Mooney has reduced the prices of its range of light aircraft by around 20% in a move by its new owners to stimulate demand. The price cut is "permanent", says chief executive Roy Norris, and is the result of a 40% cut in production and marketing costs since Mooney was rescued from bankruptcy in March.
Talks to acquire the rights to Century Aerospace's CA-100 light business-jet design are nearing completion, Norris says, but talks with Raytheon Aircraft on buying the Bonanza and Baron piston line have not progressed beyond an initial meeting. "I'm not sure why. We came up with a quite substantial price that was more than fair," Norris says. Raytheon has told employees there has been no progress since the initial talks earlier this year.
The first Mooney piston aircraft completed since the company emerged from bankruptcy flew last week, and is to be delivered at the Oshkosh air show in July. The company plans to build 100 aircraft next year and 200 in 2004, if the price cut succeeds in stimulating demand. Norris says Mooney has cut its production costs by 20%, reduced its overheads by 2% and trimmed another 18% by shifting from distributors to factory-direct sales. Half the savings are being passed on to customers, with price cuts averaging $90,000 on the Bravo, Eagle2 and Ovation2.
The cuts have been achieved without reducing aircraft specification, says Norris. At just under $300,000, the entry-level Eagle2 will now compete on price with the Cirrus SR22, but offer higher performance, he says. To replace distributors, Mooney is planning "Lexus-style" showrooms at its Kerrville, Texas, factory, the former Advanced Aerodynamics & Structures plant in Long Beach, California, and a site in Florida.
Source: Flight International
