Lazionic Posted March 29, 2007 Share Posted March 29, 2007 Anyone know if air canada is gonna pick up the options on the Embrears. If they havent decided yet, when is the final date that they can pick up the options? I believe they have the option to pick up another 60 airplanes, 45 190's and 15 175's. thanks! Link to comment Share on other sites More sharing options...
conehead Posted March 29, 2007 Share Posted March 29, 2007 Don't know the answer, but I hope we pick up the options. Those puppies are paying my mortgage! Link to comment Share on other sites More sharing options...
Seeker Posted March 29, 2007 Share Posted March 29, 2007 The passengers love the E-Jets so I hope we max out the options too. Link to comment Share on other sites More sharing options...
dagger Posted March 29, 2007 Share Posted March 29, 2007 Anyone know if air canada is gonna pick up the options on the Embrears. If they havent decided yet, when is the final date that they can pick up the options? I believe they have the option to pick up another 60 airplanes, 45 190's and 15 175's. thanks! The final date will be determined by the contract. And while the E-Jets are well-received, there still are another 22 coming under the current order, so there is no urgency to order more. Right now, the airline's priority has to be on the widebody side. Link to comment Share on other sites More sharing options...
Guest prob30 Posted March 29, 2007 Share Posted March 29, 2007 From a crewing perspective it appears to me that there are a surplus of F/Os and a dearth of Captains on the EMJ fleet. Cannot recieve more aircraft until more upgrades are completed, lest there be nobody available to sit over in the left seat. Link to comment Share on other sites More sharing options...
Flapsforty Posted March 30, 2007 Share Posted March 30, 2007 I don't think AC has ever converted any of their options, not sure though? Cheers Link to comment Share on other sites More sharing options...
Fido Posted March 30, 2007 Share Posted March 30, 2007 I don't think AC has ever converted any of their options, not sure though? Cheers I believe that you are correct. Why start now? Link to comment Share on other sites More sharing options...
AIP Posted March 30, 2007 Share Posted March 30, 2007 I don't think AC has ever converted any of their options, not sure though? Cheers Rumour has it options on both the 787 and 77 are going to be converted, which in terms of the 787 ties up the order book for quite some time. Link to comment Share on other sites More sharing options...
dagger Posted March 30, 2007 Share Posted March 30, 2007 Rumour has it options on both the 787 and 77 are going to be converted, which in terms of the 787 ties up the order book for quite some time. I don't know about the 777s, especially the 777-200LR, since that would take AC deep into technology that will become obsolete by the middle of the next decade when the stretch 787s (-9, -10, and perhaps a higher gross weight -8) are available with better economics. The 777-300ER has the more compelling economics of the two 777 derivatives AC has ordered, but I suspect AC believes it has ordered enough of the 349-seaters (unless the China market really opens up). AC would love to have the 787s arrive earlier, but that is unlikely. On the other hand, if I were in Brewer's shoes, I'd pick up ALL the 787 options. If AC doesn't want or can't afford all 60 planes, it can sell some of the options for a nice profit. As I understand it, quite a few options are date-specific and guaranteed, meaning they are in the manufacturing queue already and AC doesn't go to the end of the delivery schedule when it firms up options. I do know for a fact that AC has intended all along to pick up 787 options, but only at the deadline for each so as not to fork over large cash deposits before it has to. Link to comment Share on other sites More sharing options...
Spinnaker Posted March 30, 2007 Share Posted March 30, 2007 Is AC allowed to sell these EMB options at a premium? Or does Embraer write something in the contract about this? Link to comment Share on other sites More sharing options...
dagger Posted March 30, 2007 Share Posted March 30, 2007 Is AC allowed to sell these EMB options at a premium? Or does Embraer write something in the contract about this? There is usually no stopping an airline from firming an order and flipping the aircraft to a third party for a premium, but for that to happen, you have to have a very large order backlog and tightness in the market for good quality used aircraft. I would say the widebody market has those characteristics because demand is growing, yet 767 production is winding down while airlines wait for 787s and Airbus has lost 1-2 years in developing the A350 and has suffered 1-2 years of delays with the A380. Narrowbody demand is robust, but the used market isn't nearly as constrained. Link to comment Share on other sites More sharing options...
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