Instigator
Well-known member
- Joined
- Feb 23, 2004
- Posts
- 120
Regarding the CAL 737-700 orders...
When an airline orders airplanes, they put down a deposit for each one ordered. The deposit is a percentage of the buying price. Boeing has it structured that you can order any version of the 737 and convert that order to a different model a set time before production is scheduled.
Since a 737-700 is cheaper than a -900, CAL pays a lower deposit at the time of order and then converts them at the point when they need to confirm which model they want. They effectively hold on to the difference in deposit money for that period.
So, while CAL shows orders for -700s, they will all be converted to -800s and 900s.
Make sense?
When an airline orders airplanes, they put down a deposit for each one ordered. The deposit is a percentage of the buying price. Boeing has it structured that you can order any version of the 737 and convert that order to a different model a set time before production is scheduled.
Since a 737-700 is cheaper than a -900, CAL pays a lower deposit at the time of order and then converts them at the point when they need to confirm which model they want. They effectively hold on to the difference in deposit money for that period.
So, while CAL shows orders for -700s, they will all be converted to -800s and 900s.
Make sense?
