The production economics of a very large civil aircraft

David Starkie and Simon Ellis

Journal of Air Transport Management, 1995, vol. 2, issue 1, 11-16

Abstract: A number of studies are taking place to see if there is a viable market for a very large civil aircraft capable of carrying in excess of 600 passengers. The development and launch costs of such an aircraft are very high. Based on indicative costs reported in the press, estimates are derived of how unit costs might vary with the length of the production run. These estimates are then combined with an estimate of market size to judge to what extent dividing production between rival manufacturers would add to unit costs. The indications are that unit costs would increase significantly.

Keywords: economies of scale; natural monopoly; competing production (search for similar items in EconPapers)
Date: 1995
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:2:y:1995:i:1:p:11-16

DOI: 10.1016/0969-6997(95)00020-C

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