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Politics : Politics for Pros- moderated

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To: kech who wrote (117589)	6/1/2005 7:37:10 PM
From: aladin	Read Replies (3) of 794001

Kech, Mike: I was working for Boeing back in the 80's and early 90's and was peripherally involved with the design teams (working for Boeing Computer Services supporting them). The result is that I got to see a lot of the proposed designs - 737 800, 777 and variants and of course the stretched 747 update and the 7B(ig)7 concept that looked a lot like the 380. The last two were reviewed in 1992. What happened? Market research, costs and related factors. Boeing was launching the 777, and despite any European perceived handouts, we had to invest 4 Billion of private money in its design and the construction of facilities. The customer research did not show enough market to warrant the investment (at that time) to launch either the 7B7 or enhanced 747 update. From friends still at Boeing - market research examined the market and competition again when the 380 was being discussed. Despite the bragging rights issue - the market was still seen as soft - so research began on alternatives. The Sonic Cruiser and what is now the 787 were considered and the 787 won the internal competition. Since Airbus gets direct subsidy of all its development costs - they may find a market for the A380, but its still perceived as niche. Airbus does make an operating profit - but they do get those big monies. For example the 787 has made a splash, so Airbus wants a competitor and the Governments are again providing a 100% development subsidy to update the 350. Its an employment project. But does the US subsidize Boeing? No, but some local governments do provide property tax relief to attract plants. Most of the Euro animus comes from the 707 - which killed all of the European competitors back in the late 50's and early 60's. It was derived from a military tanker aircraft. Since that time the reverse is true - Boeing's military aircraft are generally derived from civilian transports (speaking of legacy Boeing - not McDonnell/Douglas). And the EUro's should be careful of playing the Military card - Airbus now makes military transports and is competing internationally with them - any claim of military subsidy goes two ways now. John

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