Steep Glider Price Rise. What about us?

[Captain]

The local DG Agent has posted the following explanation of steep price rises. I wonder when or whether we'll see that?

 

<H2><A name=latest></A>The latest developments in prices for glider manufacturers</H2>

 

I really understand your reactions only too well. In fact I can practically hear you groan at the sight of the latest prices of new gliders made in Germany. The least I can do, I feel, is give you some background information on current developments and how these affect our prices.

 

 

 

Can you imagine that your glider gets more expensive because Airbus is developing the A380? And that things will really start getting bad once the Boeing 787 goes into production? Unfortunately that’s exactly what’s going on.

 

 

 

In spring 2006, our epoxy resin supplier confronted us with a price increase of 25%. We pulled out all the stops and still only managed to knock him down to “a mere†18%, no further. The reason given? Well, raw material prices, of course. Especially oil prices, as oil is the feedstock. However, more important is the worldwide shortage of essential materials as a result of the terrific increase in demand from EADS for the new Airbus. There is more aviation-grade resin built into just one of those aircraft than we use up in an entire year!

 

 

 

This September, things really became critical:

 

There is no more carbon fibre fabric available, not of any sort. And again, it is Airbus who are buying up all the roving supplies worldwide, the material the fabric is made of. Most of the carbon fibre comes from Japan, and Japan has virtually exhausted all its production capacities. One shipment has just arrived in Europe, and the yarn is now being woven into fabric everywhere so that we will receive some in a few days’ time. However, we will only get a part of the quantity ordered, just as in times of food rationing.

 

 

 

That is why, a few days ago, our wing building department was forced to down tools.

 

Faced with simultaneous price increases of 15% now and 50% in a few months time, and the current shortages, we have our backs to the wall, as you will understand.

 

The question is, what will happen first: Will more production capacities come on stream first, or will the A380 go into production first? That will determine whether we will be able to lay our hands on enough raw materials in the coming 12 months.

 

 

 

And when Boeing’s “Dreamlinerâ€Â, the 787, is ready we will be faced with the next lot of problems, because that aircraft contains even more carbon components than the A380. The situation is a very very serious one, and we have no idea how it will develop! What did we therefore have to do once again on 1st October in order to cover our costs?

 

You guessed it .....

 

 

[Admin]

Cap't - I also posted in the CT user forum about a $13,500 price rise in the CTsw for next year for the very same reason. Seems all carbon fibre aircraft are having huge price increases - lucky my CT is only 6 weeks or so away at the old price:)

 

 

[Ultralights]

so, um, how do WE make carbon fibre cloth then..........and sell it to the world and all become filthy rich!