DULUTH, Minn. -- Cirrus
Aircraft led its market again last year, even though its plane shipments
remained flat and its biggest competitors showed gains.
The
Duluth-based airplane manufacturer shipped 253 of its SR-20s, SR-22s and
SR-22Ts in 2012, two fewer than 2011. It was the lowest number of
planes delivered since 2001, according to industry numbers released
recently.
Although Cirrus’ share of the single-engine piston
market slipped from 35 percent to 32 percent, it still out-sold its
competitors and continued to be the world leader in its category of
small personal aircraft. Its SR-22/SR-22T continued to be the
top-selling, high-performance plane in that category.
Its closest
competitor, Cessna Aircraft Co., shipped a total of 207 of its
comparable propeller planes in 2012, up from 181 in 2011. Diamond
Aircraft Industries followed with 93 planes, up from 72 in 2011, the
General Aviation Manufacturers Association annual shipment reports show.
Faced
with declining retail sales, Cirrus would have had substantially fewer
shipments if not for its successful entry into the international
training fleet market.
Cirrus has sold 25 SR-20s to the U.S. Air
Force Academy’s Powered Flight Program, 23 SR-20s to the French Air
Force and Navy and 20 SR-20s to the Civil Aviation Flight University of
China. Many of those sales showed up in last year’s numbers.
“We
are seeing a shift in the mix,” said Todd Simmons, Cirrus’ executive
vice president of sales and marketing. “To Cirrus’ credit, they do other
markets to offset the changes in retail.”
And more fleet sales are coming, which should improve the company’s prospects for 2013.
“Other
fleet delivers will be announced,” Simmons said. “The good news is
that’s a growing part of our business. That is part of our business that
will continue to grow.”
Down market
Still, Cirrus,
along with the industry in general, continues to feel the effects of
the economic recession that sent the industry into a tailspin.
The
2012 industry shipment summaries released by GAMA were a mixed bag.
Worldwide, piston-powered airplane shipments were down nearly 2 percent,
turboprops up 10 percent and business jets down 3.4 percent.
Industry-wide, shipments were slightly up and billings slightly down.
Richard
Aboulafia, an aviation analyst for the Teal Group outside Washington,
D.C., believes the industry has not only hit bottom but has been stuck
there quite a while.
“What you have is a delay in recovery rather
than signs of future trouble,” he said. “It’s just taking so long for
people to feel less nervous about making big investments or lending
people money.”
But if the economic recovery is sustaining, he believes general aviation will turn a corner.
“When the economy finally recovers … this industry will take off,” said GAMA president and CEO Pete Bunce during a webcast.
But more economic bumps could be near.
If
sequestration — blanket cuts to federal programs — happens next month,
the impact on the general aviation industry will be severe, Bunce said.
Maintaining the lead
With
the economic recession, Cirrus’ annual shipments dramatically declined
from a 2006 high of 721 during the industry’s heyday. Cirrus has
weathered the downturn by cost cutting, selling more fully loaded
planes, reaching out to international markets and becoming more
efficient.
“The difference today is Cirrus is a far more
efficient business at lower numbers, because we made changes in the
business,” Simmons said. “We’re being more profitable at lower volume
levels.”
In 2012, Cirrus’ quarterly deliveries steadily increased, ending with its strongest quarter in four years.
“We’re off to the best start since 2008,” Simmons said. “So we’re optimist about 2013.”
That
optimism is partly due to Generation Five, Cirrus’ redesigned SR-22 and
turbocharged SR-22T models, which can now accommodate a fifth person.
Its parts and systems were re-engineered and redesigned, along with use
of stronger construction materials, aerodynamic improvements, improved
flight performance and an improved airframe parachute system, a hallmark
of Cirrus planes.
Aboulafia said continuing upgrades and innovations are important.
“New product development and resources are always crucial,” he said.
Cirrus officials expect Generation 5 introduced in January will cause a rebound in retail sales.
“The
reason we are enthusiastic for 2013, we are bringing something new to
the market, and the market is reacting very favorably,” Simmons said.
Such
investment in its piston-powered planes, as well as its Vision light
jet under development, he said, will help Cirrus maintain its market
lead.
Source: http://www.prairiebizmag.com
No comments:
Post a Comment