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Initial Capital Requirements: - Huge initial development period and very high investment costs, tooling costs, and WIP are necessary even before the company starts producing and selling aircrafts. It takes over 5 years of development and production costs before company starts earning revenues. Commitment to buy and investments from launch customers are crucial.
2. Economies of Scale: - Company had to have a substantial amount of orders in order to earn economies of scale. Otherwise the cost of production would usually be more than the selling price of the aircraft.
3. Government Role: - Government is an important stakeholder for the aircraft business...
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