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wheslley_eurich t1_isufduu wrote

I remembered that saying about aviation. Q: you know how turn into a millionaire in the aviation industry? A: being a billionaire. All this money on the table but the profit is so low.

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cyberentomology OP t1_isuhc5b wrote

“It’s OK if we’re losing money, we’ll just make it up on volume”

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cyberentomology OP t1_isugz5b wrote

It’s still more profitable than retail…

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wheslley_eurich t1_isuh91u wrote

Yes but historically aviation companies have a very short life compared to another industries

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cyberentomology OP t1_isycb5d wrote

It’s not only utterly brutal on cash flow, it’s also extremely capital intensive. Which is why a few people with access to large amounts of capital (like Udvar-Hazy, and GE) made themselves incredibly wealthy by allowing airlines to convert those massive capex into much more manageable opex.

There is a saying is that “if it flies, floats, or f🤬ks, it’s a lot cheaper to rent it”. This applies to the airline industry in a big way.

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