Dr. Dave I was the one who brought up Galileo because it seemed to be that it is a similar case where subsidies are being used, but any real discussion should be a separate thread. It is similar to aircraft projects by CASA and others where the government backs the development and then production is undertaked on a "commercial basis". This leaves the "taint" of subsidies on the project as a whole. GPS is not the only SATNAV game in town...you forgot GLONAS. And you kind of forgot that SA hasn't been used or even considered since the first few hours of Gulf War I. I realize I am a nasty American and don't have the same sensitivity as a European but the SA thing doesn't bother me as much as it seems to bother some Europeans. Suppose it has something to do with the U.S. having the keys to the satellites and not the EU.
The various ways corporations can receive financial advantage from governments are mind boggling. How could anyone ever figure out all the little advantages and disadvantages that are used to foster and support the "home team". Not sure how a corporation can even say what it really costs them to produce something as complex as an airliner and judge whether they made a profit on any given one.
And it is complicated not just on subsidies from governments. I understand JetBlue in their contract to buy A320s from Airbus had 5 years of maintenance included. Probably had lots of other clauses in the contract and other buys are also likely as complex with different hedges and options and things. If I were Airbus management then I would wonder whether I was making any money on the deal, but wouldn't know until the deal was complete in a few years.
What will happen if/when airlines go finally belly up? (U.S. air, United, Delta and others on the ropes now) Classicly it has resulted in lots of relatively new aircraft available at reasonable prices and price pressure on the new production stream of aircraft to be economically attractive. What will governments do to make it less attractive for other operators to buy the lightly used aircraft ratherthan the subsidized new production that is keeping workers working and the manufacturing economy humming?