Re: Airbus on a roll

Date:         04 Dec 96 02:42:17 
From:         "t. smith" <>
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RD Rick wrote:
> In <airliners.1996.2632@ohare.Chicago.COM> (Robert
> Carpenter) writes:
> >
> >I still have a bit of trouble understanding the 45% of list price
> >quoted for the USAir Airbus order.  Isn't a major portion of the cost
> >of a plane made up of components bought in, not produced by the
> >airframe monger?  By the time that you've paid for engines and
> >electronics, how much of the selling price is available to actually
> >bend the metal or to give away as a purchase incentive?

> For being such simple devices: suck, squeeze, bang, blow, the engines
> sure are priced high, however..

  For engines, it seems the R&D and the *materials* is what drives cost.
The new generation of engines, like the PW4077, can sell at more than
12Million each. Having spoken with several of the Pratt&Whitney
mechanics that work in the new technology facility in CT, the
research/prototyping/testing done there is quite elaborate.
   As for the 45% list price, Airbus basically wants to sell America
airliners paid for by European taxpayers, in the name of market
penetration and future jobs/technology/profit/global position.  We have
not learned our lessons from our electronics/automobile manufacturing
sell-outs.  Fool us twice, shame on us.

-- thomas --