Air India study: Boeing planes generate more profit

Published 9:00 pm Monday, May 16, 2005

OK, I’d promised myself that I would NOT post anything more about the STILL ongoing flap between Airbus and Boeing about the recent Air India deal.

But this report, from The Economic Times, is very interesting.

http://economictimes.indiatimes.com/articleshow/1112357.cms

Key Quote: “The Boeing deal is projected to yield A-I a net profit of about Rs 15,300 crore over a 17-year period as against a projected net profit of Rs 6,500 crore — about 50% less — if the airline had chosen to purchase an Airbus fleet. “

OK, calculating the dollar value of deals listed in crore rupees is kind of a pain — to start with, a crore equals 10 million, then you’ve got to convert rupees to dollars and if I could do that kind of arithmetic in my head I’d be building airplanes, not writing about them.

But the basic message from Air India is one that Boeing pushes hard — you’ll pay more for our jets, but you’ll make more money with them.