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Continental back in the US

Brian

Brian

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Sep 30, 2019
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Queensbury, NY
I wonder what else this deal will bring. Will they try to improve sales? Maybe they'll be new engine designs. Maybe they will lower prices. I wonder what their financial situation is like after this deal. Will they be able to pay their bills? Will they be able to keep up with orders? Well they try to branch out into other areas besides Aviation? Will the current quality be maintained? Improved? Or will it decline? From what I've heard The IO-370 in our 172 never would have come to fruition if the Chinese had not insisted on it. So many questions...
 
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One would expect some sort of self-limiting point beyond which increasing costs will reduce sales and profit -- especially if these firms are actually investing substantial funds in the businesses.

I don't know where that self-limiting point would or will be, but it most likely needs to be below the point where GA pilots simply stop buying parts.
 
Aeromot said:
I wonder what else this deal will bring. Will they try to improve sales? Maybe they'll be new engine designs. Maybe they will lower prices. I wonder what their financial situation is like after this deal. Will they be able to pay their bills? Will they be able to keep up with orders? Well they try to branch out into other areas besides Aviation? Will the current quality be maintained? Improved? Or will it decline? From what I've heard The IO-370 in our 172 never would have come to fruition if the Chinese had an insisted on it. So many questions...
Click to expand...
Will the price of a Cessna 150's O-200-A drop from its current price of about $50k?

Roy
 
Brian said:
One would expect some sort of self-limiting point beyond which increasing costs will reduce sales and profit -- especially if these firms are actually investing substantial funds in the businesses.

I don't know where that self-limiting point would or will be, but it most likely needs to be below the point where GA pilots simply stop buying parts.
Click to expand...
Kind of the topic of this article:

avbrief.com

Aircraft Parts: Private Equity Spikes Costs, Sustainability in Question - AvBrief.com

Alaska pilot Maj. Ryan "Lit" Gourley crunched the numbers on aircraft parts supplier consolidations and sees an existential threat to GA.
avbrief.com avbrief.com
 
I wonder if another effect might be the same changes in emphasis and culture and corresponding reductions in quality and safety that Boeing has experienced, for much the same reasons.

Roy
 
Average total inflation over the same period is 34%.
 
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