Pending FAA Approval, page-399

Hi Opti,

I found the shorthand notes from 2STB very interesting from earlier last week. If the source information is correct and nothing has been lost in translation I believe it is the first time (to my knowledge) we have some sensor pricing information (which was let slip) 'from the horses mouth'.

That figure in question is the 1500 sensors Delta need to buy which Mike reportedly said at the EGM. We know the financial cost of those sensors to Delta is 6-7mil, so we're talking $4,000 per sensor Delta will be charged (which is a discounted rate at that).

My summation is as follows. This $4,000 is made up of 50% sensor cost and 50% other equipment cost ie. PM200 machines (averaged over however many sensors they service, one per plane??)

So, each sensor costs $2000 ($2500 RRP)
For each sensor sold, an equivalent amount of additional equipment is required costing $2,000 ($2500 RRP).

This is quite astonishing as it effectively doubles the way I was previously estimating equipment sales.

The above is obviously just a guess but the interesting principal which is starting to form in my mind is that sales from additional equipment could equal sales from sensors, and that is remarkable.