Regan: Delta Deal A Game Changer for Bombardier

The transcript discusses Delta's purchase of 75 planes from Bombardier, highlighting it as a vote of confidence in Bombardier's financial stability. It explores the negotiation dynamics, emphasizing Delta's strong position and Bombardier's need for a significant order. The discussion includes an analysis of sunk and marginal costs, suggesting that any marginal revenue from the planes adds value. Finally, it considers future prospects, noting that if Bombardier's planes meet expectations, they could secure full-price orders.

Why is Delta's purchase of 75 planes from Bombardier significant?

• It demonstrates Delta's plan to expand internationally.

• It reflects Delta's strategy to reduce costs.

• It shows Delta's confidence in Bombardier's long-term stability.

• It indicates Delta's interest in diversifying its fleet.

What role does Delta play in the negotiations with Bombardier?

• Delta is in a weaker position.

• Delta is in a strong position.

• Delta is neutral in the negotiations.

• Delta is dependent on Bombardier's terms.

What is a key factor in determining the cost of a plane?

• The number of seats.

• The brand of the plane.

• The fuel efficiency.

• The sunk and marginal costs.

How might Delta benefit from the planes despite not getting the best price?

• By selling them to other airlines.

• By adding value through marginal cost revenue.

• By using them for short-haul flights.

• By leasing them to other companies.

What is the potential outcome if Bombardier's planes perform as expected?

• Bombardier will stop production of the planes.

• Delta will sell the planes at a discount.

• Bombardier will receive more orders at full price.

• Delta will return the planes to Bombardier.