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IAG signs LOI for 200 737MAX - some for BA LGW

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IAG signs LOI for 200 737MAX - some for BA LGW

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Old Jun 20, 2019, 3:35 am
  #151  
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Originally Posted by Dubh
Well Airbus chalked up a 50 with AA for the 321XLR. Another market segment where Boeing are not at the races...
New order for 20; the other 30 are conversions from an existing A321neo order
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Old Jun 20, 2019, 3:56 am
  #152  
 
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Originally Posted by Jagboi
I'm also an Engineer, but after listening to interviews from some of those at/formerly at Boeing, I'm not so confident. Lots of stories of extreme pressure being exerted to get things done and out the door, with defects being overlooked. One quality manager talked about parts that failed QC and being put in the defective bin for scrapping being pulled out; the defective marker paint being scrubbed off by a manager and the part installed on a plane, as they didn't have a replacement at hand. The priority was to get planes out the factory door at all costs.
My experience is that in business, fails come when management processes break down, get over-ridden for the sake of saving some money, or for short term expediency, and quick fixes that should never have become permanent but do. I will leave out the completely bonkers brain farts senior managers occasionally come out with. The buck always stops when a manager over-rides process.

Boeing strikes me as a company run by accountants who are doing a great job of obliterating the engineering process safety valves that exist within the business. Lack of documentation, mis-representing systems, self-certification with minimal oversight because the US Congress cut funding. These accountants are not the first. I was going to put a humorous comment on TEPCO here but these days people are way too over-sensitive.

I also qualified as a pilot, albeit non-commercially, and flown some dodgy aircraft, no fun when you get to 3K feet and your single engine decides to take a holiday. So personally I will not be getting on a 737 Max, or any other name they call it any time soon, and if I had known about the DC10s before their crashes would not have flown on them either.

As an aside I went to a college producing some of the leading aerospace engineers in the business today, and I think one of the key differences between them and more modern day counterparts is they are more practical rather than theoretical engineers. They have more real world skills rather than CAD-CAM desk based skills
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Old Jun 20, 2019, 4:20 am
  #153  
 
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I only fly from LGW for leisure. So I'd be taking not only myself but my family with me typically.

Will therefore watch developments with great interest. Not saying yay or nay on flying on them yet - I think it's too early to form a useful opinion imho.

But for comparison I'm on the A321 next time out
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Old Jun 20, 2019, 5:38 am
  #154  
 
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Originally Posted by Dubh
Well Airbus chalked up a 50 with AA for the 321XLR. Another market segment where Boeing are not at the races...
Not to downplay the significance of the AA order, but 30 were conversions from an existing order. So, a net increase of 20 overall.
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Old Jun 20, 2019, 5:42 am
  #155  
 
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Originally Posted by TedToToe

Not to downplay the significance of the AA order, but 30 were conversions from an existing order. So, a net increase of 20 overall.
Didn't realise. I did ask the question over on the AA page, but no one answered. Are these variants scheduled to be assembled in Alabama?
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Old Jun 20, 2019, 6:57 am
  #156  
 
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Originally Posted by Prospero
New order for 20; the other 30 are conversions from an existing A321neo order
Not quite correct. New order of 50 made up of 30 options converted plus an additional 20 The 30 options were never booked as an order
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Old Jun 20, 2019, 6:59 am
  #157  
 
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Originally Posted by TedToToe

Not to downplay the significance of the AA order, but 30 were conversions from an existing order. So, a net increase of 20 overall.
The 30 were not an existing order. They were conversion of 30 options, which were never an order.
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Old Jun 20, 2019, 10:51 am
  #158  
 
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Originally Posted by rapidex
The 30 were not an existing order. They were conversion of 30 options, which were never an order.
We are OT here, but it has been reported as conversion of 30 from an existing order.

https://www.flightglobal.com/news/ar...-order-459191/
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Old Jun 20, 2019, 11:08 am
  #159  
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Reuters posted an article today, headlined "Airbus demands chance to bid for IAG's surprise Boeing 737 MAX order"

