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The article first states that they've optioned a purchase - so I assume they've purchased some sort of call option and Boom are the issuers which would mean tha
by dandermotj 11y ago
The article first states that they've optioned a purchase - so I assume they've purchased some sort of call option and Boom are the issuers which would mean that some money has changed hands.
- D_Alex 11y agoI doubt any money has changed hands (if it has, Boom would trumpet the figure). This is a pure publicity move for both Boom and Virgin. I doubt, tbh, that Virgin rates highly the chances for this to succeed, but they lose nothing by saying that if the plane is as magnificent as promised, they will buy a bunch.
- dandermotj 11y agoIf they purchased an option then Virgin paid for it. Optioning purchases is a common instrument traded in aviation finance. The option to buy this aircraft at some point in the future at a price specified today is worth a lot. The fact that it's a moonshot only means the price of the option would be reduced. If the plane is as magnificent as promised, Boom's order books will be filled for decades and other airlines will be second in line to Virgin.