Hacker News new | past | comments | ask | show | jobs | submit login

> Airbus got half+ ownership for a symbolic euro

And Airbus didn't even take on the huge debts the programme has accrued. They get none of the pain of the development and half the profit from sales. (Also I believe Airbus's network for sales was also considered significant by Bombardier; they may lose a fair bit of the profit from sales, but I think Bombardier were hoping Airbus's networks would increase sales sufficiently that it'd be a net gain for them.)




> Also I believe Airbus's network for sales was also considered significant by Bombardier

Absolutely, there is a reason why it got renamed to A220 instantly. In passenger planes Airbus/Boeing is like the "nobody got fired for buying IBM/Microsoft" of the IT world.

Also, their potential customers are much more likely to already have Airbus planes, so with that change you don't need another suppliers for parts and maintenance etc ... It's the same vendor.


Boeing does not make a plane small enough to compete with the A220, really.

The A220 competes with the ERJ-175/190 series. An A319 carries slightly more passengers than the largest A220, and the smallest 737NG carries 30-50 more passengers.

Boeing has never competed in the small regional jet market, and their recent attempt at a partnership with Embraer is their response to the A220.


Boeing produced the 717 until 2006, which would have directly competed with small regional jets


Yes, this is true, but the 717 was acquired from McDonnell Douglas as the MD-95, so it wasn't an organic design.

Their ending of production is another indication that they aren't interested in the market.


The value of the business roughly doubled after it "sold" half to Airbus. Financially they were no worse off and they guarantee the success of the business by hooking up with a proven partner. They get 7.5 years of the upside including all the investment by Airbus.

Sounds like a great deal to me.




Guidelines | FAQ | Support | API | Security | Lists | Bookmarklet | Legal | Apply to YC | Contact

Search: