An ''option'', when purchasing

aircraft An aircraft is a vehicle that is able to fly by gaining support from the air. It counters the force of gravity by using either static lift or by using the dynamic lift of an airfoil, or in a few cases the downward thrust from jet engines ...

, allows an

airline An airline is a company that provides civil aviation, air transport services for traveling passengers and freight. Airlines use aircraft to supply these services and may form partnerships or Airline alliance, alliances with other airlines for ...

to purchase additional aircraft in the future at an agreed price and date. When placing orders for new aircraft, airlines commonly obtain ''options'' from the aircraft manufacturer. These options allow the airline to delay the purchase of additional aircraft until market conditions become clearer and the purchase can be justified. It also reserves the airline a place in the manufacturing queue, for a guaranteed delivery slot. When the airline finally 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. If future conditions do not justify expansion of the airline's fleet, the airline is not obliged to purchase the aircraft. An example of this is of an airline purchasing 30 planes up front and having options for an additional 20 for later delivery. Depending on economic conditions, manufacturers often sell aircraft purchasing options below either the real or Aircraft Bluebook value of the aircraft.

Rolling options

''Rolling options'' differ from ordinary aircraft purchase options, in that the delivery slot is assigned at a later date, when the option is exercised or expires.

References

Aircraft finance {{Aviation-stub