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Alaska orders upto 100 737s

Not a surprise of aircraft choice, but it is surprise that they gone for all these.

Alaska Airlines places order for up to 100 Boeing 737-800s
Kerry Ezard, Washington DC (15Jun05, 21:40 GMT, 150 words)

Alaska Airlines today unexpectedly revealed an order for up to 100 Boeing 737-800s in a deal it says is worth $2.3 billion.

The carrier says the contract includes 35 firm orders and 15 options as well as purchase rights for an additional 50 737-800s.

Alaska will take delivery of the 35 aircraft over the next six years, with the first scheduled for delivery in January 2006.

The airline says the delivery plan gives it the flexibility to expand its fleet by about 60 aircraft by 2011, or to replace older aircraft without increasing its fleet size.

The order includes three 737-800s already ordered for 2006.

“While we still have work to do on our operational performance, we are beginning to have visibility into a cost structure that will allow us to be profitable in this changed environment,” says Alaska CEO Bill Ayer.

“This order positions us for growth opportunities ahead.”

Source: Air Transport Intelligence news

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By: Grey Area - 22nd June 2005 at 17:15

Ahhhhh – I’d forgotten all about it.

You should have done the same. 😀

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By: Tigerotor77W - 22nd June 2005 at 10:08

[QUOTE=Grey Area]I’m sorry, but how would you know? 😀

Tu as raison… je me suis trompé.

That is, you are correct. I wasn’t thinking quite clearly when I made my comment. 🙁

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By: bring_it_on - 19th June 2005 at 23:43

It is a commitment that their aircraft ie. boeing or airbus has been commited too over its competitor aircraft that was being puseud and the the airline has commited to production slots with one manufactere..however this is the last point at which they can cancel orders before being penalized…

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By: OSH - 18th June 2005 at 16:08

A commitment is first off all non-binding

So we now know that a commitment is NOT a commitment :confused: :confused: !!!!!!!!!!!

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By: bring_it_on - 18th June 2005 at 15:45

purchase rights for an additional 50 737-800s

what this basically means is that they have paid a non-refundable advance to occupy production slots for 50 737-800’s so that they can recieve them roughly at the time they want..They can take some time in deciding wether they want them or not..

ANYWAY my source’s bells are ringin again and seem to suggest a 50 787 orders before june end.

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By: Grey Area - 18th June 2005 at 15:40

Thanks for that, bring_it_on – it has been puzzling me for some time. 🙂

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By: bring_it_on - 18th June 2005 at 15:38

A commitment is first off all non-binding however a advance (refundable or otherwise based on predecided terms) is given to go ahead and occupy the required production slots..it basically covers THE TIME BETWEEN PLACING THE ORDER AND BEFORE THE FINAL DETAILS OF THE CONTRACT ARE WORKED OUT. boeing has traditionally copleted 90+% of its commitments to orders..

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By: Grey Area - 17th June 2005 at 06:04

I suppose it’s the same as “options” and “commitments” – businesses abusing the language slightly to wring the maximum positivity from reality. 🙂

You should see the way my bosses torture the language! 😮

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By: US Agent - 16th June 2005 at 22:43

Whats the difference between purchase rights and options?

That’s a good question… :confused:

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By: Grey Area - 16th June 2005 at 22:26

Maybe you’re right…..time will tell, as always.

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By: US Agent - 16th June 2005 at 22:23

Base on this quote from the article…

The A350 came into Paris well behind its direct Boeing rival, the 787 Dreamliner, which has won 266 orders.

…I would say the “order” number of 117 also includes options.

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By: Grey Area - 16th June 2005 at 22:00

I’m not sure, US Agent. As I said, the figure comes from a newspaper article and refers to “orders” – and we all know what journalists are like, no? 😀

Anyway, see what you think…..

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By: US Agent - 16th June 2005 at 21:52

117 orders. I don’t know whether or not that includes the 8 A350s (plus 7 options) included in the TAM Brasil order

Does the “117” number include options from all the other orders?

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By: Dantheman77 - 16th June 2005 at 21:41

Under the terms of its purchase agreement with Airbus for the Aircraft, JetBlue
has the right to receive delivery positions for Purchase Right Aircraft (also
referred to as Reserve Option Aircraft hereunder) equal to the number of Option
Aircraft as to which JetBlue has exercised its option purchase rights. Airbus
has granted JetBlue conversion rights for each of the twenty-nine (29) Option
Aircraft and Purchase Right Aircraft (also referred to as Reserve Option
Aircraft hereunder) from A320 Aircraft to the A321-200 or A319 aircraft type on
twenty-one months notice to Airbus. No dates are specified for delivery of these
Purchase Right Aircraft (also referred to as Reserve Option Aircraft
hereunder). Such delivery dates will be determined at the time options are
exercised by JetBlue.

hope this makes it clear

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By: Humberside - 16th June 2005 at 21:25

Whats the difference between purchase rights and options?

Thanks

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By: Grey Area - 16th June 2005 at 21:24

What’s the breakdown on the A350?

According to an article in yesterday’s Guardian, 117 orders. I don’t know whether or not that includes the 8 A350s (plus 7 options) included in the TAM Brasil order which was announced on the Airbus website today.

Obviously I can’t vouch for the accuracy of a newspaper report, although The Guardian is usually pretty spot-on where business matters are concerned.

And thanks for answering my question. 🙂

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By: US Agent - 16th June 2005 at 21:21

How many firm orders do Boeing have on the books for the B787 now, or are they still quoting a single figure for firm orders and “commitments” lumped together?

There are currently 128 firm orders and 138 non-binding commitments.

What’s the breakdown on the A350?

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By: Grey Area - 16th June 2005 at 16:48

Boeing is NOT storing orders for the 787, and never meant to.

I’m sorry, but how would you know? 😀

How many firm orders do Boeing have on the books for the B787 now, or are they still quoting a single figure for firm orders and “commitments” lumped together?

It would make sense to phase out their MD-80’s and go with a single fleet type but only time will tell if they do that.

I agree – this order would seem to be consistent with a decision to have a single-type fleet, Whiskey Delta.

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By: Hand87_5 - 16th June 2005 at 09:39

Only 35 firm orders though.
Anyway this decision is consistent.

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By: Whiskey Delta - 16th June 2005 at 09:28

Wow, 100 738’s for Alaskan? I never saw that coming. It would make sense to phase out their MD-80’s and go with a single fleet type but only time will tell if they do that.

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