Hi,
I have a few questions about the ordering system: I'm happy with my Fairchild Metro 23's, and I'm planning to build a subfleet as my airline develops. But since I'm the only customer placing (new) orders, I might risk production-line closure.
So my question is: what is the minimum required backlog to prevent closure? And when 'production is about to end', how much orders does it take to continue production? Just 1 airframe, or a certain percentage of the monthly production rate?
Thanks in advance.
It's much more than 1. But I don't have the actual figures here but it depends on a) how long has been since last order was delivered and b) how much queue is left on the line .. a & b is needed before it enters the "about to close" stage. If you place something like 5-10 orders, the line will pop back to "normal" status (a news of this will be also posted) - and if not it will close in some months.
Quote from: sami on August 03, 2010, 09:40:01 PM
how long has been since last order was delivered
Would be nice to know how long time it can stay open without orders.
Further: when 'production is about to end' and I place (hypothetical number) 5 orders, when only 10 or more could keep it open. Would my orders be canceled, or would I be asked to place additional orders?
Quote from: CX920 on August 03, 2010, 09:48:23 PM
Further: when 'production is about to end' and I place (hypothetical number) 5 orders, when only 10 or more could keep it open. Would my orders be canceled, or would I be asked to place additional orders?
1 of 3 potential things happen when you place an order with a production line that is "about to end".
1> The order is small enough to be done in the window that still is still open before production ends but not large enough to re-open the line continued production.
2> The order is large enough to justify re-opening the line so when the line was going to end doesn't matter as it's extended now for however long it takes to complete your large order.
3> The order isn't large enough to re-open the line or produce before the window closes -- you get a message stating your order cannot be completed before production ends.
Quote from: Sigma on August 03, 2010, 10:58:36 PM
2> The order is large enough to justify re-opening the line so when the line was going to end doesn't matter as it's extended now for however long it takes to complete your large order.
Any idea what the amount of airframes is the 'turning point'?
I have this problem too as I was going to order ERJ-145STD's for my airline in ATB but the line closed before I had money to order so now I'm stuck...have to order the larger, more expensive ERJ-170's which I wouldnt get for a year or two...longer wait for a plane that doesnt fill my needs