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sseveran | 5 years ago

There is at least one YC company that would beg to differ with respect to airlines. Boom Technology.

https://boomsupersonic.com

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jariel|5 years ago

It's an example of the opposite.

'Boom' is a tiny little venture company that may or may not make actual commercial viability, in a niche sector.

Boom is not remotely trying to enter the market for real commercial traffic, which is essentially impossible for a regular private company.

There are no successful airline manufactures that exist without the expressed coordination of a national strategy.

Boeing is a 'strategic asset' - they are supported by massive military contracts and other industrial subsidies. They have Federal level support from the diplomatic corps and may involve themselves in foreign policy. Sales of aircraft may be tied to other mechanisms of statecraft.

Airbus - even more so, practically a creation of European governments.

To give an example of what happens when nations are not powerful, look at Bombardier in Canada - which was squeezed out of a more niche are of commercial aircraft by state actions.

Boeing complained to Donald Trump about 'unfair competition' - the US - against NAFTA treaty - imposed a 250% duty on Bombardier jets. To get around this, Bombardier had to drop their pants and do an ugly deal with Airbus. Eventually, this inability to flex material power in conjunction with other state assets ... and it's a flop for Canada, and a 'win' for a bigger entity backed by a more powerful state entity as the commercial aircraft business was sold off to Airbus.

If Canada had a huge domestic market, this probably would not be the case.

Edit: it's possible Boom eventually develops into a much bigger entity, maybe in 40 years, using their 'smaller, currently niche but growing industry' as an entry point. But taking on Boeing is tantamount to taking on Microsoft directly.