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Invest Like the Best with Patrick O'Shaughnessy cover image

Mark Groden - The Future of Flying - [Invest Like the Best, EP.374]

Invest Like the Best with Patrick O'Shaughnessy

NOTE

Economies of Scale in General Aviation Production

The production of general aviation craft has not yet benefited from economies of scale. Comparing the historical production rate of the Model T cars, which was 25,000 units per day in 1925, to the current general aviation industry producing about 2,500 new aircraft per year, showcases the significant difference in scale. If the general aviation industry were to produce the same volume as automotive companies, the aircraft would be million-dollar vehicles. Additionally, the simplicity of even the most complex general aviation aircraft compared to basic cars highlights the disparity in technological complexity due to production volume differences.

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