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AMR Question

Old 09-01-2008, 04:31 PM
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Sorry, but I am not familiar with how Boeing operates their aircraft purchases and sales. Can someone help me understand what it means for AMR to have "purchase rights" for the B787? Does this guarantee AMR will eventually buy? Does it simply state they have delivery dates held with pricing involved? Also, how are contract talks progressing? Good luck!
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Old 09-02-2008, 02:55 AM
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Originally Posted by grant123 View Post
Sorry, but I am not familiar with how Boeing operates their aircraft purchases and sales. Can someone help me understand what it means for AMR to have "purchase rights" for the B787? Does this guarantee AMR will eventually buy? Does it simply state they have delivery dates held with pricing involved? Also, how are contract talks progressing? Good luck!
Great question. I don't know the answer! AA signed an exclusivity contract with Boeing in 2000 I think that was the year might have been 1999.
Alot has happened since then. Politically, economically. Back in 2000 AA told Boeing "we'll buy as many of the Trans-sonic cruisers as you can build" a very bold statement. That project was shelved after 911.
The trans sonic cruiser would have allowed trans-continental turns with pilots completing the coast to coast to coast trip in less than the max duty day limits. Thus requiring less pilots on the payroll.
I do not know the intricacies of Purchase rights, but if I were to guess, it is that some customers (airlines or leasing companies) never intend to take delivery of the actual aircraft and are just treating the order like a real estate "Flip" to make money. Or sometimes airlines that placed the order are not ready for delivery. Or if it's a leasing company it's ussually an international leasing company and they are more flexible on delivery dates and can sell or delay their position in line for delivery.

contract talks are always slow. so they are going slow. there are a bunch of issues we are facing right now that it seems no-one knows the answers just yet.
Our pilot contract became ammenable on may 1 2008. Our Union has had a complete contact proposal in place since early this year.
Managements proposal is the usual "No soup for you" we have no pay raise available for you. But we will allow you to work more. We would like you to be more productive.

Good questions, just wish I had a real answer on any of this.
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