Date: 26 Oct 98 02:59:07 From: Garry Forrest <garryf@SoCA.com> Organization: Pepperdine University References: 1 Followups: 1 2
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Your projected costs and margins seem to be in the ballpark -- for a competitive situation. Makes one wonder if an AI/Boeing joint venture would be of economic interest. The barriers to entry are high enough to keep out any serious competition allowing the manufacturers to jack up the margin to 747 levels, breaking even around 150 ships. Recall that arch rivals Pratt and GE have collaborated; if they can do it, anyone can do it.