Having been in the aviation business off and on all my life it seems unfortunate the extreme costs associated with general aviation aircraft and yet there is a pretty good reason why of course. One of the biggest costs, which has nothing to do with the components is the aircraft manufacturers insurance costs for products liability and the costs associated with its legal department to defend against lawsuits. I estimate this at about $75,000 per unit built and would say that is a significant and unfortunate cost indeed. This comment in my article would be the included the cost of insurance divided out per unit, excesses from lawsuits minus what the insurance company might pay and on-staff attorneys and retained counsel. Many say that those numbers are down due to changes in class-action litigation and other laws limiting liability. Also realize that who ever buys Beechcraft Brand from Raytheon needs to factor this in. Some aircraft manufacturers have spun off divisions due to these reasons. It also does not play well into the newest under 1 million dollar new Biz Jet market, which is a problem and concern of NM and other states trying to coax in new industry and jobs into their states and Wichita KS who wants to keep theirs. It does however help China and India both eyeing the GA manufacturing markets. Consider all this in 2006. |
