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Yes these are "non-binding" commitments that are just marketing. Very deceptive but standard practice in aerospace. For example only a fraction of the Concordes
by foobarqux 4y ago
Yes these are "non-binding" commitments that are just marketing. Very deceptive but standard practice in aerospace. For example only a fraction of the Concordes that were committed in this way were actually purchased.
Until the plane is actually flying in the air you should just treat any announcements as misleading (they announced that their test airframe was ready, what, 3-4 years ago?).
- beambot 4y agoIt's not really deceptive, it's just that many people have a poor understanding of the accounting difference between LOIs, contractual bookings, and recognized revenue. These LOIs would not appear on an income statement, balance sheet or P&L... and no one ever suggested otherwise. It's just one signal (of many) that indicate market demand for high-capex products with long lead times.