Skycatcher Increases Orders; LSA Industry Adjusts

Gemini Sparkle

Key Takeaways:

  • Cessna received 920 Skycatcher orders within 10 weeks, indicating strong initial market interest in their LSA.
  • This surge in Skycatcher orders coincided with an unexpected decline in the steady growth of overall SLSA registrations through September 2007.
  • The article speculates that these refundable Cessna orders may be causing a temporary slump in broader SLSA purchases as buyers await the Skycatcher.
  • Cessna's projected annual production of 700 Skycatchers is substantial, potentially accounting for 30% of the entire LSA market at full capacity.
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Czech LAA official, Jan Fridrich (who compiles SLSA registration data used on ByDanJohnson.com), suggests Cessna’s Skycatcher orders may have caused a decrease in an otherwise steady rate of registrations. Look for an upcoming SPLOG with more details.

Cessna reported 920 orders for Skycatcher in the 10 weeks between EAA’s AirVenture and AOPA’s Expo. Curiously, FAA data for SLSA registered through September 2007 showed a slip in the pattern of steady monthly growth. Does it sound logical that Cessna’s $4.6 million of orders — the retail price value of 40 or 45 SLSA — account for this slump? Although refundable, those orders should eventually translate to more than $100 million worth of Skycatcher sales. Cessna said it expects to produce 700 a year at full production. *** Let’s compare that with the balance-of-the-industry performance. Three quarters of the way through 2007, the entire LSA industry has registered 609 airplanes. On an annualized basis this yields 812 units. So, if industry players other than Cessna can double sales in two years (a reasonably conservative estimate), Cessna would represent 30% of the total when they reach full production. Cirrus and their SRS must also be factored in and other entries could bring more changes. FAA registration does not precisely match airplane production or deliveries.

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