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This is just a question I'm throwing out there. What is the evidence that Boom will go bust? Honestly seems like a lucrative venture producing jets that can fly to any where in the world in 4 hours. The business travel world would love that. The company has been in business for a while now and I would think they would have gone bust several years ago if the company were on shaky grounds. In addition Boom Supersonic already has a big customer. United Airlines have already purchased more than a dozen of planes and they haven't been manufactured yet. I also suspect at some point they could secure government contracts with the Airforce. In recent years the Airforce, NASA etc has been leaning more and more on the private sector.
There's no evidence whatsoever, and they may well go on to become a household name. It's naive though, not to understand the myriad challenges facing a start-up airline in 2022. While any commitment at all from a major carrier is a promising sign, it should be understood that United isn't exactly jumping in with both feet. On the other hand, I'd have made the same bet against Hoka jumping in to compete against Saucony and Nike. We shall see.
There's no evidence whatsoever, and they may well go on to become a household name. It's naive though, not to understand the myriad challenges facing a start-up airline in 2022. While any commitment at all from a major carrier is a promising sign, it should be understood that United isn't exactly jumping in with both feet. On the other hand, I'd have made the same bet against Hoka jumping in to compete against Saucony and Nike. We shall see.
One thing to point out. This is no ordinary aircraft manufacturer. Yes Covid has done a number on the economy and even air travel but that will pass even if Covid is here with us to stay. The economy and airlines will adjust especially as we see more treatments that basically keep people from dying and it becomes nothing more than the flu. But like I have stated this is no ordinary aircraft and its something that could change aircraft travel as we know it. We don’t have a crystal ball to know exactly what will happen but like I said this is a venture that the Triad needs to be excited about. If the Triad wants to see the kind of economic growth we see in the Triangle and in Charlotte then the region needs to become a leader in something and not a follower like its been doing the past few decades trying to duplicate what the Triangle has been doing. With that comes risk but that is the price to pay if the Triad wants to become a world class business destination and see the kind of growth that our neighboring metros are experiencing. If this becomes a success, the Triad becomes the world leader in the manufacturing of advanced commercial aircraft that travels faster than the speed of sound and that is a big deal. In September 2020, Boom announced that it had been contracted to develop the Overture jet for possible use as Air Force One! Boom has said it is working with the U.S. Air Force for additional government applications of the Overture jet as well. When you have major airlines such as United and the U.S. government signing contracts with Boom Supersonic,
that's very promising. Then there is the echo effect in attracting suppliers and other associated industry to the area that can take a life of its own. This is definitely worth the risk no matter what happens. And who knows, if Boom really takes off at PTI and eventually expands to become a major manufacturing operation, there's a chance they could relocate their headquarters from Denver to Greensboro much like Honda Aircraft Company which has its world headquarters on the same campus with its manufacturing facilities. But we'll just have to see what happens.
This is just a question I'm throwing out there. What is the evidence that Boom will go bust? Honestly seems like a lucrative venture producing jets that can fly to any where in the world in 4 hours. The business travel world would love that. The company has been in business for a while now and I would think they would have gone bust several years ago if the company were on shaky grounds. In addition Boom Supersonic already has a big customer. United Airlines have already purchased more than a dozen of planes and they haven't been manufactured yet. I also suspect at some point they could secure government contracts with the Airforce. In recent years the Airforce, NASA etc has been leaning more and more on the private sector. Once Boom starts manufacturing the jets the company will be the world leader in producing commercial jets that fly faster than the speed of sound. Yes there is some risk, but if the Triad wants the kind of economic growth we see in areas like Charlotte and the Triangle then the region needs to become a leader and not a follower. Taking big risk is the price for such success. Research Triangle Park was a risk when it was envisioned in the 1950s and 60s and it paid off.
Of course, nobody knows whether or not BOOM will succeed commercially at this point. It’s a sleek aircraft and the concept is really cool, but totally unproven. And therefore, more risk is involved for PTI versus a Honda Jet expansion for example. It will be years before anybody knows if BOOM will succeed or not. And, there are other companies pursuing supersonic commercial aircraft , with potential military applications as well.
