Iberia Airlines Builds a Batna

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Iberia Table of Contents Introduction…………………………………………………………………………………….3 Question 1……………………………………………………………………………………...4 Question 2………………………………………………………………………………………6 Question 3....................................................................................................................................8 Question 4………………………………………………………………………………………10 References................................................................................................................................... 12 Appendix………………………………………………………………………………………..13 Introduction Iberia's Mr. Dupuy, 45 years old, a soft-spoken career finance man, first needed to woo Boeing to the table. The U.S. producer had last sold Iberia planes in1995, and since then the carrier had bought so many Airbus jets that Boeing considered not even competing. But in late July, Mr. Dupuy met Toby Bright, Boeing's top salesman for jets. Over dinner in London, according to both men, Mr. Dupuy told Mr. Bright that Iberia truly wanted two suppliers, not just Airbus. Yet replacing Iberia's old 747s with new 777s would be Boeing's last chance for years to win back Iberia. The argument against Boeing was that an all-Airbus fleet would make Iberia's operations simpler and cheaper. Still, going all-Airbus might weaken Iberia's hand in future deals. Airbus would know that the carrier’s cost of switching to Boeing would require big investments in parts and pilot training. Boeing had told Iberia that its 777 could hold 30 more seats than the 350 Iberia planned to put on the Airbus plane. Mr. John Leahy argued that the Boeing carries at most five more seats. "Get guarantees from Boeing" on the

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