Originally Posted by
Preemo
I thought I had read earlier in this thread that Boeing's margins were razor slim on this deal...now they can be profitable with a $2B over-run means they must have 10%-15% profit in their price. In 2017 their operating margin was 11% so it looks like this was a good deal for them from the get go....or accounting magic happening here.
The margins for the KC-46 development program were razor slim - not so much the production program.
Even with all the hiccups on the 787 program, Boeing Commercial has been operating with around a 10% margin on the production side.
With a ~$30 billion KC-46 production program, Boeing should still do OK in the long - just not as well as they would if the program had been properly managed and executed...