rootsair
Posts: 4012
Joined: Sun Feb 06, 2005 3:25 am

How Do Airbus And Boeing Get Financed?

Thu Apr 27, 2006 4:39 pm

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

Regards

BM
A man without the knowledge of his past history,culture and origins is like a tree without roots
 
A388
Posts: 7248
Joined: Mon May 21, 2001 3:48 am

RE: How Do Airbus And Boeing Get Financed?

Fri Apr 28, 2006 3:04 am

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
 
khobar
Posts: 1336
Joined: Fri Mar 17, 2006 4:12 am

RE: How Do Airbus And Boeing Get Financed?

Fri Apr 28, 2006 3:28 am

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.

 duck 
 
lehpron
Posts: 6846
Joined: Tue Jul 10, 2001 3:42 am

RE: How Do Airbus And Boeing Get Financed?

Fri Apr 28, 2006 9:02 am

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.
 
Mir
Posts: 19108
Joined: Mon Jan 05, 2004 3:55 am

RE: How Do Airbus And Boeing Get Financed?

Fri Apr 28, 2006 9:21 am

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

-Mir
7 billion, one nation, imagination...it's a beautiful day
 
User avatar
Tugger
Posts: 6147
Joined: Tue Apr 18, 2006 8:38 am

RE: How Do Airbus And Boeing Get Financed?

Fri Apr 28, 2006 10:30 am

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!
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Of course I will watch to see what happens.

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