A Market Perspective From the NAAA

The market has not changed a great deal since last month although declines continue on much of the piston single and twin segments. With fuel costs still very high personal flying is down. At my home airport where we used to see all kinds of activity in the afternoon and early evenings there is little. Even business flying is down to some degree, but the turbine market is still strong in most areas.

As I have remarked in earlier emails buyers want the latest and greatest. It doesn’t matter what segment of the market you are looking at. Older pistons, if they have not been upgraded with new avionics, have low-time engines and good paint and interior, sit unsold. Many owners have let their engines run out and don’t want to spend the money to overhaul them. But buyers want to buy airplanes that are ready to fly. They are not interested in shelling out a lot of cash after the purchase is made and then have to wait a couple of months before they can fly their new bird.

Older turbines share the same fate. I ran across a G II recently that had a poor avionics package that no one was interested in. It has been for sale for years with no apparent interest. Only the best are  selling, leaving the market with the leftovers.

News from the General Aviation Manufacturer's Association (GAMA)

From AOPA:   Piston-engine aircraft sales are down slightly for the third quarter of 2007, but manufacturers remain optimistic.

Shipments of piston airplanes manufactured worldwide decreased by 6 percent, going from 1,975 for the third quarter of 2006 to 1,857 shipments this year. Turboprop shipments, however, were up by 14.5 percent, and jet shipments saw a 20.9-percent increase, according to figures released by the General Aviation Manufacturers Association (GAMA).

"This is the third consecutive quarter where growth in the piston market has wavered. We are encouraged, however, by the industry's commitment to strengthening this segment with the introduction of products that will bring new pilots and new customers into this market," said GAMA President and CEO Pete Bunce. "The good news is that our manufacturers in this segment have not reported a noticeable decline in interest in the piston market."

Cessna Aircraft shipped the most single-engine airplanes with 507 when combining the 172 Skyhawk, 182 Skylane, and 206 Stationair lines. Cirrus Design, however, shipped the most four-seaters with 461. Diamond isn't far behind with 356 shipments for its two- and four-seat models.

Columbia Aircraft shipped 131 followed by Hawker Beechcraft with 81; Mooney Airplane, 59; American Champion, 50, Eclipse Aviation, 48; Maule Air, 30; and Liberty Aerospace with 28.

Turboprops Gain More Ground

From AVweb:  With jet fuel prices in the $3-a-gallon range, the fuel efficiency of turboprops is boosting sales and the total number of shipments was up 14.5 percent in the first nine months of 2007 over 2006. A total of 293 general aviation turboprops were delivered in the period compared to 256 in the same time last year, according to the General Aviation Manufacturers Association (GAMA) third quarter report “…we expect shipments to continue on a strong, upward trend in the months ahead,” said GAMA President Pete Bunce. Hawker Beechcraft’s King Air remained the most popular turboprop with a total of 41 deliveries. Pilatus’s big single, the PC-12 accounted for 27 deliveries and the Cessna Grand Caravan recorded 20 sales. Piper delivered 13 Meridians and 11 TBM 850s found homes.

Red Baron Squadron Grounded

From AVweb: 

The Red Baron Squadron, a team of four vintage Stearman biplanes that has flown formation aerobatics at air shows for 28 years, will fly no more (PDF), the team's sponsor, the Schwan Food Company, said this week. "The Red Baron Squadron has been an incredible asset to our company and we are very proud of its long, successful history," said Bill McCormack, executive vice president. "The retail grocery industry has experienced considerable change over the past few years. And, as a result, we have decided to refocus our Red Baron marketing program and to discontinue the Red Baron Squadron." The team flew at more than 2,000 air shows and gave rides to more than 80,000 passengers. They won the Art Scholl Award in 1995 and the Bill Barber Award in 1993.

Forty-two pilots have been members of the squadron. "We are very proud to have been a part of such a legendary program," Jayson Wilson, director of flight operations and left wing pilot, said in a news release, speaking on behalf of the squadron's pilots, technicians and administrative staff. "We can all say we were a part of something really special. The air show community and our fans have been great. We'll miss all of them."

Cessna Wins Columbia Bid

From AOPA:  Cessna Aircraft will acquire the assets of Columbia Aircraft of Bend, Ore., following a successful bid for the firm in U.S. bankruptcy court on Nov. 27. Cessna says it wants to “broaden its single-engine product portfolio.”

Cessna’s winning bid was $26.4 million, but the transaction will not be completed until Dec. 4. Cessna officials said Columbia will take on the Cessna name, and the dual-turbocharged 310-horsepower Columbia 400 will become the Cessna 400, while the normally aspirated 310-hp Columbia 350 will be named the Cessna 350. Both use the Continental 550 engine.

Cessna plans to make “significant” investments in the Oregon facility which will become one of Cessna’s six manufacturing facilities. Former Columbia aircraft will be supported by the Cessna service centers and Cessna parts distribution. Cessna plans to contact current owners.

“It only makes sense that we fully embrace these two new aircraft and their owners as members of the Cessna family,” said Cessna Chairman, President and CEO Jack J. Pelton.

Aircraft Age Differently

From AOPA:  AOPA is making sure the FAA understands that safety measures addressing fatigue in aging aircraft should be specific to the type of aircraft and the kind of flight stress each endures.

“AOPA understands the seriousness of structural fatigue and is working to educate the general aviation community on how to maintain their aging aircraft,” said Melissa Rudinger, AOPA vice president of regulatory affairs. “But the FAA shouldn’t apply a broad-based, fleet-wide fix to specific aging aircraft problems. So far, the FAA seems to be taking a reasonable approach by developing a fatigue management program.”

The FAA has proposed a draft advisory circular (AC), Fatigue Management Programs for Airplanes with Demonstrated Risk of Catastrophic Failure Due to Fatigue, that provides guidance on how to develop and implement a fatigue management program for GA aircraft and transport category aircraft.

AOPA has told the FAA that a fatigue management program would be one acceptable way to address the problem. However, the association wants the FAA to be prepared to provide tailored guidance to the GA community on a case-specific basis. AOPA also hopes the FAA will continue to base airworthiness directives on aircraft usage and known fatigue issues instead of issuing a fleet-wide mandate.

For example, a Cessna Aerobat used for personal pleasure flights, like short hops to fly-ins, would not face the same fatigue issues as an Aerobat used extensively for aerobatic training would face. In cases like these, a fleet-wide maintenance requirement might be too excessive.

AOPA also reminded the FAA that the GA industry is reaching out to educate aircraft owners about the aging aircraft issue. In October, the AOPA Air Safety Foundation launched its Aging Aircraft online course that introduces pilots to the need to properly maintain the aircraft structure. So far, more than 7,000 people have completed the hour-long course. In addition, the American Bonanza Society is conducting a spar study for its Bonanza and Baron aircraft.

“The FAA and GA industry must continue to work together to educate aircraft owners and create appropriate safety measures to keep aging aircraft airworthy,” said Rudinger. “AOPA will be working every step of the way to ensure appropriate safety measures are developed and are affordable for our members.”