02 Jan 2026, 03:52 [ UTC - 5; DST ]
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Post subject: Re: Cirrus SF50 Posted: 23 Sep 2017, 22:44 |
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Joined: 12/03/14 Posts: 20981 Post Likes: +26460 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: According to you, they're all losing money. Your ability to state my views is so lame you should stop trying. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Cirrus SF50 Posted: 23 Sep 2017, 22:58 |
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Joined: 01/29/08 Posts: 26338 Post Likes: +13087 Location: Walterboro, SC. KRBW
Aircraft: PC12NG
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Username Protected wrote: According to you, they're all losing money. Your ability to state my views is so lame you should stop trying. Mike C. You said the low volume and lack of automation makes them unable to produce enough units to make money. No economy of scale.
If that's how every manufacturer builds airplanes then how do any make money?
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Post subject: Re: Cirrus SF50 Posted: 23 Sep 2017, 23:06 |
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Joined: 12/03/14 Posts: 20981 Post Likes: +26460 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: He wasn't given a chance to do it. The rug was pulled from under him just as he was starting to scale up the production, before efficiencies of scale could be achieved. That's nonsense, ignoring history to maintain your views. Eclipse built 270 examples, delivering 161 airplanes in 2008. That's perhaps the highest production rate ever achieved for a light jet in the history of aviation. If Eclipse can't make a profit at that rate, it was NEVER going to make a profit. From the bankruptcy filing for Eclipse, the PARTS they were buying were more than they were charging the customers. They would have lost money if the assembly was FREE. They owed creditors over $1B having made 270 airplanes, ~$4M per airplane, and Eclipse paid for SOME of those parts before they stopped paying. They then sold these airplanes mostly around $1.4M a copy. Yeah, we can make that up in volume... NOT. Making them faster only makes you lose money faster. Production is what put Eclipse in bankruptcy. Quote: That calculation changes once you stop thinking about a small just as an owner-flown airplane and start thinking about it as an efficient and cost-effective transportation system for the masses. Dayjet. Bankrupt. Any charter or air taxi operation will find it more economical to operate a larger airplane. The cost difference for the airplane is minimal given all the other overheads in charter operations, and the larger airplane opens more markets and trips you can perform. Hence, charter guys fly CJ2, CJ3, Phenom 300, at the small end of the market. When a customer is paying $2.5K/hour for a jet, saving $200/hour to fly a tiny Eclipse makes no sense. That will be the same for the SF50. Mike C.
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Last edited on 23 Sep 2017, 23:21, edited 2 times in total.
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Post subject: Re: Cirrus SF50 Posted: 23 Sep 2017, 23:12 |
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Joined: 12/03/14 Posts: 20981 Post Likes: +26460 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: If that's how every manufacturer builds airplanes then how do any make money? They charge enough to cover production costs. Duh. All the examples you listed are priced to do that. Go look up their prices. This is unlike the SF50 at $1.4M. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Cirrus SF50 Posted: 23 Sep 2017, 23:44 |
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Joined: 12/10/07 Posts: 8235 Post Likes: +7969 Location: New York, NY
Aircraft: Debonair C33A
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Username Protected wrote: That's nonsense, ignoring history to maintain your views.
Eclipse built 270 examples, delivering 161 airplanes in 2008. That's perhaps the highest production rate ever achieved for a light jet in the history of aviation.
If Eclipse can't make a profit at that rate, it was NEVER going to make a profit.
From the bankruptcy filing for Eclipse, the PARTS they were buying were more than they were charging the customers. They would have lost money if the assembly was FREE.
They owed creditors over $1B having made 270 airplanes, ~$4M per airplane, and Eclipse paid for SOME of those parts before they stopped paying.
Making them faster only makes you lose money faster. Production is what put Eclipse in bankruptcy.
Eh, Mike, try thinking outside the box  We are talking about redefining the whole paradigm of transportation here. 160 airplanes in a year? That's pittance. Try 16,000. How much do you think it would cost to make one at that rate? I'd say about $300K. Now the airplanes are cheap enough to compete with the airlines, and we are going to need many thousands of them. Dayjet was a great concept that was ahead of it's time. It could have been very successful but went under due to the same reasons (underfunding and economic crisis) as Eclipse. I am pretty sure once the memory of that fades away, there is going to be a reincarnation in the future. As a matter of fact, once Uber is done building its network of those autonomous electric VTOL drones zooming around the cities, they will likely start looking into longer range on-demand transportation, and will run into physical limitations of those batteries. At that point very small jets (probably even smaller than SF50 and Eclipse) will become quite attractive. Imagine Apple or Google investing $15B to build 50,000 of those. That's the economy of scale we are talking about. 
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Post subject: Re: Cirrus SF50 Posted: 23 Sep 2017, 23:55 |
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Joined: 12/03/14 Posts: 20981 Post Likes: +26460 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: We are talking about redefining the whole paradigm of transportation here. That ain't the SF50. Maybe you need to start another thread to discuss your fantasy. Quote: 160 airplanes in a year? That's pittance. Try 16,000. How much do you think it would cost to make one at that rate? I'd say about $300K. There would be 15,000 of them sitting in the Arizona desert and the company that built them would be bankrupt. Note that a $300K jet would still cost about the same to operate, so just making the jet cheaper doesn't really change the overall economics that much. As well all know, there's a lot more to the cost of flying than just buying the machine. Mike C.
