FlyerTalk Forums - View Single Post - OT: Another Big EK Order - Impact On IAG?
Old Nov 13, 2011 | 10:38 am
  #26  
uk1
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Join Date: Jan 2004
Location: UK
Posts: 11,968
Originally Posted by Sixth Freedom
Remember that there are two parties to this deal.

EK and Boeing.

I doubt that Boeing would play ball and go ahead to confirm the order if they did not feel that delivery was likely.
This isn't completely true. They are more accurately considered to be letters of intent. Both sides benefit. There's no downsides.

The manufacturer appears to have a popular product in demand and on back order - this creates market and undermines competition. It also helps protect "list price" because a false impression of demand is created.

The airline appears o be positive and expanding. No cash has changed hands and no manufacturing started. It can be hype where all but competition benefits. In fact another plus for those involved is it puts pressure on competition.

Things aren't always as they seem ......
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