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> Of course Boeing want to deliver the planes, otherwise they get hit by significant late delivery penalties. How is it that they can't pass those on to GE? Yo

by JackFr 8y ago

> Of course Boeing want to deliver the planes, otherwise they get hit by significant late delivery penalties. How is it that they can't pass those on to GE? You'd have to figure that if you've got your own SLA, you'd want an SLA on upstream providers.

cma 8y ago
Maybe GE has offered to pay them a huge amount if Boeing can avoid hitting GE with the SLA penalties. From Boeing's POV, the lost profit of not getting paid off by GE would be as bad as the loss from not having an SLA in place with GE.
- anamexis 8y ago
  So GE would avoid paying SLA penalties by paying them an amount equal to the SLA penalties?
  - cma 8y ago
    I shouldn't have said "as bad". I'm sure they would take some hit. Maybe half on average, I'm not sure what negotiation theory would say.