4 ms·
Still would be a lot cheaper than scrapping 80 billion dollars worth of planes already built.
by mrep 7y ago
Still would be a lot cheaper than scrapping 80 billion dollars worth of planes already built.
- masklinn 7y agoSeems like a prime demo of sunk costs fallacy.
- mrep 7y agoHalf of that is from unsold planes that they built after it got grounded. So for those, their options are retrain pilots and make 40 billion in sales vs not retraining pilots and scrapping the planes/reusing what you can. Pretty sure the 40 billion in sales will easily be greater than retraining the pilots and whatever scrap they could use. Also, "Typically, once an airline takes the aircraft, Boeing makes some guarantees in terms of the performance of that aircraft, and one of them is that the aircraft should be airworthy," says Chris Higgins, an analyst at Morningstar [0]. So even the other half that is already sold isn't necessarily sunk for them as they have contractual obligations that will cost them if the planes have to get scrapped. [0]: https://www.npr.org/2019/03/13/703189895/for-boeing-costs-of-grounding-jets-have-only-just-begun https://www.npr.org/2019/03/13/703189895/for-boeing-costs-of...