Wandering Aramean: DL agent in uniform using thumb counter at QR Gate
Jul 15, 2016, 1:01 pm
#91
Join Date: Apr 2011
Posts: 3,394
With enough social media spending every time the word subsidy shows up on a post dozens jump in to put out the ME3 are subsidized theory.
Don't worry this subsidy party is coming to an end on its own. Without oil money these regimes have more pressing issues than dumping capacity and lowering prices in aviation. EY and QR may drag this issue little bit longer than EK. For their model to work all other airlines should stop international flying or go out of business. That didn't happen with the exception of some US and EU route cuts.
Bad part for US, Boeing put all its WB eggs in ME3 basket. So lets prepare our-self for another American Inc reorganization/restructuring.
Don't worry this subsidy party is coming to an end on its own. Without oil money these regimes have more pressing issues than dumping capacity and lowering prices in aviation. EY and QR may drag this issue little bit longer than EK. For their model to work all other airlines should stop international flying or go out of business. That didn't happen with the exception of some US and EU route cuts.
Bad part for US, Boeing put all its WB eggs in ME3 basket. So lets prepare our-self for another American Inc reorganization/restructuring.
The governments of the UAE and Qatar will continue to subsidize QR/EK/ET until A: enough competition has been forced out of the market B: the US/EU governments halt their expansion due to the subsidies.
The model that the ME3 have is not sustainable in a non subsidized environment with the current competition. I'm sorry DOH/AUH/DXB are very limited O/D markets. They connect virtually all of their passengers. The only advantage they have is price and service, all of which they can provide due to the subsidies.
Jul 15, 2016, 2:07 pm
#92
Suspended
Join Date: Sep 2005
Location: SEA
Programs: UA Silver, BA Gold, DL Gold
Posts: 9,779
Good thing that the US spends roughly as much as the next 9 biggest spenders combined.
Jul 15, 2016, 8:50 pm
#93
Join Date: Apr 2015
Posts: 430
Whether B787 sees profitability is irrelevant to your premise that the loss of the ME3 would require some sort of bankruptcy or bailout. Even if it never breaks even, the B787 is either currently cash flow positive or will be very soon. Even the most skeptical about the the overall program profitability acknowledge that it will generate significant cash in the near to mid-term.
787 - Program may never be positive
737NG - Sells for $22 Million a plane
77W - Courtesy RA used frames are $10Million. Every buyer is scrambling
777X - Entire program unsure
737MAX - How smooth EIS and quality control will be (Hope not B788 repeat)
BDS - Very less external sales, shares domestic sales with others, SpaceX and others eating into its business.
May be a pessimistic view but not totally out of possibility.
Imagine a BCA totally focussed on B787 and B737MAX with a slightly improved B77W.
Jul 16, 2016, 12:23 am
#94
Suspended
Join Date: Sep 2005
Location: SEA
Programs: UA Silver, BA Gold, DL Gold
Posts: 9,779
787 - Program may never be positive
737NG - Sells for $22 Million a plane
May be a pessimistic view but not totally out of possibility.
Imagine a BCA totally focussed on B787 and B737MAX with a slightly improved B77W.
Jul 16, 2016, 7:09 am
#95
Join Date: Apr 2015
Posts: 430
B787 at $110 Million (A320 list price)
B737NG at $22 Million (ATR72 list price)
B777X at $160 Million ($400 Million to build one)
is healthy business???
