Richard Riley wrote:

On Sun, 02 Jan 2005 01:33:54 GMT, UltraJohn
wrote:

:
: 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
rice of the cessna, and they have over 2000 firm orders! Don't count them
ut yet. Oh yeah their plane IS flying!
:John

Yes, their list is $1.175m. Do you believe that they are making any
money at that price? I mean, it just about covers the cost of the
engines and avionics.

The orders are cancelable if they can't meet their price. They wont.
Or Cessna will dramatically lower theirs. Cessna got about 350 orders
in the first week after announcing.

And you can bet your bottom dollar that Cessna will make money on the
Mustang.


Matt