4 ms·
> Finally, it is worth remembering that the Concorde was a very profitable business for British Airways, with operating profit of ~40% for the Concorde! You ma
by olympus 9y ago
> Finally, it is worth remembering that the Concorde was a very profitable business for British Airways, with operating profit of ~40% for the Concorde!
You make some good points, but BA received their Concordes for free. It's easy to turn a profit with a 150 million pound gift. Air France did not have it as easy. Boom's customers will not be getting their planes for free. And a 50% efficiency saving does not translate into 75% cheaper tickets. And my experience is that claimed maintenance savings are never as good as promised, and that goes doubly so for the "A" variant of any plane.
- bogomipz 9y agoInteresting why was BA gifted their Concordes? Did Air France lose money on their Concorde routes?
- stanlarroque 9y agoMy grandfather was one of the first pilots in Air France. He refused to fly the Concorde because he would never fly a plane that would make the company loose money.
- pacificmint 9y agoAccording to a NYT article [1] from the 2003, when the Concorde flew it's last flight, the airlines have never disclosed exact numbers for the profitability of the Concorde. Air France said 'Concorde operation was profitable "in some years."' BA said it once was, but not after the AF Concorde crash in 2000. They specifically mention that both Airlines didn't have to pay for the planes: > Part of the reason the airlines could claim some profitability on the Concorde was because they did not have to incur capital costs on the planes. [...] The governments of England and France underwrote the costs of building the 14 Concordes, which were then turned over to the two national airlines. [1] http://www.nytimes.com/2003/10/24/nyregion/for-concorde-economics-trumped-technology.html http://www.nytimes.com/2003/10/24/nyregion/for-concorde-econ...
- dingaling 9y ago> but BA received their Concordes for free. Only the last four white-tails were close to free, they cost 1 Franc each. The original UK Government-borne £115 million contract cost of the BOAC / BA Concordes was being recouped at a rate of 80% of their operating profit until in 1984 BA bought themselves out of the arrangement for £25 million.