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Air India Paid ~$110 Million Per Boeing 787, Including Engines

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Air India Paid ~$110 Million Per Boeing 787, Including Engines

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Old Jan 8, 2012, 9:46 am
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Air India Paid ~$110 Million Per Boeing 787, Including Engines



I dug this up in a bunch of RFPs that I found on AI's website. I didn't expect to find such interesting information when I started looking...

This really says something about the extremely steep discounts that Boeing and GE gave to early 787 customers...

It also shockingly shows that AI's negotiators showed some competence when agreeing to a purchase price, and they didn't completely overpay.

That competence clearly wasn't there when they posted this information online of course...

http://aeroblogger.com/2012/01/08/ai...er-boeing-787/

Last edited by PVDtoDEL; Jan 8, 2012 at 11:45 am
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Old Jan 8, 2012, 12:11 pm
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Originally Posted by PVDtoDEL
It also shockingly shows that AI's negotiators showed some competence when agreeing to a purchase price, and they didn't completely overpay.
shocking indeed....but then again, its indian nature to bargain....
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Old Jan 8, 2012, 12:11 pm
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Originally Posted by Keyser
shocking indeed....but then again, its indian nature to bargain....
Now if only they could bargain those bilaterals properly... EK owns the Indian market for a reason...
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Old Jan 8, 2012, 3:53 pm
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Originally Posted by PVDtoDEL


I dug this up in a bunch of RFPs that I found on AI's website. I didn't expect to find such interesting information when I started looking...

This really says something about the extremely steep discounts that Boeing and GE gave to early 787 customers...

It also shockingly shows that AI's negotiators showed some competence when agreeing to a purchase price, and they didn't completely overpay.

That competence clearly wasn't there when they posted this information online of course...

http://aeroblogger.com/2012/01/08/ai...er-boeing-787/
This isn't "shockingly" low at all. AI was one of the early customers and got the appropriate discounts. AI, like usual early customers get a 35%-45% discount. The B787 5-6 years ago when AI ordered it was much cheaper as well.

I know from close sources that EK paid about $90-$100 for their XWB's and they weren't even remotely close to being a launch or early customer.
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Old Jan 8, 2012, 3:57 pm
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I always thought the list price of planes by boeing and airbus were like cars were kind of a joke, no one pays nearly that much.
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Old Jan 8, 2012, 4:20 pm
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How much does a 787 go for now?
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Old Jan 8, 2012, 6:40 pm
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Originally Posted by Jacobin777
This isn't "shockingly" low at all. AI was one of the early customers and got the appropriate discounts. AI, like usual early customers get a 35%-45% discount. The B787 5-6 years ago when AI ordered it was much cheaper as well.

I know from close sources that EK paid about $90-$100 for their XWB's and they weren't even remotely close to being a launch or early customer.
Correct. With so few transactions discount is a mythical number. Discount off what? Hardly any major airline pays "list" price. The Govt of India also goes to bat for AI and as does the U.S. Govt helps Boeing in subtle ways.
Some people like to claim that Boeing gets no subsidy from the U.S. Govt, but it gets major subsidies through its defense business. Boeing 747 developped out of defense contract.
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Old Jan 8, 2012, 6:53 pm
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a 15-25% discount is not uncommon. A 50+% discount is unheard of.
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Old Jan 8, 2012, 7:04 pm
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http://www.boeing.com/commercial/prices/

$193,500,000.00

Originally Posted by lallyr
How much does a 787 go for now?
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Old Jan 8, 2012, 8:40 pm
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Originally Posted by Yaatri
Correct. With so few transactions discount is a mythical number. Discount off what? Hardly any major airline pays "list" price. The Govt of India also goes to bat for AI and as does the U.S. Govt helps Boeing in subtle ways.
Some people like to claim that Boeing gets no subsidy from the U.S. Govt, but it gets major subsidies through its defense business. Boeing 747 developped out of defense contract.
Quid Pro Quo...most "win"-though I wish AI was not in control by the Govt.

Originally Posted by PVDtoDEL
a 15-25% discount is not uncommon. A 50+% discount is unheard of.
Really? Have you been in the aviation industry? I actually know what some carriers have paid for some of their planes. 35%-45% isn't uncommon. Nowhere is it listed that Boeing gave AI a 50%+ discount off of list price.

Here is something of interest:

"What caught our eye in the article is the repair bill: US$140m. This is widely reported to be the pricing for the launch customers when the A380 program was launched (though we have no idea if this is QF’s early-bird pricing). Wow."

http://leehamnews.wordpress.com/2012...rn-to-service/

At the time of A380's being sold for $140 m(according to the reference above), "list price" were about $230-$235m (you can fact-find this yourself). That is about a 40% discount calculated from the numbers. Don't be surprised if a few carriers paid even less than that...
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Old Jan 9, 2012, 1:43 am
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The 787s were part of a larger package that included the 777LR etc. 100 mio per aircraft sounds about right, god only knows what was paid in 'commission'.

The first few 787s delivered should have massive rework done on them, ANA is reportedly only going to use them for regional flights because their performance will be far below the parameters originally hawked. If the new 787s cannot fly BOM-NYC or some other ULH AI supposedly bought them for they actually paid too much
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Old Jan 9, 2012, 2:09 am
  #12  
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Originally Posted by oliver2002
The 787s were part of a larger package that included the 777LR etc. 100 mio per aircraft sounds about right, god only knows what was paid in 'commission'.

The first few 787s delivered should have massive rework done on them, ANA is reportedly only going to use them for regional flights because their performance will be far below the parameters originally hawked. If the new 787s cannot fly BOM-NYC or some other ULH AI supposedly bought them for they actually paid too much
Air India will initially receive planes 12 to 15 IIRC. Boeing expects to go down to zero rework by plane no. 63. So sounds right for the pain they will go through!
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Old Jan 9, 2012, 3:21 am
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Originally Posted by PVDtoDEL
A 50+% discount is unheard of.
Maybe you're just not listening hard enough.
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Old Jan 9, 2012, 6:01 am
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This reported price presumably also factors in compensation for delayed delivery?
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Old Jan 9, 2012, 6:26 am
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I doubt it... they probably got a break for the 777s.
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