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#11
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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. |
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