So their overall costs are going to be a few percent below, say, the
Cessna Citation Mustang.
Competitively speaking, Cessna is in pretty good shape. They're very
good at reducing the amount of labor in building an airplane. They
have a large product line, experienced workers and plenty of capitol.
They have long experience getting airplanes certified, that shouldn't
be a problem. So if their cost on the Mustang is slightly higher,
they're in good shape to price it with or below the Eclipse to
preserve market share. If it's a price war between Cessna and
Eclipse, which company can hold out longer? And if you were a
corporate aviation buyer deciding between the two - and they were
priced the same - would you buy a plane from a company that had no
track record, or one that was very, very well established?
Eclipse is dead, they just won't admit it yet.
Yes that's why even with the new engines there price is still about 1/3 the
price of the cessna, and they have over 2000 firm orders! Don't count them
out yet. Oh yeah their plane IS flying!
John
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