IAG signs LOI for 200 737MAX - some for BA LGW
Jul 12, 2019, 3:57 am
#271
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I’ve just got back from a Seattle trip.
The 737 backlog is visibly striking; green fuselages stacked in long lines on railway lines far downstream from Renton, many stored up at Paine Field, the car parking lot at BFI is absolutely full, the fuel testing line at Renton is stuffed with new builds all wrapped up for long term storage.
It appears what is keeping them ticking over are 77Fs for FedEx, the Dreamliner line and the Poseidon, which they seem to be cranking out at an almighty pace.
BFI employee car park:
The 737 backlog is visibly striking; green fuselages stacked in long lines on railway lines far downstream from Renton, many stored up at Paine Field, the car parking lot at BFI is absolutely full, the fuel testing line at Renton is stuffed with new builds all wrapped up for long term storage.
It appears what is keeping them ticking over are 77Fs for FedEx, the Dreamliner line and the Poseidon, which they seem to be cranking out at an almighty pace.
BFI employee car park:
Jul 12, 2019, 4:20 am
#272
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The images of the 737s parked in the employee car parks are somewhat surreal.
https://cimg9.ibsrv.net/gimg/www.fly...e5224b2530.jpg
https://cimg9.ibsrv.net/gimg/www.fly...e5224b2530.jpg
In all seriousness, though, the answer to that may also be the answer to Wong Jnr's observation.
Jul 12, 2019, 4:50 am
#273
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Jul 12, 2019, 4:53 am
#274
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Jul 12, 2019, 8:19 pm
#278
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From OMAAT IAG CEO explains 737 max order
except a letter of intent isn't an order!
Appears Willie is more bothered about airbus delays re Neo orders and is wanting to presurise them with this supposed 'order' for the MAX/
I think Airbus knows what is going on and won't do too much to appease Willie. Boeing also knows this and is just playing the game as well.
Where are the grown-ups?
except a letter of intent isn't an order!
Appears Willie is more bothered about airbus delays re Neo orders and is wanting to presurise them with this supposed 'order' for the MAX/
I think Airbus knows what is going on and won't do too much to appease Willie. Boeing also knows this and is just playing the game as well.
Where are the grown-ups?
Jul 13, 2019, 2:03 am
#279
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Appears Willie is more bothered about airbus delays re Neo orders and is wanting to presurise them with this supposed 'order' for the MAX/
I think Airbus knows what is going on and won't do too much to appease Willie. Boeing also knows this and is just playing the game as well.
I think Airbus knows what is going on and won't do too much to appease Willie. Boeing also knows this and is just playing the game as well.
If anyone feels that Airbus will concede discounts, speed ups or whatever just because IAG are signing an LoI which is merely associating their name with a currently toxic model which looks unlikely to be deliverable within the times it states, they are about as realistic as those people who come to FT to say that they have booked two separate itineraries with one hour in between them, miss their BA departure because their first flight got delayed by half an hour, and then go to BA to shout that BA owes them reaccommodation and compensation and threaten to write to their solicitor if BA does not indulge.
There is no worse negotiating position than over-estimating and over-playing your hand when the other person has all the cards that matter. You merely come across as incompetent and ill-informed and risk having to stick to your threat which you never intended to in the first place if you do not wish to lose face and credibility for many years to come.
Jul 13, 2019, 4:15 am
#280
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I'm thinking that the LOI was basically to cut Ryanair off from slipping in and buying a bunch of aircraft at low prices like they have in the past after a major news event occurred.
Jul 13, 2019, 4:39 am
#281
Join Date: Aug 2013
Posts: 8,777
Doubt it was that. Ryanair already has a huge order for the Max so unlikely they’d be piling in for more right now...
Jul 13, 2019, 9:48 am
#282
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I do get the feeling Willie is still smarting at not getting more A380s at the price he wanted. Whilst there is undoubtedly an element of opportunism in this LOI., I also think this is a deliberate and very public case of picking up his toys and walking away from Airbus to remind them they do not have anything like preferred supplier status.
Competition is good, after all...
Competition is good, after all...
