First Choice Airways, the European launch customer for the Boeing 787, has
exercised options on a further four B787 aircraft. Originally, in July 2004,
the airline signed up for six 787's with options on a further six. In September
2006 it exercised the options on a further two and has now ordered the final
four.
What is an "option"? Is it like saying I might buy another four planes or I might not?
If you take out an option, do you get them at market price when you take the option or is there any other real advantage of taking an option?
Does the manufacturer actually start the production process on an option or do they wait until the firm order has been placed.
Its been a thing that has puzzled me for a while.