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PAS19: Day Two Recap - Le Bourget Caught Cold By Massive 737 MAX Order, Airbus Fights On

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Day two of the 53rd International Paris Air Show kicked off in a very busy, tense, and competitive fashion for both Airbus and Boeing. Today, however, things shifted in a very surprising manner. Here’s what Day Two of the Paris Air Show brought to the table. ( Mais...

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Kevin Keswick 5
The order was only an LOI , you can bet they will only be converted into firm orders when IAG is 100% certain that the Max problems have been fixed
chalet 2
If does not take a rocket scientist to guesstimate that the discount at which IAG bought those 200 737s got to be in the 40 or even 50% off range. Boeing is trying desperately to regain the trust of the public, Aviation Authorities from around the world and the Airlines themselves that the infamous Max 8 is a good and trustworthy plane so AAL had a tremendous bargaining position. Any new comers?....mmm hard to see now, maybe later once the testing is complete.
Tobin Sparfeld 3
Yes, Boeing almost certainly gave IAG fat discount. But when you already have 5,000 orders for your plane, and your plane has (hopefully) hit rock bottom, it's a "win" if they can just stop the bleeding. Preventing any more cancellations over the next few months before EIS is about as good as they can do.

Interestingly, the IAG is only a Letter of Intent, not an order. And I wouldn't be surprised if there are additional LOIs or orders for the MAX since the queue is so long that it can be more easily amended. Along with the discounts, I would think Boeing would gladly allow favorable cancellation terms in order to secure some orders/LOIs at present.


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