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The Concorde turns out to be an economic disaster
- Words:
- 533
- Submitted:
- Sun Oct 05 2003
Have a little read: ... Name: Manya Aggarwal Date: 02/05/2003 Class: 11-G The Concorde turns out to be an economic disaster. After almost 27 years in the air, the Concorde is now calling it a day. So what went wrong? The Concorde, which was once called "the future of civil aviation", is now being labelled "a commercial disaster" and "the largest most expensive and most dubious project undertaken in the development of civil aircraft." The Economics of it all The Concorde is exiting the larger civil aviation industry mainly because in the long run its total revenue fell short of its total costs. In fact the very beginnings of the Concorde were economically marred. Projected to cost only 2 billion pounds, it underestimated its fixed costs by nearly 9 billion pounds. Its variable costs were also very high. The 100-seat Concorde used as much fuel as a Boeing 707, which had four times the passenger capacity.
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