Re: Singapore Airlines The A340 vs 777 saga continues

Date:         04 Sep 99 11:38:35 
From:         westin*nospam@graphics.cornell.edu (Stephen H. Westin)
Organization: Cornell University Program of Computer Graphics
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Terry Schell <tschell@uwf.edu> writes:
> James Matthew Weber wrote:
> > My own belief is GE got the business in part because the other choices
> > were not especially viable in the eyes of Boeing... PW was almost
> > certain to have problem with In-Service Date, RR didn't provide any
> > growth capability, which would effectively lock the aircraft into a
> > 1999 configuration indefinitely.
>
> What I don't understand is why GE wanted the exclusive contract.  They
> have a great deal of evidence that their competitors could not bring a
> product to market in a timely and cost-effective fashion.  GE had to
> realize that they could crush any offering by RR or PW because of their
> vastly lower development costs.

But in might be a Pyrrhic victory: if, say, RR came in and took 15% of
the market, it could make the difference between profit and loss for
GE. The exclusivity reduces risk for GE, and I suspect that was needed
to get their commitment.

--
-Stephen H. Westin
Any information or opinions in this message are mine: they do not
represent the position of Cornell University or any of its sponsors.