Pretty much all the issues that Boeing came up with this time...

Pretty much all the issues that Boeing came up with this time (eg corrosion testing the coating) should be non-issues in future for other applications.

There were some interesting nuggets in the report. Whilst valuation conclusions are RAAS' you have to assume the inputs eg pricing came from management. I had previously said I thought their model of a licence fee based on sharing the cost saving (for CVM) was going to be a hard sell to the airlines, it seems they have dropped it since it is not included in these calcs.

A little while back people were wondering what their new firefighting radio sold for. Seems to be USD 15k at a good margin given own IP:


That would actually seem to be a more valuable market for them than 737 APB (taken in isolation) as the 737 APB will be a "once and done" for the affected aircraft, whereas that firefighting fleet I imagine has a reasonably higher turnover/shorter life of aircraft and therefore an ongoing replacement opportunity.

The report has been prepared on a more conservative basis than management estimates:




That's 500 + Delta. So revenue would be 71 x $40k ($2.8m) + 500 x $100k ($50m) based on management's target. Whereas their valuation is based on: