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Old April 18th 07, 01:03 PM posted to rec.aviation.piloting,rec.travel.air
me[_2_]
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Default Airline passengers subsidizing private aviation

On Apr 18, 5:07 am, "William Black"
wrote:
"Tchiowa" wrote in message

oups.com...

On Apr 18, 3:10 pm, "William Black"
Try and look at something about a complaint by Airbus Industry to the WTO
about Boeing and the US government in 1992, revived in 2005.


You mean the one that didn't get anywhere but Airbus was using to try
to justify the enormous and constant subsidies they get from European
governments?


No.

The one where Boeing gets a huge wadge of cash from Uncle Sugar for military
research and does research into civilian or dual use applications that it
then marks 'classified'.


Probably what is being alluded to is known as "independent research
and
developement" or IRAD's for short. There was a time, long gone, that
the government would refund research dollars on "approved" programs
anywhere from about 50% to 95%. That doesn't really exist anymore.
We are allowed to "expense" our research as part of our "overhead"
charge, but that charge is a competetive feature of our bids so it
can alter the ability to win contracts in the first place. As such,
there
is a disincentive to "bill" too much research to the government.

FWIW, there is no great attraction to having something marked as
classified. It hinders the ability to use the technology outside of
military contracts. (To some extent even within them). There are
methodologies for getting the "exported" to commercial contacts,
but it is hard and leaves one in a position of having to ask
permission
of the government. The answer is not unfrequently "no".

I understand the complaint about the military contract effect upon
the commercial nature of the airliner business. But there is
no fiscal comparison to the huge loan guarentees that Airbus
got and the contracts that Boeing gets. Boeing has to use
all of the money for the military contract (less profit, which
is generally negotiated up front). SOME of the technology
assuredly is transferrable, but not as much as one might think
since military specs are often well in excess of commercial specs.
The singular largest advantage is the facilities and manufacturing
equipment. Unfortunately for Boeing, more and more of this is
being done outside of Boeing and so they lose that advantage.