The Spanish carrier was shopping for new jetliners, and the models were calling cards from Boeing Co. It was the first encounter in what would become a months-long dogfight between the two aviation titans—and Iberia was planning to clean up. The crisis in the air-travel industry makes the two manufacturers desperate to nail down orders. So they have grown increasingly dependent on airlines, engine suppliers and aircraft financiers for convoluted deals.
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Worried about plagiarism? Read this. Help Login Sign Up. This is by far the best description of a high-level international business negotiation ever published in the popular press. The insights and lessons are most useful. Iberia's Dupuy played the game to perfection. It had been a long time since Iberia had bought Boeing. He went to great lengths to bring the Boeing folks into the bidding contest including offering to fly the 14 hours to Seattle. Another stroke of genius was to bring the used Singapore Airlines s into consideration.
He also had done a good job during the another bad market year for the aircraft makers negotiations with Airbus by including the resale price guarantees. Bright Boeing was in trouble from the start. But, in a down market he could hardly ignore a big order even from a European airline with cozy connections to Airbus.
He did do well on the creativity dimension by guaranteeing GE concessions on engine maintenance. Leahy Airbus probably gave away too much in price and had not bothered to include a confidentiality agreement about the final price.
Airbus and Boeing are competing for market share through price cuts. In a volatile industrial market this guarantees major advantages in the bidding process.
We, of course, cannot and would not counsel collusion between the aircraft makers. But, both firms would be better off with less aggressive price discounting. One of Boeing's failings is to not have a European working on business in that part of the world.
Notice how Airbus has hired an American Leahy to sell planes in that market. It appears from the case that the strong personal and political relationships between the top executives at the European Case 5. In WriteWork. WriteWork contributors. WriteWork contributors, "Case 5.
4-2: Iberia Airlines Builds a BATNA - Case Study Example
Post a Comment. Saturday, January 11, Case 5. This is by far the best description of a high-level international business negotiation ever published in the popular press. The insights and lessons are most useful. Iberias Dupuy played the game to perfection. It had been a languish time since Iberia had bought Boeing.
Iberia Airlines Builds a BATNA