Re: 30-year-old technology

Date:         25 Mar 97 03:38:07 
From: (Gerard Foley)
Organization: The Greater Columbus FreeNet
References:   1 2 3
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Terry Schell ( wrote:
: (matt weber) writes:
: <snip>
: >Until someone figures out how to build a super-jumbo that makes economic
: >sense, I don't think anyone is going to getting orders.


: It is worth noting that the capital costs are really a "slippery slope"
: issue. If these costs are too high to sell many planes, you are forced
: to carry the development costs for a longer period of time.  This
: further increases the price at which the manufacturue needs to sell the
: planes in order to break even.

   While the total development cost will rise in this case, because of
interest, and there is substantial risk that it will never be recovered
because of obsolescence, the initial per plane price will be lower,
not higher.