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Old October 2nd 05, 09:02 PM
TaxSrv
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"Matt Whiting" wrote:
...
My guess is that making light planes is a losing
proposition for Cessna. From a purely business standpoint,
they would probably me money ahead if they had never
re-entered the light plane market. This is sad, but I'm
guessing true.


It is possible they make money too, as the light singles can share
some of the infrastructure in place to make and market the
profitable lines. However, Cessna is a small part of a big company
(Textron), and their financial statements by segment suggest only
that building Citations is certainly worthwhile even in bad years.
At the unit volume of piston singles, they may make some, or lose
some, and it's possible the Board of Directors cares little one way
or the other if Cessna managers have a rationale for their biz
model. As an inconsequential part of a big picture, I think it
erroneous to compare Cessna decision-making on the singles to that
of competitors who I think are all standalone companies and
nonpublic.

Fred F.