FlyerTalk Forums - View Single Post - Boeing's crucial Canadian boost; AC order sighted as important to manufacturer
Old Sep 17, 2007 | 10:57 am
  #4  
Sebring
 
Join Date: Dec 2003
Location: Toronto, Ontario, Canada
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Originally Posted by tcook052
Sounds like no contingency is built in for significant currency fluctuations between order and delivery, correct? Is that just a cost of doing business Boeing swallows?
Boeing gets paid in US dollars by AC whatever the exchange rate. AC had to hedge, if it so desired, to protect itself against a decline in the C dollar, but at the time this order was placed, the dollar was already on a resurgence against the greenback. It's AC that is the sole beneficiary of the price swing. In fact, to the extent Boeing sources parts abroad, it is paying more for that inventory because of the US dollar's weakness.
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