plane When aircraft manufacturers announce sales, they try to keep the actual purchase prices a secret. This is because many buyers like commercial airlines receive discounts on their orders. Recently, rumor has it, Delta paid half the list price for its purchase of the Bombardier C series jet. 

Delta commissioned 75 jets from Bombardier Aerospace, bringing not just big business but also international credibility to the Canada-based manufacturer. Delta knew this, and Delta has a reputation for being a tough negotiator. So they were able to get a very large discount on their purchase.

On Christmas day, Iran Air announced that they were able to close a similarly great deal with Boeing, at “about half the announced price.” Iran Air’s official contract with Boeing for 80 aircraft was worth $16.6 billion. But Iran Air negotiated the actual price down by 50 percent.

So the moral of the story is, when you see a new plane order, a rough rule of thumb is to cut the announced price in half. Then you will have a better idea of how much money was actually exchanged.

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