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$4 million cheaper, on a $68 million price tag? Is that a typo?
by noja 11y ago
$4 million cheaper, on a $68 million price tag? Is that a typo?
- AnimalMuppet 11y agoNo. $4 million is a lot of money. Now imagine that you're buying 100 of them.
- noja 11y agoIt's less than a 6% discount for something new and untested. Saving money it is not.
- notahacker 11y agoIt's an insignificant amount of money for an airline because (i) anyone buying 100 of them negotiates deep discounts from the manufacturer anyway, with Airbus and Boeing probably having more scope to offer them (ii) they borrow the money to buy the aircraft, and cost of finance on an aircraft of unknown provenance will be higher [unless a very favourable export credit arrangement underwritten by the Chinese govt] (iii) capital costs of acquiring an aircraft are a fraction of the cost of ownership, and there's a lot more uncertainty about the cost of operations and maintenance on these, as well as whether there will be an liquidity in the aftermarket when the airline wants to move them on.
- hugh4 11y agoThen I'm still only saving a few percent on the large amount of money I'm spending. And in return I not only have to deal with the risk of buying a hundred aircraft designed and built by people who were pushing plows a couple of years ago based on some photocopies smuggled out of Toulouse, I also have to have the airline that people say "Oh hell no I'm not flying on that".