LY refusing to receive the B739 earlier
Apr 30, 2013 | 11:42 am
#1
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LY refusing to receive the B739 earlier
According to http://educational.co.il/lost_found.php (sorry, hebrew only):
LY refused to receive the B739 two months earlier then planned. Boeing offer to give LY airplanes which were meant to be delivered to AeroSvit (which doesn't operate any more) because it would require changes to these planes' interior.
What do you think? Should LY have accepted these airplanes anyway?
Liat, can you please give us some more info regarding that decision? Could you also give us some info re which routes they will operate on, and on whether it will have newer business class seats/private TVs/mod-lights? Thanks.
LY refused to receive the B739 two months earlier then planned. Boeing offer to give LY airplanes which were meant to be delivered to AeroSvit (which doesn't operate any more) because it would require changes to these planes' interior.
What do you think? Should LY have accepted these airplanes anyway?
Liat, can you please give us some more info regarding that decision? Could you also give us some info re which routes they will operate on, and on whether it will have newer business class seats/private TVs/mod-lights? Thanks.
Apr 30, 2013 | 12:10 pm
#2
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Why should EL AL take a/c early that were meant for another airline and whose interior specifications were not exactly as EL AL wants and ordered them to be? Seems to me like Boeing is desperate to find a taker for these planes and is trying to get EL AL to take them without any compensation.
If I were in EL AL management, I would counter Boeing's offer and tell them that I would accept delivery of these two planes in exchange for, at minimum, a 10% reduction in price EL AL paid for it's order plus the cost of retrofitting the planes to EL AL specifications.
If I were in EL AL management, I would counter Boeing's offer and tell them that I would accept delivery of these two planes in exchange for, at minimum, a 10% reduction in price EL AL paid for it's order plus the cost of retrofitting the planes to EL AL specifications.
Apr 30, 2013 | 2:17 pm
#3
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Why should EL AL take a/c early that were meant for another airline and whose interior specifications were not exactly as EL AL wants and ordered them to be? Seems to me like Boeing is desperate to find a taker for these planes and is trying to get EL AL to take them without any compensation.
If I were in EL AL management, I would counter Boeing's offer and tell them that I would accept delivery of these two planes in exchange for, at minimum, a 10% reduction in price EL AL paid for it's order plus the cost of retrofitting the planes to EL AL specifications.
If I were in EL AL management, I would counter Boeing's offer and tell them that I would accept delivery of these two planes in exchange for, at minimum, a 10% reduction in price EL AL paid for it's order plus the cost of retrofitting the planes to EL AL specifications.
Apr 30, 2013 | 2:54 pm
#5
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Agreed - no reason for them to take planes that aren't what they ordered. If LY was offered some form of compensation, such as free retrofit to their requested interior plus a discount, or something, than go right ahead.
Apr 30, 2013 | 3:53 pm
#6
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Something as simple as galley incompatibility proves to be a big headache for any airline. Delayed implementation sounds logical here.
May 1, 2013 | 7:34 am
#7
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Retrofit covered by Boeing, yes.
Why would any additional compensation be needed? I mean, LY get's the plane two months ahead. I assume that either these planes will enable to increase frequency (in most cases you can start two months early), or replace less efficient planes (i.e., save more on fuel now).
Unless of course it'll take more than two months of retro-fit...
Why would any additional compensation be needed? I mean, LY get's the plane two months ahead. I assume that either these planes will enable to increase frequency (in most cases you can start two months early), or replace less efficient planes (i.e., save more on fuel now).
Unless of course it'll take more than two months of retro-fit...
May 1, 2013 | 8:45 am
#9
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Retrofit covered by Boeing, yes.
Why would any additional compensation be needed? I mean, LY get's the plane two months ahead. I assume that either these planes will enable to increase frequency (in most cases you can start two months early), or replace less efficient planes (i.e., save more on fuel now).
Unless of course it'll take more than two months of retro-fit...
Why would any additional compensation be needed? I mean, LY get's the plane two months ahead. I assume that either these planes will enable to increase frequency (in most cases you can start two months early), or replace less efficient planes (i.e., save more on fuel now).
Unless of course it'll take more than two months of retro-fit...
Regardless, if Boeing is looking to "unload" these planes, then a good business decision on the part of LY would be indeed to take compensation: You (Boeing) want something [to unload the planes] and I (LY) want something [money]. So it's like a trade
May 1, 2013 | 12:48 pm
#10
Join Date: Aug 2008
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It's not that Boeing should pay LY should take the planes. It's that LY shouldn't just take these planes early and then have to pay for the retrofit on their own. Boeing should have to pay for the retrofit, not LY. If they're going to replace the planes LY is getting in 2 months, and the retrofit would take longer, then LY should indeed receive more compensation.
Regardless, if Boeing is looking to "unload" these planes, then a good business decision on the part of LY would be indeed to take compensation: You (Boeing) want something [to unload the planes] and I (LY) want something [money]. So it's like a trade
Regardless, if Boeing is looking to "unload" these planes, then a good business decision on the part of LY would be indeed to take compensation: You (Boeing) want something [to unload the planes] and I (LY) want something [money]. So it's like a trade
And on a different note, assuming LY does not take MORE planes, would that mean that ahm... Boeing will try to re-sell LY's planes to some other airline? paying them the compensation for another retro-fit?
May 1, 2013 | 2:58 pm
#12
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Hence, there is a dilemma. Boeing can let the a/c sit in Everett and incur those costs, plus the cost of not getting paid for the a/c in the first place OR EL AL management could offer to take these planes immediately for a 10-15% discount off the price LY was paying for their 739's plus the cost of retrofit. EL AL could then bring the planes to Israel and retrofit them at their facility for added revenue paid for by Boeing.
May 2, 2013 | 3:06 pm
#15
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