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  #244  
Old February 4th 04, 03:29 PM
Keith Willshaw
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"Spiv" wrote in message
...



You are naive. In any cases cheap capital costs are what sells to cash
strapped companies, hoping to hide the higher running costs.


Hardly, all the companies I know are keenly interested
in lifecycle costs and will eat higher CAPEX if the OPEX
savings are high enough especially since CAPEX can
often be recovered in grants.

The problem with the VC-10 as BOAC noted was that
its operating expenses were HIGHER than the 707
so they ended up ditching the VC-10's in favor of
Boeing aircraft

Note that the US airlines were hardly cash strapped in the
60's since they were in a boom market and buying new
aircraft at a rate never seen since.

Keith