can lead to volume discounts from the suppliers. In this case for both the engines that are going to be mounted on the new airplanes and for any spare motors they may buy.

Quoting Amiga500 (Reply 41):

Quoting A320FlyGuy (Reply 39):
I've always wondered what the options list looks like for a commercial aircraft..

A few are:
- Go faster stripes (which can be retrofitted in a paintshop)
- Alloy wheels
- Spoilers (both ground and multi-function spoilers for those that like to go on drag races down runways...)
- Turbo for the engine (a must for any jetA-head)
- Tinted windows
- Video screens for the children in the back
- Some even offer a fancy gearbox

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deltal1011man
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RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Tue Apr 05, 2016 2:37 am

Quoting scbriml (Reply 18):
In fact, I'm not even sure selling a product at a loss is actually illegal.

If it is then pretty much every US airline (hell most in the world) are in deeeeeeeeep trouble for most of their history      

Quoting PATristar (Reply 20):

I keep imagine if BBD did not delayed so much the C Series program. It would be a very strong third player on big single aisle aircraft.

Delay or no delay BBD can't offer the pricing AB and B can. This is what is hurting them.
Hard to justify paying more for a new type when you can add to an existing fleet type.

However it does sound like DL is going to bite so that'll be good for BBD.

Quoting Asiaflyer (Reply 26):

If I was in BBDs shoes, I would have asked the anti-trust authorities to take a closer look at the pricing by Boeing.

Why? so you could be laughed at?
Or so those AC orders can be canceled?

Quoting Polot (Reply 28):
Not that they would ever do that, but BBD has to be very careful complaining about unfair competition or whatnot considering they basically just got bailed out by the Canadian government and shortly thereafter an order by AC appeared the same day the government coincidentally dropped a lawsuit against AC. BBD's hands are not squeaky clean.

Exactly. I wouldn't go crying on this when Canadian just put so much pressure on AC to get the place.

Quoting UA444 (Reply 29):

Ive said it before, but I won't be surprised if AA and DL want a similar deal and end up taking it.

I don't see either going for a 73G or 319.
But if AB or B wants to do discounts on 738/739/320/321......
 
a380787
Posts: 4573
Joined: Tue Jul 09, 2013 4:38 pm

RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Tue Apr 05, 2016 2:50 am

Quoting Deltal1011man (Reply 44):
Exactly. I wouldn't go crying on this when Canadian just put so much pressure on AC to get the place.

They also need the folks at Ottawa to continue their somewhat-protectionist aviation regime, so it's a lot of tit for tat. Imagine how pissed AC would be if YYZ is open season for ME3.

A forced CSeries deal might be worth it to keep Porter and Emirates at bay ?
 
Beatyair
Posts: 856
Joined: Mon Feb 10, 2014 9:09 pm

RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Tue Apr 05, 2016 3:18 am

If I could get a 737 for 22 mil, then why would, as an operator, buy a 737MAX at all? Companies will defer or cancel orders and call back and say I want to buy mine for the same price. Boeing already has a back log and now they will never get the max off the ground.
 
a380787
Posts: 4573
Joined: Tue Jul 09, 2013 4:38 pm

RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Tue Apr 05, 2016 3:31 am

Quoting Beatyair (Reply 46):

There are what, 60 orders for the max7 ? Boeing can make it such that the deal only applies to 73G and not any other variant. Even if all 60 max7 go backwards to 73G, that's fine by Boeing too. It'll be an excuse to chop the max7 program and save on certification costs.

Call me synical but I see the max7 really exists just to keep 1 customer happy - WN .... not even for WS.

I firmly believe Boeing is more than willing to offer DL and WN at the same price. All they have to do is ask.
 
User avatar
SAAFNAV
Posts: 603
Joined: Wed Mar 17, 2010 5:41 pm

RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Tue Apr 05, 2016 3:49 am

Quoting slider (Reply 37):

These are the comments that happen when a generation of special snowflakes who've gotten participation trophies grows up...

Best comment ever
CFI/Gr. III, L-382 Loadmaster, ex C-130B Navigator
 
OB1504
Posts: 3930
Joined: Tue Jul 27, 2004 5:10 am

RE: UAL Purchased The 65 B737 At $22 Mill Per Unit.

Tue Apr 05, 2016 4:13 am

Quoting rlwynn (Reply 16):
That should be illegal and Boeing should be made to pay the sales tax on the list price.

Why? No airline ever actually pays the list price.

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