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Old 29th Jun 2017, 10:23
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Another St Ivian
 
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Originally Posted by Heathrow Harry View Post
well the line is paid for so you have no major investment
...only it isn't.
  • All the fixed assets (tooling, buildings, officers) depreciate on the balance sheet.
  • The operational costs of wages for staff, recurrent training, and all supporting logistics (Stores, etc) continue and inflate with time
  • The supply chain would need to be kept viable. Boeing's suppliers are not also going to hang around on the off-chance of getting onesy-twosey orders. In fact Boeing's suppliers could very well hit them with Minimum Order Quantities, meaning you pay a lot up front to build a one-er, and sit the surplus kit on the shelf (which you're now carrying on the balance sheet, depreciating, and may time-ex)

CapEx is one thing, and probably well amortised, but the on-going op costs would sting. Cash is king!
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