Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

A 1 lb saving saves $2,600 in fuel costs over the life of the craft.

However, an airline's break even point is a portion of that (perhaps $1,000) because the fuel costs are spread out over the life of the craft and there is an opportunity cost to spending money on the more efficient plane.

Of that $1,000, the aircraft maker will only capture a portion of the value - the airline expects to do better than break even. The airplane manufacturer may be able to charge $500 more for the aircraft.

They might hope to make 2,000 aircraft for something big like a 787 (although that number varies a lot depending on the model). That's 2,000 units times $500 = $1 million.



Aha, across all units, that makes more sense. I thought it was per unit and it off by a few orders of magnitude.




Consider applying for YC's Winter 2027 batch! Applications are open till November 2.

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

Search: