GE has to sell engines and reasonable prices, but if it's the only one available for Boeing's plane, the customer doesn't get a competitive environment for engine procurement. From Boeing's side, of course they want to keep their plane reasonable priced, if they are in a competitive environment. Which they are. But when Boeing's LR project was dangling by a thread, neither Pratt, RR or GE were willing to ante up the considerable engine development dollars to develop the required engines... UNLESS they were the exclusive (i.e. not subjective to a competitive environment) supplier. Boeing, as you say, wants to sell planes, so they signed an exclusivity deal so they can go ahead and build it. .. and since GE not only builds and sells the engine, they will service it, and finance the whole plane through GECAS, even if they sell the engine at garage sale prices, they have the financial discipline to ensure they make it up elsewhere. Matthew On Wednesday, October 1, 2003, at 06:38 PM, Douglas Schnell wrote: > Assuming GE wants to sell engines (which is a pretty safe assumption), > what > is its incentive to price them uncompetitively and lose orders? > > Plus, you have Boeing pushing _very_ heavily against any price changes > by > GE. Boeing, incidentally, is interested in selling as many aircraft as > possible. > > I just don't see a competitive concern. > > -----Original Message----- > From: The Airline List [mailto:AIRLINE@xxxxxxxxxxxxxxxxx] On Behalf Of > Matthew Montano > Sent: Wednesday, October 01, 2003 10:59 AM > To: AIRLINE@xxxxxxxxxxxxxxxxx > Subject: Re: More 737 stuff > > > Boeing also cut a deal with GE for the engines on the 777 LRs. > > GE's way, or the high-way. > > (which also means GE's price...) > > But of course, Airbus with their 330/340s are just across the street. > > Matthew > > On Tuesday, September 30, 2003, at 08:47 PM, Alireza Alivandivafa > wrote: > >> In a message dated 9/30/2003 8:36:44 PM Pacific Daylight Time, >> damiross2@xxxxxxxxxxx writes: >> >> << It would require new certification >> Airlines with large fleets of 737's wouldn't buy (no commonality with >> current fleet) If it ain't broke, don't fix it >> >> >> That explains that. It is interesting the Boeing made that deal. They >> must have made a deal that keeps the engines from being priced too >> high