first choice orders more 787s
 

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.

The Boeing 787 has been the most successful new commercial aircraft to launch
ever. First Choice Airways will take delivery of its first two in 2009 and
introduce the remaining 10 between 2010 and 2013, doubling the size of its
long-haul fleet.

The B787 will bring faraway places within the range of mid-sized aircraft,
flying up to 8,500 nautical miles (10,000 miles) - Gatwick to Borneo for
instance - as fast as comparable current jets. It will use 20% less fuel than
today's mid-sized commercial aircraft, in part down to 66% of the aircraft
comprising composite material, which is considerably lighter than traditional
materials.

The B787 will also improve passenger well being; it will be pressurised at lower
altitudes and have greater cabin humidity ensuring passengers arrive feeling
less tired. New technology that senses air pressure differences and allows the
aircraft to avoid turbulence will also result in a smoother flight.

The First Choice Mainstream Holidays Sector provides differentiated holiday
experiences. Building a market-leading long-haul travel programme is a key part
of this strategy. Providing the most comfortable economy cabin is critical to
its success, as it has demonstrated over the last two years by upgrading its
Boeing 767's to provide customers with more legroom and superior in-flight
entertainment. Long-haul sales are currently up 38% for Winter 2006/07 and 19%
for Summer 2007.

Dermot Blastland, Managing Director of First Choice Mainstream Holidays said: "
Having taken the decision to increase our commitment to long-haul holidays we
wanted to ensure we could do this in the most cost effective and environmentally
sound way, whilst offering our customers new destinations and even more
comfortable travel. When we announced our selection in 2004, we believed the
new Boeing 787 would be key to achieving this. The success of our current
long-haul programme has now given us the confidence to order 12 aircraft. The
B787's will be a unique experience for our customers, as we establish ourselves
at the forefront of long-haul leisure travel."

"This third order from First Choice is another vote of confidence in the Boeing
787's capabilities and unprecedented environmental performance," said Marlin
Dailey, Vice President of Sales for Europe, Russia and Central Asia, Boeing
Commercial Airplanes. "It's exciting and very satisfying when great customers
like First Choice continue to select your product. It reflects its faith in the
787 and in Boeing. I'm also very proud First Choice is making the B787 an
integral part of its environmental leadership."

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.

Buying an option is just like putting a deposit on a manufacturer slot! therefore you know if you exercise the rights you will have a definative delivery date.

Isn't it just reserving places in the production queue ?

Depends on the terms of the options, but it means purchase rights to come back and buy aircraft at a predetermined price point and delivery date. Delivery date is the most important factor at the moment.

As the 787 is in demand at the moment, companies are exercising their options and getting their confirmed slots in the delivery queue. Letting an option expire in this seller's market might mean if you want a follow-on order you would be waiting for some years at the back of the line.

How much notice do you have to give to excerciseyour option? You obviusly cant decline the option after production has started?

If you decline your option does everyone behind you move up a slot and therefore get an earlier delivery date?

I think (as I've never bough an airliner...) it's a case of there being a date on the options, when they must either have been converted to a full order or they expire and the airframer can resell them.

FCA were an early buyer so their options may be valuable, as they would be for aircraft early in the production series compared to people turning up today wanting some. If they have options for 2009 deliveries, you couldn't go to Boeing today and buy them as they have a full book for a few years out.

That's assuming no slippage in the program, which is by no means certain. New buyers might have to wait until 2012 or later.

Is it true that FCA operate a weekly flight to Montego Bay from Manchester every Tuesday with a 752!:eek:

Even with the extra legroom, wouldn't like to be on a flight for 9h 10m with that aircraft!

Does it make a stop over or are OAG making a mistake and it is a 763?

Cheers.

MUFC fan
 

Not true. The aircraft is a B763 and operates fortnightly.