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The Extra 500 Now Has a Chance

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Key Takeaways:

  • Small airplane manufacturing often faces bankruptcy due to high development costs, but this can create a paradoxical opportunity for new companies to acquire assets and designs cheaply.
  • Ken Keith, CEO of the new Extra Aircraft, LLC, is notable for understanding these financial realities, having acquired the Extra 500 project at a deep discount following its predecessor's bankruptcy.
  • The Extra 500 is positioned as a unique and cost-effective single-engine turboprop, utilizing a fuel-efficient Rolls/Allison 250 engine and innovative design features to target a niche market with lower operating costs and a more accessible price point.
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In the mercilessly cruel financial world of small airplane companies, and the new companies that plan to build airplanes, bankruptcy may offer the only chance of success. Nobody can, you see, sell enough airplanes quickly enough to recover the development costs of starting a company and designing and certifying an airplane. That means somebody needs to lose millions of dollars along the way to give the infant airplane a chance to make it.

That’s what has happened to the Extra aircraft company and its Extra 500 single-engine turboprop. Millions are gone following the bankruptcy of Extra, but that loss now gives the new company at least a chance for success.

FLYING Staff

FLYING Magazine is a one-stop resource for everything aviation, including news, training, aircraft, gear, careers, photos, videos, and more.

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