May 16, 2004 at 7:14 pm
I finally figured out that the cost of a plane is not directly proportional to its quality. A plane’s cost is largely dependent on the cost of labor in the country that the plane is made in.
For example, France’s cost of labor is about 5 times that of China’s. So, if a Mirage-2000-5 is made in France, its cost on the International market is about $60 million. However, if the same Mirage-2000-5 is made in China, it would cost about $15 million on the International market.
People say that because FC-1 is $15 million, thus it’s cheap and crappy. Yet, they forgot that its $15 million made in China. The same plane would be about $60 million if it’s made in U.S. or France.