Airplane prices are ridiculous, Pt.2

Within any given economy you will find
these two: 1) Price takers and 2) Price
makers.

Price takers are the sellers who must charge
within a specific range due to supply and
demand. Their prices will be set to be
compatible with the other sellers or else the
buyers will simply go to a competetor. The
prices are market driven.

On the other hand we have price makers.
These sellers operate within an environment
of limited supply or accessablility with very
high demand or necessity, such as...
electricity and water. Their prices may be
set by constraints for the public good. You
may also find price makers in any market
where there is a captive audience. For this
reason monopolies are illegal.

Similar to monopolies, oligarchies are are a
small group in which power rests effectively
within a small segment of society and these
are in effect today throughout many economic
sectors. These groups will conspire to set
prices among certain markets, yet remain
independent entities. Supply and demand is
usurped.

Then you have airplanes. This market seems
to me to fall within the price maker category.
Aviation has fallen into the rich man's
category whereby the manufacturers don't
care to mass produce and as long as there are
enough wealthy clients to satisfy them the prices
will remain high, irrespective of demand for
affordability.

Thus, the popular home-build market, kit
planes will thrive to satisfy the niche of the
market for middle-class enthusiasts, or anyone
who just doesn't want to throw 130K of their
savings into this hobby.

Problem is, a lot of people either can't, or don't
want to spend their time building. For them the
alternative is very slim. You either fly an antique,
an ugly sky slug, or you sit and watch.

One can only hope the LSA market as well as
all single engine manufacturers will one day
open their doors to affordability for the general public
and maybe then General Aviation will begin to
see a turn around.

---
Mark