Hacker News new | ask | show | jobs
by FeistyOtter 2030 days ago
Can an airline really refuse an aircraft without wasting some significant amount of money? I assume the airline or leasing company start paying from the moment they place an order all the way through construction, finished by a final payment at the moment of acceptance? When one orders a building company to build a house, you are given a payment schedule, I assume it is the same with airplanes.
2 comments

Airlines on the brink of bancruptcy have to refuse such orders, even if it only saves small amounts of money. And due to Corona, virtually every airline is in financially troubled waters.
Airliners are paid over a period yes, from the contract signature to several months after delivery. But the biggest chunk of cash changes hands at delivery.