Post by philidor on Feb 27, 2019 17:01:56 GMT 1
The apparent contradictions between the different stories posted above suggest, in my opinion, that this is still a moving matter, and that though EY claims it has reached agreements with both Airbus and Boeing, the airline may not be through the negotiation process yet.
One confusing point is that EY is talking in terms of upcoming deliveries (short term changes), not cancellations or order reduction (permanent changes). Yet, as we all know, there is a difference between deferments and cancellations.
What's more, EY seems to be careful NOT to provide clarity. One important quotation from the Reuters article above is the following : "Etihad said it had reached agreements with Airbus and Boeing to not disclose details of the order changes". The manufacturers, however, must quickly disclose order changes or cancellations, and even though they don't have to identify the customers, the large numbers involved would be revealing.
My personal take is that some orders will be cancelled, many others deferred. Whether this makes a difference or not in the long term will depend on EY's future.
One confusing point is that EY is talking in terms of upcoming deliveries (short term changes), not cancellations or order reduction (permanent changes). Yet, as we all know, there is a difference between deferments and cancellations.
What's more, EY seems to be careful NOT to provide clarity. One important quotation from the Reuters article above is the following : "Etihad said it had reached agreements with Airbus and Boeing to not disclose details of the order changes". The manufacturers, however, must quickly disclose order changes or cancellations, and even though they don't have to identify the customers, the large numbers involved would be revealing.
My personal take is that some orders will be cancelled, many others deferred. Whether this makes a difference or not in the long term will depend on EY's future.
