Originally Posted by
tdracer
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...
ITS Called Program accounting - sort of a deluxe version of the Gillette razor blade method- Sell the razor at cost ( or less ) and make the real $$ on blades and future support. ( spare parts, unique parts, service and maintenance )
Boeing gave Military a fair price on the B-52 a few years ago and . . .
