3 ms·

But why are they not also getting into the 737-size market, if that's such a huge market? If even the questionable 737 MAX is sold out for decades, that sounds

by mcv 3y ago

But why are they not also getting into the 737-size market, if that's such a huge market? If even the questionable 737 MAX is sold out for decades, that sounds like a pretty lucrative market to be in. It sounds to me like if you build something that works, you will sell as many as you can build.

jltsiren 3y ago
For the same reason Boeing developed the 737 MAX instead of a completely new model. The fixed costs are too high, the risks are too high, and the profit margins are too low. If it takes 10-15 years to develop a new plane, several years to ramp up production, and several years beyond that to break even, it does not make sense as a business. If you think it purely as an investment, there are always better uses for your money.
- kelnos 3y ago
  Wasn't a significant part of Boeing's decision to "recycle" the 737 time-to-market? Sure, they saved a bunch of money not designing a new plane, but they were also under heavy threat from the A320neo and needed to get something out there relatively quickly.
SpecialistK 3y ago
One chilling effect was what Boeing and the US gov't did when Bombardier in Canada developed their own 100-130 seat brand new ("clean sheet") aircraft. They levied so many tariffs that the project was economically unviable. So Bombardier sold it all to Airbus. Now Airbus has two series of single-aisle aircraft that are more competitive than Boeing's 737 (the A220 and A320.)
- Log_out_ 3y ago
  One can imagine how bad things must be behind the scenes if with that level of protectionism and political security deals backing the planes are grounded constantly. In working capitalism it's not the csuits that decide to make a great product, it's the competitive situation that forces everyones hand. Imagine Boeing as a ussr state owned conglomerate, who's directors try to game the metrics of the boss for a promotion. And we all know how that journey ended.

by mcv 3y ago

jltsiren 3y ago

For the same reason Boeing developed the 737 MAX instead of a completely new model. The fixed costs are too high, the risks are too high, and the profit margins are too low. If it takes 10-15 years to develop a new plane, several years to ramp up production, and several years beyond that to break even, it does not make sense as a business. If you think it purely as an investment, there are always better uses for your money.

kelnos 3y ago
Wasn't a significant part of Boeing's decision to "recycle" the 737 time-to-market? Sure, they saved a bunch of money not designing a new plane, but they were also under heavy threat from the A320neo and needed to get something out there relatively quickly.

SpecialistK 3y ago

One chilling effect was what Boeing and the US gov't did when Bombardier in Canada developed their own 100-130 seat brand new ("clean sheet") aircraft. They levied so many tariffs that the project was economically unviable. So Bombardier sold it all to Airbus. Now Airbus has two series of single-aisle aircraft that are more competitive than Boeing's 737 (the A220 and A320.)

Log_out_ 3y ago
One can imagine how bad things must be behind the scenes if with that level of protectionism and political security deals backing the planes are grounded constantly. In working capitalism it's not the csuits that decide to make a great product, it's the competitive situation that forces everyones hand. Imagine Boeing as a ussr state owned conglomerate, who's directors try to game the metrics of the boss for a promotion. And we all know how that journey ended.