Tuesday, 21 February 2017

Wonkbook: The economic reality behind the Boeing plane Trump showed off

By Max Ehrenfreund NORTH CHARLESTON, S.C. -- President Trump visited a Boeing factory Friday to show off the company's newest model of the 787 Dreamliner, the latest in a series of planes that experts describe as a marvel of aeronautical engineering. The fuel-efficient construction allows the newest model to fly from London to Cape Town, …
 
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Workers walk through the Boeing South Carolina Plant while voting started on Wednesday whether the plant will be unionized in North Charleston, South Carolina, U.S. February 15, 2017.  REUTERS/Randall Hill

Workers walk outside the Boeing South Carolina Plant on Wednesday. (Randall Hill/Reuters)

By Max Ehrenfreund

NORTH CHARLESTON, S.C. -- President Trump visited a Boeing factory Friday to show off the company's newest model of the 787 Dreamliner, the latest in a series of planes that experts describe as a marvel of aeronautical engineering. The fuel-efficient construction allows the newest model to fly from London to Cape Town, South Africa, without refueling — an extraordinary distance for a 330-passenger plane.

There is one number on which the Dreamliners are still coming up short, however: return on investment. Analysts say Boeing has sunk tens of billions of dollars into designing and building the various models of the 787. Investors who have been with the project since the beginning may never fully see their money back.

"If you view it through a technology lens, it's a great success," Barclays analyst Carter Copeland said. "If you view the program from its inception, it's a big financial failure."

Read the rest on Wonkblog


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