_________________ Email mikec (at) ciholas.com
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Post subject: Re: Cirrus SF50 Posted: 24 Sep 2017, 00:40 |
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Joined: 12/10/07 Posts: 8235 Post Likes: +7969 Location: New York, NY
Aircraft: Debonair C33A
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Username Protected wrote: That ain't the SF50. Maybe you need to start another thread to discuss your fantasy.
As you may recall, this particular part of the conversation is not about SF50 but about whether Vern's concept of reducing the cost by mass-producing the airplanes is sound. No need to start another thread, we love our thread creep around here  . Quote: There would be 15,000 of them sitting in the Arizona desert and the company that built them would be bankrupt.
Surely not. The company would be something like Apple or Google, for whom $15B is play money. Quote: Note that a $300K jet would still cost about the same to operate, so just making the jet cheaper doesn't really change the overall economics that much. As well all know, there's a lot more to the cost of flying than just buying the machine.
Not exactly. You get better prices for fuel when operating 10,000 airplanes, and everything else would be way cheaper. Parts would be 1/10th of the price, service and maintenance way more efficient at mass scale, and maybe no pilots if we look far enough in the future.
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Post subject: Re: Cirrus SF50 Posted: 24 Sep 2017, 01:14 |
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Joined: 11/22/12 Posts: 2948 Post Likes: +2920 Company: Retired Location: Lynnwood, WA (KPAE)
Aircraft: Lancair Evolution
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Username Protected wrote: Jets will never be made in volumes where production efficiency can make a meaningful difference in production cost. Boeing knows better. The 737 line is hardly "modern", it's been running since the 1960s and was designed around 707 tooling but it builds a 737 in just 9 days. Monthly output has gone from 17 to 47 per month now, 52 next year and 57 per month in 2019, without a commensurate increase in either labor or floor space, due to automation like this: https://www.youtube.com/watch?v=t7ix0t4ivE0 Quote: There just isn't a meaningful change in production costs between building 50 and 500 per year. There is when automation lets you do it without 10x the manpower or floor space, as Boeing demonstrates.
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Post subject: Re: Cirrus SF50 Posted: 24 Sep 2017, 07:40 |
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Joined: 01/29/08 Posts: 26338 Post Likes: +13087 Location: Walterboro, SC. KRBW
Aircraft: PC12NG
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Username Protected wrote: If that's how every manufacturer builds airplanes then how do any make money? They charge enough to cover production costs. Duh. All the examples you listed are priced to do that. Go look up their prices. This is unlike the SF50 at $1.4M. Mike C. I thought we already established the few units Cirrus has sold at $1.4MM does add up to a hill of beans in the grand scheme of things? There's plenty of room to raise the price.
You keep ignoring 2 things.....
1. Cirrus only sold a few units at $1.4MM 2. The economic crash of 2008
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Post subject: Re: Cirrus SF50 Posted: 24 Sep 2017, 09:06 |
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Joined: 03/01/14 Posts: 2301 Post Likes: +2087 Location: 0TX0 Granbury TX
Aircraft: T-210M Aeronca 7AC
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Welcome back Mike! I've love this thread from an objective perspective. I love aviation and production. You can buy an RV-x cheaper than you can build one but there are folks who will spend for what they want (it's hard to justify bass boats tow vehicles and tackle). Aviation is difficult for the middle class. So, from my perspective as lower middle class, and my aviation perspective and presuppositions come from a transition. From working up the rating game; Champ to T-210, to Lear, to Gulfstream. I see the SF50 as the bass boat for the lower upper class.
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Post subject: Re: Cirrus SF50 Posted: 24 Sep 2017, 11:25 |
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Joined: 12/03/14 Posts: 20981 Post Likes: +26460 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: 1. Cirrus only sold a few units at $1.4MM We know that position 341 is a $1.39M plane. Thus MOST of the order book is the low price contracts and it perhaps extends well into the 400s. On the (often missed) production schedule, they aren't past that position until well into 2021, more likely 2022. I am specifically not ignoring the facts about what price they sold positions. Mike C.
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Post subject: Re: Cirrus SF50 Posted: 24 Sep 2017, 11:37 |
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Joined: 12/03/14 Posts: 20981 Post Likes: +26460 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: You get better prices for fuel when operating 10,000 airplanes, and everything else would be way cheaper. Parts would be 1/10th of the price, service and maintenance way more efficient at mass scale, and maybe no pilots if we look far enough in the future. Apparently you take the same pills as some founders of aircraft companies. There's no way to get from today to your imagined future. The infrastructure, available pilots, regulations, price/volume curve, airport capacity, air traffic control, etc, all conspire to prevent being over the hump. You are essentially preaching the religion of Eclipse. Build it cheap and darken the skies with thousands. Didn't work out, never will. Mike C.
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Post subject: Re: Cirrus SF50 Posted: 24 Sep 2017, 11:53 |
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Joined: 12/03/14 Posts: 20981 Post Likes: +26460 Company: Ciholas, Inc Location: KEHR
Aircraft: C560V
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Username Protected wrote: There is when automation lets you do it without 10x the manpower or floor space, as Boeing demonstrates. And the cost of a 737 went down how much? They now go for about ~$110M. The first 737 was sold for just over $3M. The automation was about capacity improvement not cost reduction. BTW, lots of humans in that video staging the materials, checking the work, running the wires, etc. The "automation" is a CNC riveter. Similar devices have been in use for a while, even at Cessna, the Boeing one is noteworthy for the scale. The automation is not having a profound impact on the price. The automation is not free. Mike C.
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