Regan: Delta Deal A Game Changer for Bombardier

Regan: Delta Deal A Game Changer for Bombardier

Assessment

Interactive Video

Business

University

Hard

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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.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What factors should be considered when assessing the financial strength of Bombardier from Delta's perspective?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways might the pricing of the planes affect future orders from Delta?

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