Submitted by ajmilan on September 27, 2011.
Two other near term hurdles remain. Enough sales have to occur in the U.S. before insurance will be set at reasonable rates (lack of history for this aircraft) and loans are easier to secure.
Two other near term hurdles remain. Enough sales have to occur in the U.S. before insurance will be set at reasonable rates (lack of history for this aircraft) and loans are easier to secure.
Usually it takes about 25 aircraft in the country before the insurance becomes manageable, but with a little education to the insurance companies about the maintainability and ease of repair with this aircraft specifically, we were able to get a good rate on the first aircraft. Insurance is available...it is the financing side that is more difficult right now.
Currently the banking industry is quite tight-fisted about any aircraft that is going to go to a flight school as they are extremely risk adverse now. That is currently the bigger barrier to entry. We are diligently working on a shared-ownership program idea that will allow one or more owners to purchase an aircraft without having to endure the banking industry pain! Private funding solutions are also looking more and more attractive for the lighter side of the aviation industry.
The low overhead and small workforce that is maintained by BRM Aero s.r.o. will also be an advantage in this industry. Too many times, large manufacturing facilities with extreme overhead cost issues and large payrolls, have been the end of light aircraft manufacturers. Slow, steady growth, with a plan to deal with times of stagnant sales, will be key to BRM Aero's financial security and survival. Innovative planning with their importers and dealers will be paramount to their continued success.