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How Do Airbus And Boeing Get Financed?  
User currently offlineRootsAir From Costa Rica, joined Feb 2005, 4188 posts, RR: 36
Posted (10 years 1 month 1 week 14 hours ago) and read 5354 times:

I would like to know if its possible to know how aircraft companies like Boeing or Airbus get financed. There is of course, the cost of an aircraft paid by airlines or leasing companies. There are also shareholders .I also suppose governments in the U.S for Boeing and the E.U also make some kind of subside via tax money. Do some airlines also participate financially to the developemnt of an aircrat. I always hear how the 764 was made specially for CO and DL and how EK always puts pressure on Airbus or boeing to modify an aircraft.

Thus I would like to know what the different sources of income for A and B could be that I have forgotten to mention.

thanks in advance



A man without the knowledge of his past history,culture and origins is like a tree without roots
5 replies: All unread, jump to last
User currently offlineA388 From Netherlands Antilles, joined May 2001, 10800 posts, RR: 15
Reply 1, posted (10 years 1 month 1 week 4 hours ago) and read 5279 times:

Let the battle begin boys, haha. I'm sorry, I just had to say this as a joke Big grin

I just see where this thread is going to (again) which is an A vs. B battle.

But to get on the topic, I think you answered most of your questions yourself, albeit in a general way. Aircraft are increasingly developed in close co-operation with the potential airlines. About the subisidies issue, everybody has a different view on this. I'm not that familiar with it.

A388  Smile

User currently offlineKhobar From United States of America, joined Mar 2006, 2379 posts, RR: 3
Reply 2, posted (10 years 1 month 1 week 4 hours ago) and read 5248 times:

Quoting RootsAir (Thread starter):
governments in the U.S for Boeing and the E.U also make some kind of subside via tax money.

Boeing subsidizes the government, not the other way around.


User currently offlineLehpron From United States of America, joined Jul 2001, 7028 posts, RR: 19
Reply 3, posted (10 years 1 month 6 days 22 hours ago) and read 5155 times:

I would think maybe, that a concept or part of it are discussed with potential contractors and subcontractors such that everyone bares the burden of cost. RR may make the engines, avionics could be by Honeywell, etc. Cost is spread out.

Common sense tells me that some of the profits from years of success may be used as research or whatnot towards other enterprises. That's what I would do, at least.  Smile

Perhaps like smaller businesses, each corporation may take out a loan to be paid back.

The meaning of life is curiosity; we were put on this planet to explore opportunities.
User currently offlineMir From United States of America, joined Jan 2004, 22873 posts, RR: 53
Reply 4, posted (10 years 1 month 6 days 22 hours ago) and read 5137 times:

Quoting RootsAir (Thread starter):
some kind of subside via tax money

And with those words, I'm ducking for cover. Let me know when it's over.  Smile


7 billion, one nation, imagination...it's a beautiful day
User currently offlineTugger From United States of America, joined Apr 2006, 6626 posts, RR: 10
Reply 5, posted (10 years 1 month 6 days 21 hours ago) and read 5089 times:

This is one where the passions are just too great and the disagreements too strong. It will be dangerous if it gets started so far I bet it's too hot for people to want to get into. Kinda like a hot tub that's too hot: Everybody would love to get into it but it's just TOO HOT!
Of course I will watch to see what happens.

[Edited 2006-04-28 03:31:15]

I don’t know that I am unafraid to be myself, but it is hard to be somebody else. -W. Shatner
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