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Naw. The environment changed and competition changed with Airbus, so Boeing had to meet the competition by coming up with it's own version. Airplane designs ha
by France_is_bacon 5y ago
Naw. The environment changed and competition changed with Airbus, so Boeing had to meet the competition by coming up with it's own version.
Airplane designs have got to be the single most difficult manufacturing challenge by far. Being a CEO of Walmart is going to be vastly easier than Berkshire Hathaway, which has a staff of 25 people: https://i.insider.com/5311e33beab8eaf731f07865?width=1000&format=jpeg&auto=webp https://i.insider.com/5311e33beab8eaf731f07865?width=1000&fo...
Costco? Just buy some big buildings and some shelves and buy some stuff, charge a membership fee and have a camera to take peoples' picture at 795 locations. I could do that in my sleep.
But an airplane???? A million parts on each airplane. An unholy mess if one fails. Highly paid aeronautical engineers. Highly precise parts made of specific materials that cannot fail.
Costco can open a brand new location for maybe $1 million? You can make a number of mistakes on that, and that's ok, existentially. But when a new airplane costs $1 billion, it is a whole different ballgame. Can't have any errors on that.
And a lot of times, even a stellar CEO cannot save a company who's time has passed. The average time on the Standard and Poors used to be 33 years, now it is 14 years. I am positive that I could keep Costco around for another 14 years if I was the CEO. "Yeah, people, keep doing what you're doing, it's all good. Keep stocking those shelves, you're doing just great." And give me the $15 million salary every year.