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Airbus secures $50 billion deal

Geoff Riley

15th November 2017

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A terrific example here of the balance of bargaining power when a duopolist (Airbus) meets a business owning a group of low-cost airlines (monopsony buying power) to reach a deal for 430 aircraft worth - at list price - nearly $50 billion. The FT says that this may be the biggest deal in the history of aviation!

This may be the biggest deal in the history of aviation. https://t.co/gIk36qf4Bu
— Financial Times (@FT) November 15, 2017

#DAS17: proud to share our largest single commercial announcement ever with Indigo Partners' four portfolio airlines following the signature of a Memorandum of Understanding for 430 #A320neo Family aircraft - a deal worth nearly $50 billion at list prices. An Airbus record! pic.twitter.com/fX3lcLnmgK
— Airbus (@Airbus) November 15, 2017

Dubai Airshow: Airbus seals order with US firm Indigo https://t.co/5zIxdNlYGc
— BBC News (World) (@BBCWorld) November 15, 2017

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD and Revision conferences in the UK and overseas.

@tutor2uGeoff

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Airbus secures $50 billion deal

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