Option (aircraft purchasing)

An option, when purchasing aircraft, allows an airline to purchase additional aircraft in the future, at an agreed price and date.

These options allow the airline to delay the purchase of additional aircraft until market conditions become clearer and the purchase can be justified.

It reserves the airline a place in the manufacturing queue, for a guaranteed delivery slot.

[1] When the airline exercises its options, it can place its order without having to join the end of the queue, which otherwise may delay the delivery of the aircraft for years.

[1] An example, is an airline purchasing 30 planes up-front and having options for an additional 20 for later delivery.