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PAS19: Day Two Recap - Le Bourget Caught Cold By Massive 737 MAX Order, Airbus Fights On
Day two of the 53rd International Paris Air Show kicked off in a very busy, tense, and competitive fashion for both Airbus and Boeing. Today, however, things shifted in a very surprising manner. Here’s what Day Two of the Paris Air Show brought to the table. (airwaysmag.com) More...
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The order was only an LOI , you can bet they will only be converted into firm orders when IAG is 100% certain that the Max problems have been fixed
If does not take a rocket scientist to guesstimate that the discount at which IAG bought those 200 737s got to be in the 40 or even 50% off range. Boeing is trying desperately to regain the trust of the public, Aviation Authorities from around the world and the Airlines themselves that the infamous Max 8 is a good and trustworthy plane so AAL had a tremendous bargaining position. Any new comers?....mmm hard to see now, maybe later once the testing is complete.
Yes, Boeing almost certainly gave IAG fat discount. But when you already have 5,000 orders for your plane, and your plane has (hopefully) hit rock bottom, it's a "win" if they can just stop the bleeding. Preventing any more cancellations over the next few months before EIS is about as good as they can do.
Interestingly, the IAG is only a Letter of Intent, not an order. And I wouldn't be surprised if there are additional LOIs or orders for the MAX since the queue is so long that it can be more easily amended. Along with the discounts, I would think Boeing would gladly allow favorable cancellation terms in order to secure some orders/LOIs at present.
Interestingly, the IAG is only a Letter of Intent, not an order. And I wouldn't be surprised if there are additional LOIs or orders for the MAX since the queue is so long that it can be more easily amended. Along with the discounts, I would think Boeing would gladly allow favorable cancellation terms in order to secure some orders/LOIs at present.
