FlyerTalk Forums - View Single Post - OT: Another Big EK Order - Impact On IAG?
Old Nov 13, 2011 | 10:55 am
  #28  
BOH
All eyes on you!
20 Years on Site
 
Join Date: Apr 2005
Location: UK
Programs: IC Hotels Diamond Elite, BA Nothing
Posts: 8,903
Originally Posted by uk1
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 ......
Indeed - VS's order for A380s for example
BOH is offline