In keeping with FT's rules, here is a short excerpt of the article and a link to Reuters' website
PARIS (Reuters) - Airbus called on Thursday for a chance to compete for a blockbuster plane order by British Airways owner IAG, which stunned industry executives at this week’s Paris Airshow by ordering 200 of Boeing’s grounded 737 MAX.
Tuesday’s blockbuster order, worth more than $24 billion (£19 billion) at list prices, was partly seen as an effort to preserve competition between planemakers, damaged by the three-month-old grounding crisis. But it clearly rattled Airbus which was caught unawares after signing a smaller order for A321XLRs with IAG.
“We would like a chance to compete for that business,” Chief Commercial Officer Christian Scherer told reporters, adding that IAG had not issued a formal tender for the narrow-body order.
https://uk.reuters.com/article/uk-fr...-idUKKCN1TL0TR
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Old Jun 20, 2019, 12:42 pm
  #160  
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Originally Posted by Prospero
Reuters posted an article today, headlined "Airbus demands chance to bid for IAG's surprise Boeing 737 MAX order"

In keeping with FT's rules, here is a short excerpt of the article and a link to Reuters' website
PARIS (Reuters) - Airbus called on Thursday for a chance to compete for a blockbuster plane order by British Airways owner IAG, which stunned industry executives at this week’s Paris Airshow by ordering 200 of Boeing’s grounded 737 MAX.
Tuesday’s blockbuster order, worth more than $24 billion (£19 billion) at list prices, was partly seen as an effort to preserve competition between planemakers, damaged by the three-month-old grounding crisis. But it clearly rattled Airbus which was caught unawares after signing a smaller order for A321XLRs with IAG.
“We would like a chance to compete for that business,” Chief Commercial Officer Christian Scherer told reporters, adding that IAG had not issued a formal tender for the narrow-body order.
https://uk.reuters.com/article/uk-fr...-idUKKCN1TL0TR
How does IAG justify to it's shareholders that this business was not tendered? However it is just an LOI at this point so maybe is a grand plan to have Airbus pitch back in at a much lower price.
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Old Jun 20, 2019, 12:44 pm
  #161  
 
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Originally Posted by BOH
How does IAG justify to it's shareholders that this business was not tendered? However it is just an LOI at this point so maybe is a grand plan to have Airbus pitch back in at a much lower price.
Could be a really big play by WW
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Old Jun 20, 2019, 12:55 pm
  #162  
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Originally Posted by BOH
How does IAG justify to it's shareholders that this business was not tendered? However it is just an LOI at this point so maybe is a grand plan to have Airbus pitch back in at a much lower price.
​​​​​​It seems that a combination of factors (Jet Airways demise, along with their 200+ 737Max order, and the 737 Max grounding) presented an opportunity at short notice.
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Old Jun 20, 2019, 1:00 pm
  #163  
 
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Originally Posted by TedToToe

We are OT here, but it has been reported as conversion of 30 from an existing order.

https://www.flightglobal.com/news/ar...-order-459191/
Which is poor and inaccurate reporting as it conversion of 30 options. Options are not orders, they are different animals.
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Old Jun 20, 2019, 1:06 pm
  #164  
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Originally Posted by McG
​​​​​​It seems that a combination of factors (Jet Airways demise, along with their 200+ 737Max order, and the 737 Max grounding) presented an opportunity at short notice.
Yes, great idea. Let's buy 200 planes that are currently grounded due to two fatal crashes in 5 months, the manufacturer first tries to blame the pilots and no date yet as to when they will fly again. Fantastic idea, you have to wonder what on earth has come over WW and the IAG board.

As I posted up thread, those 2 cashes are are an indictment of a shocking safety culture at Boeing, their last two new planes in the space of 5 years have been grounded on safety concerns shortly after EIS, two crashes resulting in the needless loss of circa 350 lives. Prior to that, the DC10 in 1979 was the last pax jet in the western world to be grounded on safety. With WW being a pilot himself I would have thought his utter disgust and anger at Boeing trying to blame the pilots would have held some small sway. Fantastic idea by IAG, FFS at least wait until the plane has approval to fly again
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Old Jun 20, 2019, 1:19 pm
  #165  
 
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We have no idea what discussions took place between IAG Airbus and Boeing before the LOI was signed. But if WW had had preliminary discussions prior to the grounding of the max, then I could well imagine after the grounding Airbus lost the incentive to offer IAG a large discount.

With Airbus being up in arms and demanding the opportunity to bid, perhaps the discount will move back to where WW thinks it should be.

WW now has a stick to beat Airbus with. I would bet that is exactly what he is about to do. A letter of intent is pretty much worthless.
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