Iberia Airlines Builds a Batna

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1. Critique the negotiation strategies and tactics of all three key executives involved: Dupuy, Leahy, and Bright. Iberia's Dupuy played the game to perfection. His main task is to strengthen his BATNA. It had been a long time since Iberia had bought Boeing. He strain every nerve to Boeing to bidding competition includes 14 hours of flying to Seattle. Another stroke of genius was to bring the used Singapore Airlines 747s into consideration. He was also in the 1995 do well (facing the aircraft manufacturers another bad market years) including the resale price assurance and Airbus Company negotiations. 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 2. Critique the overall marketing strategies of the two aircraft makers as demonstrated in this case. Those two aircraft makers have different advantages. Airbus: it is better investment return: 1. could be more easily integrated with their current planes that are helping to save money in long run; 2. already less expensive to purchase. Boeing: 1. the more seats allowing additional earnings of about $8,000 more per flight; 2. less expensive to operate and maintain; 3. emphasized comfort and operating costs. 3. What were the key factors that ultimately sent the order in Airbus's direction? First, they met the requirements Dupuy set up in the beginning; Forgeard got on the phone with Iberia's Irala, who said he still needed two concessions on the nancial terms and economics of the deal. Airbus had already agreed to most of Dupuy's terms on asset guarantees and, with

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