Re:The Concorde Fallacy and why people make bad decisions
by valuearb on Sunday July 19, 2020 @06:24PM
(#23892955)
The planes were facing expensive maintenance costs, the operating profits weren’t going to last. Plus the planes were very unsafe., and couldn’t be easily brought up to modern safety standards.
Clearly it wasn’t going to pay off the investment, but it didn’t make sense to retire it while it was making some profit to recoup on the losses.
During development it was assumed that demand would be much higher, so you can only say that they should have stopped with hindsight. To be honest the value proposition seemed pretty good on paper - half the journey time for 20% more cost compared to a first class ticket, at a time where first class was the market trajectory.