Cessna ups price for Skycatcher

[Admin]

In the Media section:

 

http://www.recreationalflying.com/threads/cessna-ups-price-for-skycatcher.30046/

 

Interestingly while the 162 is built in China, China's biggest aviation academy with over 8,000 students has just purchased 20 Cirrus SR20 aircraft:

 

http://www.recreationalflying.com/threads/largest-flight-school-in-china-selects-sr20.30117/

 

 

[David Isaac]

That is a ballsy move; I wonder how many sales that will cost them ... are they really that good a trainer that people will pay that much more compared to other trainers out there?

 

 

[dazza 38]

The word on the street is that there a alot of un happy customers.Its maybe OK for cessna to say.You can have your deposit back.But that does not help individuals or flying schools who have borrowed or put a financial plan together based on the original price.A extra $40 000 is a lot of extra money to cough up.There would be hardly any more aircraft available for delivery this year with approx 5 weeks left of the year.

 

 

[facthunter]

The Whitney Boomerang is a true trainer waiting for a market.

 

re the C 162, The deposits have provided the cash-flow and that should have fixed the price. Might be due to exchange rate fluctuations. It's a fairly high percentage increase. Nev

 

 

[Litespeed]

I doubt exchange rates have much to do with it.

 

The Alan Joyce method is alive and well in Cessna.

 

Maybe they have Sol Truhio on the board?

 

Screwing customers like this is more of the same, and you can bet the excuse is nonsense.

 

Phil

 

 

[Guest 172M]

A glassed up Tecky will run out around the same price... Don't forget when the order slots and deposits were taken in 08 the AUD was around .85 US

 

All Cessna have done is what Henry Ford did 100 years ago....... Any colour you like as long as it's black..... Keeps the ongoing production costs down and stabilizes the parts supply chain, Don't forget the production (labour costs) in China have increased by 30% in the last two years and the Y has been artificially inflated by the Chinese Govt.

 

As for Cirrus in China... Well ,China owns the company!!! Add to that Teledyne Continental. Makes sense to by your own!!!

 

 

[Guest 172M]

BTW the refundable deposit for the C162 was $5K US

 

 

[Powerin]

According to one report I read some of the price rise is for increased equipment levels but $20,000 of the increase is basically to make a profit on the Skycatcher.....

 

Cessna spokesperson Diane White said the price increase was made necessary by Cessna’s commitment to sustain piston airplane production. “The aviation world is a whole different picture than when the Skycatcher was announced and we must sell the airplane at a price that makes the program sustainable,” she said.

[Guest 172M]

So be it. If they can't turn a profit they don't have a business.... Look at the rest of the world today!!! The labour cost increases in China have reduced their margins significantly, so streamline production ,go to Garmin and the like suppliers and tell them your are able to increase there sales to you by say 30% and then ask them to look at their price structure. Times are tough out there! And will get worse!

 

 

[Powerin]

So be it. If they can't turn a profit they don't have a business.... Look at the rest of the world today!!! The labour cost increases in China have reduced their margins significantly, so streamline production ,go to Garmin and the like suppliers and tell them your are able to increase there sales to you by say 30% and then ask them to look at their price structure. Times are tough out there! And will get worse!

Absolutely.....I wasn't saying it was a bad thing, just giving a reason.

 

 

[dazza 38]

LOL you guys are worried about cessna making a profit on a little aircraft, known as the 162. It is a drop in the ocean on what they make on business jets.IMO they have jacked off alot of people.The first 500 odd A/c where destined to "Cessna Dealerships in the states as a demo aircraft.They had to order the A/c as apart of their dealership requirements.Apparently from what I have read.Not concrete.

 

 

[turboplanner]

That's normal procedure in a Dealer Agreement Dazza.

 

The interesting thing here is that of Chinese labour costs have gone up 30%, they are likely to keep going, similarly to what happened in Japan, and the world's cheap source of mechanised products will begin to drift to another country, so we might be seeing the beginning of the end of the Chinese honeymoon.

 

 

[dazza 38]

That's normal procedure in a Dealer Agreement Dazza.The interesting thing here is that of Chinese labour costs have gone up 30%, they are likely to keep going, similarly to what happened in Japan, and the world's cheap source of mechanised products will begin to drift to another country, so we might be seeing the beginning of the end of the Chinese honeymoon.

I was thinking the same thing Turbo, 30% labour increase is a lot in 3 years.Maybe Korea, or even the Philippines may be a better place for manufacture.Bonanza aircraft company in the philippines,do a fantastic job building the quick build kits for Vans and a quick build kit for Titan Aircraft ie- Mustang

 

 

[David Isaac]

Korea's day has also gone Daz, just like China will. At the moment India is shaping up to be the new China. If we wait long enough our turn will come up again. OOOhh did I really say that.....

 

 

[dazza 38]

Its a worry, do you guys reckon that maybe the manufacturer in China may have under quoted the airframe build costs at the start.And now are trying to recoup profits under the excuse of Labour costs? Just a thought.

 

 

[Admin]

Wonder if the value of the USD has anything to do with it

 

 

[fly_tornado]

has anyone considered that Cessna being Cessna they realised they could charge more and still book out there production schedule...

 

 

[turboplanner]

Wonder if the value of the USD has anything to do with it

All of these things come into play. The trend to search out third world countries with cheap labour followed the successful integration of african americans into US society in the 1960's. That was when cheap/underpaid labour ended in the USA.

 

If a person in a third world country can't read and write, he can't read a tape measure, or a torque wrench or machine something to a tolerance of .0003 inch.

 

With education they learn how and eventually come of age where they are capable of making a car or aircraft.

 

The different cultures of course have different attitudes to quality, integrity and productivity, but eventually a new one comes to the surface.

 

 

[fly_tornado]

I think you underestimate the impact containerisation has had on the global economy

 

 

[Yenn]

Who says the days of cheap labour are over. The USA has a massive pool of cheap labour, poorly educated and kept in fear of losing their jobe. It is not the wonderful country they would like us to believe.