The company was established in 2014. So far, they have not constructed a single aircraft except for a 1/3 scale model which has yet to be flight tested (the test flight has been delayed several times since 2017 due to various technical problems). The biggest problem that they face, in my mind, is to make it commercially viable by keeping operational costs and ticket prices competitive with first class ticket prices offered today. Concorde was enormously expensive to fly, and it therefore attracted a very small niche market. If BOOM is unable to achieve this primary goal of offering supersonic flights to the general public at pricing competitive to standard flights, then it will never succeed as intended. In the meantime, they continue to burn through their VC funding.
The orders that they received are conditional on meeting very difficult specifications, from what I have read. They are conditional orders and are not binding.
Of course, nobody knows whether or not BOOM will succeed commercially at this point. It’s a sleek aircraft and the concept is really cool, but totally unproven. And therefore, more risk is involved for PTI versus a Honda Jet expansion for example. It will be years before anybody knows if BOOM will succeed or not. And, there are other companies pursuing supersonic commercial aircraft , with potential military applications as well.
The company was established in 2014. So far, they have not constructed a single aircraft except for a 1/3 scale model which has yet to be flight tested (the test flight has been delayed several times since 2017 due to various technical problems). The biggest problem that they face, in my mind, is to make it commercially viable by keeping operational costs and ticket prices competitive with first class ticket prices offered today. Concorde was enormously expensive to fly, and it therefore attracted a very small niche market. If BOOM is unable to achieve this primary goal of offering supersonic flights to the general public at pricing competitive to standard flights, then it will never succeed as intended. In the meantime, they continue to burn through their VC funding.
The orders that they received are conditional on meeting very difficult specifications, from what I have read. They are conditional orders and are not binding.
I've looked into that and the Boom company has learned from past mistakes with the Concorde jet. They have been making changes in not only material design but making the jet a lot more fuel efficient. They are addressing the issues that led to the demise of the Concorde jet to make this commercially and financially viable. Like anything new, service will be expensive (much less than the Concorde jet). But we are not talking about this jet replacing the thousands of commercial airliners flying the skies overnight. This will start out as a niche airline service, it will have much smaller seating capacity (about 80 seats) than a typical airliner. This is not something that the general public will be using to fly to New York or elsewhere for leisure travel or to see relatives. For now this is marketed for company/business travel which are able to pay the steeper fees for the convenience of getting from point A to point B in over half the time it would take using a typical airliner. Companies like United have done their homework and realize there is a demand, otherwise they would not have entered into preliminary contracts with Boom to produce their jets. Keep in mind there are government applications with this jet as well. The Airforce has already signed contracts with Boom to produce jets for them and the government even has a contract for possibly producing this jet for the use of being Airforce One for the president. Of course contracts aren't binding because certain specifications and safety measures must be met before the U.S. government or United sign the dotted line. But the real success of the company won't be realized for another 10 to 20 years. The first jets will roll out in 2029.
There's no evidence whatsoever, and they may well go on to become a household name. It's naive though, not to understand the myriad challenges facing a start-up airline in 2022. While any commitment at all from a major carrier is a promising sign, it should be understood that United isn't exactly jumping in with both feet. On the other hand, I'd have made the same bet against Hoka jumping in to compete against Saucony and Nike. We shall see.
Not just startups but all types of commercial aircraft makers and operators.
Two of the biggest that immediately come to mind, aside from COVID impacts, is the global push for cleaner sources of travel and the rising cost of fuel. There's no way to know at this point what the long term impacts of all of these challenges will be on the airlines in years to come.
Being a savvy investor, i'm sure that most private investors would not invest their money in this industry.
But what gets built will be specific to BOOM's needs. This isn't exactly a generic manufacturing plant. The specifications would really only work for a limited number of companies.
If BOOM goes bust, it would difficult to find a replacement. And there would be more money needed to make changes to fit the new company's specifications.
