Originally Posted by
tsquare
I don't dispute your point here. My input to this particular argument has only one focus: That being whom I would rather see go out of business... DAL or BA. I would much rather see BA go out of business. The secondary issue is whether I believe BA is any danger of that. Absolutely not, because they do lots more than build commercial airplanes. It is up to them to produce a better product than airbus, and I believe that in many ways they do, but they also have to be price competitive. The market will determine that IF, the market is allowed to function. When Boeing gets subsidies from both another country's government AND OURS, it's not a fair market, and it is not Boeing that is ultimately being harmed. Frankly, I am surprised they can get away with it fro a legal perspective. (disclaimer: not a lawyer and not in H.I. Express) So to your last point, if the US Government were to ever get over itself, and support US businesses, those low interest loans would be available to American companies as well as government supported sand fleas. And I say all of this from the perspective of a guy that would rather sell crack than fly an airbus.
Oh, that wasn't meant for you specifically, I just used your post as an incentive to write.
I really don't think Boeing is ever going out of business in regards to it's BCA division. The logbook is way too big and the problem is the initial costs when there's a new product rollout like the 787. The 777X will be much less burdensome on the company.
So, as soon as fixed costs for the 787 development ease themselves out of the mix and net profit margins increase, it's business as usual.
The trick is how much cash flow does the company have until they're out of the jam until that happens? I am guessing they'll be A-OK.