All the time, I cover aircraft orders on the blog, whereby airlines or aircraft leasing companies place orders for new planes. I’ll often mention how an airline orders ”up to” a certain number of jets, including firm orders and options.
Continue reading: Aircraft Firm Orders Vs. Options: What’s The Difference, Really?
Share your questions, experiences, and thoughts below.
Another aspect of aircraft production are "white tails".
At the end of TriStar production, Lockheed had produced several aircraft with no orders or cancelled orders. However, Lockheed wanted to finish these units due to parts or engines on hand. If I remember correctly, Lockheed eventually sold these units (3 to 5) at substantial discounts to close out the line.
(I still miss the TriStar)
Could it be that Airbus is delivering new and uncontroversial airframes whilst Boeing are not?
Just to add a little wrinkle on the LOI/MOU topic, usually these include already most of the T&C for the aircraft itself (delivery slots, price etc.) but not all conditions (like support conditions, training etc.). Also Airline already pay some amount when they sign a LOI or MOU.
Thank you very much! I can see how an option (in particular if it’s free) is great for the airline - all upside no downside. But why do manufacturers agree to this? To keep regular customers sweet - or is there more to it (e.g. additional free options are a sort of “discount” for firm orders)?
So as with the late 73Gs, Boeing sold them off at a huge discount to X airline as a hunt against the A220 spread.