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Old 16th Dec 2004, 22:30
  #28 (permalink)  
cmf
 
Join Date: Dec 2004
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One comment to make on A's sizing of the market: They claim 3000 airframes, which is more than B's claims which were around 2000 airframes. The claims are interesting, because A does not have to begin to pay back its development loans till it has sold 40% of its anticipated market. Presumably A is planning to sell 50% of the 3000 frames, no? Also interesting that A380 is forecast to 1000 frames, so no loans will begin repayment till 400 are sold, and ~120 or so are currently sold. Its probably not polite to keep bringing up the loan issue, but it is a key factor in how A can get product into the market faster than B can, and the quickness of A's response to 7e7 is evidence of this.
Actually there are payments being done on every frame, just not at "full" rate as only 20% of the loan is repaid on the first 40% of the forecasted frames, making the first 40% bearing half of their share(if the forecasted frames are reached)
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