Aircraft orders
Thread Starter
Joined: Feb 2007
Posts: 63
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From: FL390
Aircraft orders
Hi all,
I am trying to understand the process of how an operator actions its options and more specifically, its orders.... Then how the manufacturer delivers those.
Talking specifically about Easyjet and its A320/A319 orders: If an official report were to state EasyJet have placed an order for 170 of the A320family aircraft, how can I find out the intended delivery dates and frequency of delivery?
I imagine that Airbus try to produce them at a consistent rate, but EZY wouldn't necessarily want to receive them at a steady rate due to operational peaks and crew constraints.
Is this really complex and private/secure info or public information?
I am trying to understand the process of how an operator actions its options and more specifically, its orders.... Then how the manufacturer delivers those.
Talking specifically about Easyjet and its A320/A319 orders: If an official report were to state EasyJet have placed an order for 170 of the A320family aircraft, how can I find out the intended delivery dates and frequency of delivery?
I imagine that Airbus try to produce them at a consistent rate, but EZY wouldn't necessarily want to receive them at a steady rate due to operational peaks and crew constraints.
Is this really complex and private/secure info or public information?
Joined: Nov 2004
Posts: 259
Likes: 57
From: Asia
When negotiating a purchase agreement a buyer has to have a planned/assumed rate of acquisition given their needs and constraints and the manufacturer tries to match up its available production slots to the buyer’s requirements. The final contract has the agreed delivery months in the contract along with any options (usually options are in a side letter to the contract). The contract will probably state something like –
Aircraft 1 – March 2013
Aircraft 2 - May 2013
and so on.
The manufacturers do indeed build to a constant schedule and it requires months of planning with all their suppliers to either increase or decrease the rate of production. When an aircraft is in high demand the buyer has to get in quick and put money down to lock in its required delivery slots. I recall working for a canny operator that had sizeable orders/options for 744's spread over several years but only had deposits down on aircraft due in the next 18 months or so. Demand for the 744 became so great in the early 90’s Boeing demanded non-refundable deposits for aircraft 3 or 4 years away from delivery to lock in the buyers requirements. This caused some hand wringing as the operator was unused to committing that far out in front.
Delivery dates for aircraft a couple of years away can often be deferred if need be
Aircraft 1 – March 2013
Aircraft 2 - May 2013
and so on.
The manufacturers do indeed build to a constant schedule and it requires months of planning with all their suppliers to either increase or decrease the rate of production. When an aircraft is in high demand the buyer has to get in quick and put money down to lock in its required delivery slots. I recall working for a canny operator that had sizeable orders/options for 744's spread over several years but only had deposits down on aircraft due in the next 18 months or so. Demand for the 744 became so great in the early 90’s Boeing demanded non-refundable deposits for aircraft 3 or 4 years away from delivery to lock in the buyers requirements. This caused some hand wringing as the operator was unused to committing that far out in front.
Delivery dates for aircraft a couple of years away can often be deferred if need be
Thread Starter
Joined: Feb 2007
Posts: 63
Likes: 0
From: FL390
Thanks Cough- that was really useful!
I see that between GEZUK and GEZUL there are 6-months of barely nothing!!
Is there a simple explanation for that?
It seems like a huge change to receiving 2-4 per month. Even in 2009 they had a steady flow during the autumn months- so I don't think it is a seasonal effect.
Is it a case of consolidating all assets, or just planning a break in case they over-ordered... As CV880 mentions: months of planning and deposits are required
I see that between GEZUK and GEZUL there are 6-months of barely nothing!!
Is there a simple explanation for that?
It seems like a huge change to receiving 2-4 per month. Even in 2009 they had a steady flow during the autumn months- so I don't think it is a seasonal effect.
Is it a case of consolidating all assets, or just planning a break in case they over-ordered... As CV880 mentions: months of planning and deposits are required
