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Old 28th January 2012 | 22:01
  #81 (permalink)  
JohnDixson
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Joined: Mar 2007
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From: Hobe Sound, Florida
$800 Million NRE Overrun

Cdnnighthawk,

If you know there is a non-recurring engineering ( that's what you meant by NRE, correct? ) cost overrun of $800M, and you are publishing it in a public forum, then a lot of other people know that as well.

They say, " Never say Never in Aviation ", but if that were the case it would surprise me ( I mean, really surprise me ) that personnel changes have not been made at SA.

Another question that suggests itself is how SA would recover $800M on 28 production aircraft. Not 100% certain, but that's not a cost plus contract as I recall, so it's not obvious to me how SA gets back that kind of money.

Is it possible that there is an extra zero in the number you quoted and the NRE overrun is $80M ?

Thanks,
John Dixson
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