Discount off List price...

[BBN RADAR]

From Cathay press release:

Cathay Pacific Airways today announced that it is continuing to make significant investments to modernise and grow its fleet, entering into an agreement with The Boeing Company to purchase four Boeing 777-300ER passenger aircraft and eight Boeing 777-200 Freighters.

The 12 new aircraft have a list price of about HK$25.6 billion but will be acquired at a considerable discount, as is the usual practice in such transactions.


Can anyone give me a ballpark figure of the % discount that Cathay would get in a deal like this? What about for even bigger orders like American Airlines' order for over 200 Airbus aircraft recently?

Cheers

[Cpt. Underpants]

Typically 35% to 40% depending on "relationship" issues.

[broadband circuit]

The price per aircraft generally decreases the more that you order.

That being said, after the initial purchase of the -300ERs, a very highly placed (non-pilot) manager involved in the deal accidentally let it slip that Boeing had told CX that, despite the original order only being for 36 (16 + 20 options, but please correct me if I'm wrong), they were so confident that we would eventually end up getting about 75 of them, including some freighters, that they gave us the price as if we'd ordered 75, and told us that the "75 order price" would be the charge for any more that we ordered.

[Captain Dart]

...and they'll be after more 'discount pilots' to fly them :hmm:.