So what sort of discount did the Alliance offer Air France to win it as launch customer for the GP7200 engine on the airline's Airbus A380s? No one is saying, but press reports-claimed by Rolls-Royce to be exaggerated-suggested that the UK engine manufacturer won Singapore Airlines, Virgin and Qantas as its first three customers for the Trent 900 with discounts of as much as 105% below list price. "I can't comment on what Rolls is doing, but these are launch customers, and launch customers tend to get very attractive commercial terms," Alliance president Lloyd Thomson told I "However, we don't exactly see it that way. Traditionally you give the commercial terms because the customer has to suffer with you through the birthing and teething of the product. We don't intend to give our customers any teething pains, so maybe we're not making those kinds of discount." Thompson stressed that while Alliance is competitive in every competition with Rolls-Royce, and continues to be competitively viable, it is not going to do anything irrational. "Everybody has their reality in which they work, and at GE, Pratt and UTC it is based on the viability of the business and responsibility to stockholders," Thompson says. "If Rolls' shoes were on our feet, clearly we would give launch customers some kind of preferential commercial deal as they were first to show their commitment with you." But more important in his book, he explains, is the cachet of being able to walk into the next competition and say "My customer is already XYZ prestigious airline. That carries a lot of weight." Thompson said the Alliance was very disappointed to lose the first two competitions, and was very close in both right until the end. Lessons learned? "More of the airlines are looking at life cycle benefit, not just initial costs. When you get the competition on those terms you get a more balanced commercial outlook, and we are explaining that in all our campaigns," he said. -- J.M.

Where better than Paris to celebrate a major victory with Air France!