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> The aircraft will be delivered between 2030 and 2035. That's some serious long term ordering. Given the general turbulence in the aviation industry over the
by umeshunni 3y ago
> The aircraft will be delivered between 2030 and 2035.
That's some serious long term ordering. Given the general turbulence in the aviation industry over the last decade, I'm wondering how likely it is that all of these will be delivered.
- JimtheCoder 3y agoI could be wrong, but I think they can probably make the initial orders now and sell the production slots to someone else down the line if necessary? Don't aircraft manufacturers secure a bunch of order commitments before production so they can get financing for their manufacturing operations? I don't know the details, but I think it is a lot more complex then just "placing orders to buy airplanes"
- politelemon 3y agoYes normally there is a letter of intent which is simply agreement on price and terms and expiry date, which the media interprets as firm orders. There will still be a bunch of negotiation happening afterwards and and eventually a purchase agreement. There's still more after that but LOI is considered a starting point to say "I'm serious"
- gumby 3y agoI wonder if the order was actually with the airline or with a leasing company (or finance arm of the airline)? Large orders like that usually come from aircraft leasing companies (many airlines don't own all their own aircraft)