Jul 13, 2019, 1:17 pm
#283
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I do get the feeling Willie is still smarting at not getting more A380s at the price he wanted. Whilst there is undoubtedly an element of opportunism in this LOI., I also think this is a deliberate and very public case of picking up his toys and walking away from Airbus to remind them they do not have anything like preferred supplier status.
Competition is good, after all...
Competition is good, after all...
Jul 13, 2019, 3:55 pm
#284
Join Date: Sep 2016
Posts: 262
I do get the feeling Willie is still smarting at not getting more A380s at the price he wanted. Whilst there is undoubtedly an element of opportunism in this LOI., I also think this is a deliberate and very public case of picking up his toys and walking away from Airbus to remind them they do not have anything like preferred supplier status.
Competition is good, after all...
Competition is good, after all...
Where was WW when Airbus needed IAG to buy more A380s to keep the line alive until possible neo decision was made? BA was clearly looking into that. Why keep ordering 77Ws when you'll be receiving A35Ks and could very well order A359s instead and kickstarting the 772s replacement cycle? And was the 777-9 order to spite airbus instead of more A35Ks or a regret for not ordering more A380s? Or was it political, like some of 77Xs orders are?
If WW is playing games with Airbus and mad with them I'm pretty sure Airbus is not happy as well, not only there isn't a single widebody order in sight for Airbus in the near future, not only BA keeps adding Boeing's at will, be it 787-10s, 77Ws or 777-9s but now also gave Boeing the maintenance contract for its Airbus short haul fleet. And despite the short haul being the cash cow for airplane makers due to their impressive volume, the big bucks are made in the widebodies.
So I'm not sure what's to gain with this LoI or with WWs latest comments. Yes, it will look good in IAGs finance reports but it will not make Airbus lower their prices or be friendlier, especially considering the widebody and maintenance situation.
Jul 13, 2019, 5:19 pm
#285
Join Date: Nov 2010
Posts: 5,597
But if you look at the big picture, it makes no sense. Yes, Airbus has the big pie in the short haul with the A32X, but what about the long haul?
Where was WW when Airbus needed IAG to buy more A380s to keep the line alive until possible neo decision was made? BA was clearly looking into that. Why keep ordering 77Ws when you'll be receiving A35Ks and could very well order A359s instead and kickstarting the 772s replacement cycle? And was the 777-9 order to spite airbus instead of more A35Ks or a regret for not ordering more A380s? Or was it political, like some of 77Xs orders are?
If WW is playing games with Airbus and mad with them I'm pretty sure Airbus is not happy as well, not only there isn't a single widebody order in sight for Airbus in the near future, not only BA keeps adding Boeing's at will, be it 787-10s, 77Ws or 777-9s but now also gave Boeing the maintenance contract for its Airbus short haul fleet. And despite the short haul being the cash cow for airplane makers due to their impressive volume, the big bucks are made in the widebodies.
So I'm not sure what's to gain with this LoI or with WWs latest comments. Yes, it will look good in IAGs finance reports but it will not make Airbus lower their prices or be friendlier, especially considering the widebody and maintenance situation.
Where was WW when Airbus needed IAG to buy more A380s to keep the line alive until possible neo decision was made? BA was clearly looking into that. Why keep ordering 77Ws when you'll be receiving A35Ks and could very well order A359s instead and kickstarting the 772s replacement cycle? And was the 777-9 order to spite airbus instead of more A35Ks or a regret for not ordering more A380s? Or was it political, like some of 77Xs orders are?
If WW is playing games with Airbus and mad with them I'm pretty sure Airbus is not happy as well, not only there isn't a single widebody order in sight for Airbus in the near future, not only BA keeps adding Boeing's at will, be it 787-10s, 77Ws or 777-9s but now also gave Boeing the maintenance contract for its Airbus short haul fleet. And despite the short haul being the cash cow for airplane makers due to their impressive volume, the big bucks are made in the widebodies.
So I'm not sure what's to gain with this LoI or with WWs latest comments. Yes, it will look good in IAGs finance reports but it will not make Airbus lower their prices or be friendlier, especially considering the widebody and maintenance situation.