|Quoting DLPMMM (Reply 8):|
subtract that number from the contribution margin from each plane on order times the number of planes ordered (the gross profit on all outstanding orders)
My point was that, according to EADS, the result of any such subtraction will be a minus number, DLPMMM.
Admittedly, the phrasing is a bit obscure, but "..the A380 series production will generate a cumulative programme EBIT* loss of around € 2.8 billion for the years 2006 to 2010, of which approximately € 1.1 billion is anticipated in 2006 and approximately € 0.7 billion in 2007"
means that, on top of not recouping any of the development cost, Airbus expects to make a loss on the actual PRODUCTION of all frames up to 2010.
Worth remembering that production up to 2010, on EADS' own figures, is predicted to be 84 aircraft - more than half of the orders they have left. So, to summarise, besides losing out on all the development costs for the foreseeable future, they are actually proposing to PRODUCE most of the things at a loss, too.
|Quoting DZ09 (Reply 9):|
Where does the 420 break even number come from. What's the profit margin per plane?
DZ09, 420 deliveries is the point at which they would hope to have recouped both the production costs and the accumulated development costs, plus accrued interest. IMO a purely theoretical calculation at this time, and for many years to come.
"Once you have flown, you will walk the earth with your eyes turned skywards.." - Leonardo da Vinci