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>American has paid a non-refundable deposit on the initial 20 aircraft. I guess that's not nothing given how these sorts of contracts usually give the big name
by bragr 4y ago
>American has paid a non-refundable deposit on the initial 20 aircraft.
I guess that's not nothing given how these sorts of contracts usually give the big name brand company lots of outs if the speculative company goes bust, but by bragging about it without specifying the amount, I'm guessing it's a low amount.
- flybrand 4y agoCompanies love low cost R&D that doubles as low cost marketing!
- gitfan86 4y agoAlso I'm assuming it is hard to do this kind of project internally because it seems so cool. A lot of employees would be upset if they were not allowed to take part.
- hef19898 4y agoNot that American Airlines ever was in the business of developing or building aircraft in the first place.
- atdrummond 4y agoI will say that I’ve seen plenty of “non-refundable” contracts in this industry (see Qatar’s ongoing tiff with Airbus over coating peeling issues) result in either side unilaterally cancelling delivery of airframes. It would really come down to what exactly went wrong whether or not AA could truly couldn’t claw that deposit back.
- hermitdev 4y agoI'm pretty sure it's nonrefundable from the stance of AA can't just change its mind and get its money back. If Overture fails to deliver on certain metrics, I'd be willing to bet AA has a refundable out.
- atdrummond 4y agoExactly - but my guess is that plenty of those metrics are assessed before delivery, such as type certification.