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To: coconutt2000
define business vantage point... Boeing can be a very difficult supplier.

At present Boeing is out discounting Airbus and the 777 and 787 are very competitive. But when Boeing isn't discounting heavily they are usually not very competitive. Airline A1 might buy a dozen 777's today on very agreeable terms. But in a few years should they decide they need more - they can't count on Boeing to maintain their discounted pricing at that time, unless they buy options - but you can only buy options so far into the future.

If at that time Boeing is asking $200,000,000 each and offering undesirable delivery slots, you are stuck. You either end up buying planes you can't afford (which is what the majors did in the late 90's) or you end up going elsewhere and breaking down a common fleet.

With Airbus, you can pretty much count on pricing and support consistency for the life of the fleet.

A good public example is when Frontier decided to buy more 737's - the terms Boeing brought to the table in terms of pricing and delivery were not worthy of serious consideration. Boeing said take it or leave it... and guess what they did.

Boeing will swing from extreme to extreme, Airbus is pretty consistent. I will take consistency.

12 posted on 05/06/2006 1:45:46 PM PDT by Energy Alley
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To: Energy Alley

Thats total horse crap. Airbus is totally subsidized by the EU and aren't afraid to admit it. Last year they went after Boeing because they also turn out stuff for the military and the EU said that was subsidizing Boeing.


21 posted on 05/06/2006 6:31:48 PM PDT by snowman1
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