smartplane wrote:morrisond wrote:smartplane wrote:A very large cost, which grows bigger by the quarter, is compensation, which will either flow back into x re-orders (effectively launch prices for a decade after entering service), or be discounted to other models, or cashed up at a massive discount.
Boeing are currently undertaking a charm offensive with the finance industry, including leasing companies, but unless mind blowing performance figures are announced, Boeing will likely end up being the biggest direct and indirect financier of the X, the latter via buybacks.
Surely a point where the Board become uncomfortable with X contingent liabilities (compensation), low unit sale price, model proliferation development costs, buybacks, and ownership exposure? And GE too, as Boeing must be asking them to share the load? 8 gone, and any F 9 based?
And what does what you wrote have to do what I wrote. If they can sell them for more than what it costs to build them the program continues. If not they will stop it.
But how close are Boeing, GE and other risk sharing participants to covering costs? Seems like a moving target still searching for the start of the rainbow, especially if there are F development costs, and post-shipment finance to add.
Every quarter's delay, for those customers who remain on the journey, compensation grows. A QR F order will be at launch rates, and will likely include a swap from passenger to freight models.
When Airbus ended A380 production and Boeing 748i production, there was a noticeable sigh of relief the X price cap could be lifted. Hasn't worked out so well, with the BA and SQ (re-priced) orders.
How realistic are 500 sales with just the current single 9 offering and engines?
I never said anything about covering development costs. Those are sunk. I said the program will continue as long as they can sell them for more than they can build them on a cash basis. If the program is expected to generate cash it will continue - if not it shuts down.