Dealer Network vs. Factory Direct Sales

[dstclair]

The Cessna Skycatcher was ended due to a change in direction of the executive leadership team. Jack Pelton was a firm believer in the vertical market that started with training pilots in their product. The Skycatcher was targeted at this market and built up a very substantial order list. Once Pelton was forced out, the direction of the Skycatcher was uncertain until it culminated with the new CEO stating the Skycatcher had no future. I view this as more of P/L decision than a comment on the plane itself. I'd venture a guess that the profit on one bizjet exceeded the entire profitability of Skycatcher line. Direct ROI may not have ever made sense. The market for LSA is really small when compared Textron's other business units so even if Cessna owned the ENTIRE market, it may not have had the profitability Textron was looking for. Perhaps, the low-end GA market is best served by smaller companies where the opportunity is large for them.

[Jack Tyler]

Dave's quite right about the fateful final days of the Skycatcher. The new CEO was from GE - as were several senior managers he brought in after him - and they are all about bottom line numbers. But the initial problems were very different. They had lost some of their light a/c design talent after the drop off in piston a/c sales, couldn't justify replenishing it, and so produced several iterations of a poor design that led to delays. Remember the crashes? Next, the costing rate for an hour's labor at Cessna was not competitive so they decided to manufacture offshore, a decision for which they had very limited experience, with only final assembly in the U.S. That added unanticipated cost and significant delivery delays. Add in the fact that the European competition had its roots in glider design and construction, where weight is the enemy, and Cessna simply wasn't well equipped, by culture and skill sets, to be successful.

[Cluemeister]

So you're saying other than labor costs, design, a totally new boss at the helm, and intense competition, they were this close!

[HAPPYDAN]

Our (user to be) local Cessna dealer agrees that it was economics that killed the project. Production costs were higher than anticipated, and keeping it priced competitively rendered the plane unprofitable. In my personal opinion, it is a solid trainer and fun recreational plane, that's easy to control, with a nice power to weight ratio (has come in handy once or twice!). BUT - 2 adults with weekend baggage and full fuel tanks can put it seriously overweight.

[Cluemeister]

I agree Happy. Flocker was kind enough to take me up in his rental Skycatcher this weekend. Great little plane!

[SportPilot]

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