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It's phrased in such a way to give the idea that they've made a significant commitment, but it's entirely possible it was something like a 1% down payment.
by mikeyouse 4y ago
It's phrased in such a way to give the idea that they've made a significant commitment, but it's entirely possible it was something like a 1% down payment.
- bombcar 4y agoThis is almost certainly how it was done - and even the "fully refundable" deposits airlines make with Boeing, et al are going to have "fixed non-refundable costs" even just to handle the paperwork.
- mikeyouse 4y agoRight. If you're going to place a deposit for aircraft with a startup airplane manufacturer, "refundable" only makes sense if you're willing to take warrants or something that will grant you IP when the company folds. If Boom doesn't deliver the aircraft, the company folds and goes bankrupt, it's not like the deposit funds are just held in escrow. Might as well make it "nonrefundable" to get the PR value.
- 1024core 4y agoThe free publicity alone will pay for that.