The following is a transcript of the presented video for your convenience:

“We’re about mid-way in the 2010 U.S. Sport Aviation Expo, and we’re starting to see a process of maturation, both positive and negative that this industry was heading for and frankly desperately needs.  Let’s talk a little bit about the realities of the LSA industry right now, especially coming out of the economy we had in 2009. 

There’s a hundred and some-odd designs available right now, some built in significant volume and some built one or two at a time and may have three or four a year maximum to show for themselves.  We can’t support it; we never could.  We’re not likely to now in particular, and as time goes on, it’s only going to get tougher.  The thing we are finding out right now is that ultimately, these companies are going to distinguish themselves very carefully.

Let me give you a case and point.  Walking around yesterday, at several of the booths, the salespeople were talking to each other, not talking to customers.  Customers with brochures in hands were standing off to the side.  They don’t know how to approach; they’re not getting the information that they need.  The airplanes are out there and that’s great, but there’s nobody out there talking about the merits of the business.  There’s nobody out there answering the questions about how to fly, how to buy, how to license, how to maintain, and how to support what they have to offer.  In most cases, you don’t see that.  You do in a few places, and I hate to say it but you see it at Cessna.  You see it at Piper.  You see it at Van’s.  You see it at RANS.  You see it at Flight Design.  They are companies with time in the business, companies that understand service and support, and companies that are here long after they started simply because the only way to survive was to support the customer, market to the customer, and be professionals.  And this is where we are running into some problems.

Yet another case and point, fellow finally gets the attention of two salespeople in a quasi-popular LSAs’ display area, shows up, nudges the elbow, finally gets their attention, and the first question out of the salesmen’s mouth is, “Do you have $160,000 to buy this airplane?”  In other words, if he didn’t, he’s wasting his time and so forth and so on.  Not what we are looking to do.  There is a coming breakdown where we’re going to see the maturation of this industry devolve this 100-product industry down to the dozen, or fifteen, or maybe even twenty that can survive in certain segments.  It’s coming fast, and this is probably the year we’re going to see the windowing process start in earnest. 

The associations are starting to pay a bit more attention where they need to; we’re seeing more attention from AOPA, which in the past, didn’t know what to do with LSA and is finally deciding to do something.  EAA’s process where, they’re realizing now, that rather than just taking credit for something that originally they were trying to kill now has to be supported, and they’ve got some awfully good people working in that.  I think that they’ve got a mandate to do their job.  And then finally, like anything else, it’s a matter now as the economy tries to recover and stumbles along, people are finding out that there’s an exceptional value here. 

The one over-shadowed problem of all things is simply this:  it’s always been expensive to be in aviation.  LSAs are no different.  $100,000, or $120,000, or $160,000 for an LSA is a tough price to pay.  Of course, you can’t get the prices down until you get the volume, and you can’t get the volume until you get the prices down.  It is going to be an interesting thing to watch this industry try to mature, try to build itself into a more professional, more polished industry. 

We’re seeing the first signs of the people that are attempting, but you watch:  future U.S. Sport Aviation Expos will be more about supporting the customer and less about giving them way too many choices because ultimately, those many choices are just simply not going to survive.  And the professionals, the folks that are willing to market, willing to support, willing to hold hands, willing to show them what they can do after they make the sale to keep them happy, to keep them in the air, and to keep them safe, those are going to be the survivors at the 2011 U.S. Sport Expo and beyond. 

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