On Sep 10, 12:12*pm, wrote:
So why, relatively speaking, were planes so much cheaper
back in the 1970's? *I don't think it was supply and demand
but I could be wrong.
They weren't.
A decent, used, lower end airplane both then and now costs about the same
as a high end car.
Oh, sure, in absolute dollars they were a lot cheaper then, but so was
everything else.
My understanding is that the RATIO has not been maintained,
as I've already stated and RELATIVELY speaking planes cost
more today than in the 1970's.
Of course, airplanes are never going to be mass produced in millions per
year by robots.
Maybe not but with globalization of the world economy I
wouldn't be suprised to see China step up to the plate and
fill this niche.
What niche?
The sector of people who don't want to pay more than
50K.
The equipment to do robotic building costs big bucks that can only be
payed for by huge volumes.
Yes I am familiar with this, as I worked for Lockheed during
the 70's and 80's.
Even if the price for a new Cessna/Cirrus/Piper were the same as a new car,
the percentage of people owning airplanes would not change very much simply
because most people are not interested in owning an airplane.
I'm sure that there are MANY people who would own an
airplane today if they could get one for $24,900.
The bottom line is there is no huge market for airplanes at any price which
means the building of them will never be automatted like cars are.
While I wouldn't expect a company to try and crank out planes
as if they were toyotas, I think the cheap international labor
market could make available a reasonably priced new craft
for the geneneral aviation market.
* From a stand-point of profitablility I'm sure
Cessna, Piper, and Beechcraft among others have found a
nice balance of optimum profit by producing just enough
inventory to keep the prices where they want them without
having to tool up and mass produce. Labor would be their
largest overhead and human resource management is
always volatile.
Utter nonsense.
Wrong. Generally speaking your highest on-going overhead
is labor. With any successful business, at some time the
idea of expansion is entertained, and while your actual sales
very well may increase (the reason for examining expansion)
very likely your profits may decrease.
All the airplane makers have been struggling just to survive for a
decade
or so now.
Agreed, with many going bankrupt but it isn't due
to lack of demand. (you know...supply/demand)
Back to the Chinese... *this short video gives a nice little
tutorial on the state of electric airplanes and China's
contribution. Just think, no oxygen required.
Electric airplanes are toys.
Precisely what was said about the telephone..."Just a toy".
http://www.youtube.com/watch?v=TwyyQ1BckK0
In term of cost, the best time to buy stuff is when the economy is
down
and people are dealing.
No doubt and people are selling everything these days,
especially in Florida where houses are 1/2 (or less)
their former price. Most anywhere you can find a boat,
travel trailor, or motorcycle for bargain prices and people
are selling 120K airplanes for 80K. Problem is, after a
year or so most of those toys just end up sitting in the
garage and the 80K plane is STILL overpriced.
What are you, 15?
No need for insults. I'm 55, became financially
independent at age 40, and I didn't do it by throwing
away money on impulse spending.
Thanks, Mark
--
Jim Pennino
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