It is very obvious that the aircraft was up to Piper standards and would have been a success (or they never would have put their name on it). However, I would bet that someone at Imprimus told Piper Corp. to focus on the profit. And rightly so. With the development costs, and redesign/scale up of the Altaire to something with a wider market; and business aircraft sales set to recover before the rest of GA; and the profit in one Altaire equal to many SportCruiser sales; I am convinced it was decided that they would put the money where the return would be. That is a good business decision.
The SportCruiser seems very competitive in the marketplace; if they get a stronger dollar as an offshoot of the U.S. economic recovery (highly likely), they will have a larger profit margin, and the dealers will do very well indeed starting in 2012. I hope they all hang in there, I am confident that their patience will be rewarded.
I believe that the "divorce" will actually benefit both Piper and the new SportCruiser dealer group! Perhaps, in a show of good faith, Piper can/will "share" some details of how to run an aircraft sales, parts, and service company-after all, the split seemed to be promulgated by Piper's decision, and they DO know how to perform these functions already. The SportCruiser will not directly compete with any Piper product, so why not get along, knowing that with a good relationship, they may be able to move LSA pilots scaling up into Piper products. If handled adroitly, the split could be more than just amicable. It could also lead to a great business relationship that benefits all parties, here AND in the Czech Republic. SportCruiser customers in Europe could be steered toward Piper products also, and vice-versa for those who want to scale down to LSAs.
A win-win if played correctly. But I bet they already knew that.
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It is very obvious that the aircraft was up to Piper standards and would have been a success (or they never would have put their name on it). However, I would bet that someone at Imprimus told Piper Corp. to focus on the profit. And rightly so. With the development costs, and redesign/scale up of the Altaire to something with a wider market; and business aircraft sales set to recover before the rest of GA; andthe profit in one Altaire equal to many SportCruiser sales; I am convinced it was decided that they would put the money where the return would be. That is a good business decision.
The SportCruiser seems very competitive in the marketplace; if they get a stronger dollar as an offshoot of the U.S. economic recovery (highly likely), they will have a larger profit margin, and the dealers will do very well indeed starting in 2012. I hope they all hang in there, I am confident that their patience will be rewarded.
I believe that the "divorce" will actually benefit both Piper and the new SportCruiser dealer group! Perhaps, in a show of good faith, Piper can/will "share" some details of how to run an aircraft sales, parts, and service company-after all, the split seemed to be promulgated by Piper's decision, and they DO know how to perform these functions already. The SportCruiser will not directly compete with any Piper product, so why not get along, knowing that with a good relationship, they may be able to move LSA pilots scaling up into Piper products. If handled adroitly, the split could be more than just amicable. It could also lead to a great business relationship that benefits all parties, here AND in the Czech Republic. SportCruiser customers in Europe could be steered toward Piper products also, and vice-versa for those who want to scale down to LSAs.
A win-win if played correctly. But I bet they already knew that.
The Sport Cruiser certainly looked "Piper-ish". I'll bet that big glass canopy would turn it into a greenhouse and give you a great sunburn, even on 70 degree days.
I suspect when facing the imperative to reduce liabilities during difficult times, New Piper chose the most easily jettisonable part of their company that would get them the closest to breaking even sooner while least affecting their traditional business in North America and elsewhere. Selling one more Meridian probably nets New Piper as much profit as ten or more LSAs.
New Piper already had a competitive disadvantage by getting into the LSA game late, competing with already established LSA manufacturers—especially Cessna.
Another obstacle relates to the regulatory requirements for LSA maximum performance. All of them are designed up to the speed limit of about 120 knots plus enough useful load for two passengers, full fuel and a small suitcase or two. So there's no way to sell it based on better performance or more useful load. And can any LSA manufacturer/importer come up with an LSA with any real uniqueness or sexiness, to allow their product to rise above the competition?
Don't forget about the plethora of used certified singles and two-seat homebuilts/kitplanes available on the used market, for less than the cost of a shiny new LSA. Good examples are the Beech Sierra, Cessna Cardinal RG, Piper Arrow, Mooney M20F, Lancair 320, Glasair RG and RVs. Many are available for $90,000 or less with WAY more performance, longer range, greater utility and, in the four-seaters, greater useful load. And you can save even more $$$ by doing your own maintenance on your experimental aircraft.
What are the things a new LSAs has going for it? That new plane smell, flat panel avionics, a good warranty and a cushy interior. If that's your bag, go for it! Me, I'll stick with my steam gauge Cardinal and laugh while all the millionaires fight it out for who gets to write off the most depreciation in the next three years.
Douglas M
Surrey, BC Canada
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