No offense, but you KNOW this how, exactly? Obviously the building will be constructed for BOOM, but I don't believe you have any real, detailed and specific knowledge of the building, how its to be built, what could or would need to be modified in order for another company to use it, or how difficult it may or may not be for another company to make use of it. And even if we stipulate it could only be used for aircraft manufacturing/maintenance, there are already substantial companies in that field adjacent to this site. Not to mention the possibilty of other companies in the field that may be attracted to an existing building. That would be a huge draw to other companies in the industry.
Not just startups but all types of commercial aircraft makers and operators.
Two of the biggest that immediately come to mind, aside from COVID impacts, is the global push for cleaner sources of travel and the rising cost of fuel. There's no way to know at this point what the long term impacts of all of these challenges will be on the airlines in years to come.
Being a savvy investor, i'm sure that most private investors would not invest their money in this industry.
I agree with you that this is a big concern but Boom seems to take sustainability seriously. You can read about it in their website. It could be BS, but it appears like they’re making more of an effort than other companies.
I’m curious as to what industry you think investors are interested in. Non travel related investments?
I agree with you that this is a big concern but Boom seems to take sustainability seriously. You can read about it in their website. It could be BS, but it appears like they’re making more of an effort than other companies.
I’m curious as to what industry you think investors are interested in. Non travel related investments?
Yes. The airlines and anything travel related are too tied to the economy and geopolitical events. During economic downturns those industries are very negatively impacted.
Real estate, healthcare, pharmaceuticals, biotech, high tech, and financials are all good long term industries to invest in.
Yes. The airlines and anything travel related are too tied to the economy and geopolitical events. During economic downturns those industries are very negatively impacted.
Real estate, healthcare, pharmaceuticals, biotech, high tech, and financials are all good long term industries to invest in.
The domestic airline industry would have gone bankrupt because of covid-19, had the government not bailed them out. Now companies realize that much of the corporate travel (not all) can be reduced / eliminated and handled via Zoom. Corporate travel has always been the cash cow for airlines, and that cow is now low on milk.
The result: fairs for the John Q Public leisure travelers will sharply increase. It remains to be seen if Ma and Pa are willing to pay the higher costs.
I've looked into that and the Boom company has learned from past mistakes with the Concorde jet. They have been making changes in not only material design but making the jet a lot more fuel efficient. They are addressing the issues that led to the demise of the Concorde jet to make this commercially and financially viable. Like anything new, service will be expensive (much less than the Concorde jet). But we are not talking about this jet replacing the thousands of commercial airliners flying the skies overnight. This will start out as a niche airline service, it will have much smaller seating capacity (about 80 seats) than a typical airliner. This is not something that the general public will be using to fly to New York or elsewhere for leisure travel or to see relatives. For now this is marketed for company/business travel which are able to pay the steeper fees for the convenience of getting from point A to point B in over half the time it would take using a typical airliner. Companies like United have done their homework and realize there is a demand, otherwise they would not have entered into preliminary contracts with Boom to produce their jets. Keep in mind there are government applications with this jet as well. The Airforce has already signed contracts with Boom to produce jets for them and the government even has a contract for possibly producing this jet for the use of being Airforce One for the president. Of course contracts aren't binding because certain specifications and safety measures must be met before the U.S. government or United sign the dotted line. But the real success of the company won't be realized for another 10 to 20 years. The first jets will roll out in 2029.
Well, maybe they have but in roughly eight years of being in business, they still haven’t figured out how to make this particular plane fly. They’ve postponed the original test flight, using their 1/3 scale model, for going on 5 years now, due to ongoing technical issues.
The problem that I see (as I previously mentioned) is that they are not looking to fill a niche market, but they want to fly the masses anywhere in the world for fares comparable to today’s first class tickets and then eventually for a $ 100.00 flat rate. I don’t think that it’s realistic although I believe that they will likely overcome the technical issues and build a plane. But you can’t have it both ways, being fast and cheap.
There are other competitors in this space, and the US Airforce is also contracting with at least one of the leaders in this field, if not more. This other company is not chasing the mass market, at least not yet.
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