Company Sees Signs Of Recovery In Owner-Flown And Business Markets

On November 4, GAMA released the industry’s third quarter shipment and billings summary. While fluctuations continue in the general aviation new aircraft market, Cirrus Aircraft maintained its strong share position with SR20, SR22 and TURBO. Through the first nine months of 2009, piston-powered GA airplane shipments stood at 679 units while total GA shipments were 1,587. Both figures represent significant declines from the same period last year.  

“In the third quarter, we continued to see the periodic variability in new aircraft sales that has been with us for the last 12 to 15 months. Obviously, the overall market remains quite contracted compared to several previous years” said Todd Simmons, Vice President of Marketing at Cirrus. “There were some notable bright spots in the figures for Cirrus.”   

During the third quarter of 2009:

• Cirrus shipped 68 aircraft. Cirrus has shipped 189 total aircraft year-to-date. 
• For all Single Engine Piston Aircraft - Tricycle Gear, Cirrus Aircraft has 32 percent market share, representing a share increase in every quarter of 2009. In this category, this is Cirrus Aircraft’s highest market share position to date. 
• Cirrus Aircraft shipments are 3.5 percentage points ahead of the overall piston aircraft delivery rate versus the same period a year ago. 
• Cirrus Aircraft maintained its market share leadership of nearly 60 percent for all SR22 comparable aircraft. 
• The Cirrus Aircraft SR22 (normally aspirated and TURBO) remains the best-selling model of SEP airplane for the seventh year in a row.

While not reported in GAMA data, sales of pre-owned Cirrus Aircraft through "Cirrus Certified" Cirrus aircraft pre-owned sales division continue at a brisk pace. Cirrus Certified increased sales 51 percent versus the same three-quarter period in 2008. A total of 118 pre-owned Cirrus transactions had been conducted through the end of the third quarter, representing 40 more aircraft sales than through the same period than in 2008. 

In publishing the third quarter delivery data, GAMA Chairman Pete Bunce noted the importance of GA to successful businesses. “A recently released study shows the powerful connection between well-run companies and those that use business aviation. For example, Business Week magazine’s 2009 25 Best Customer Service Companies and the Corporate Responsibility Officer’s list of 2009 100 Best Corporate Citizens, both show that 90 percent of the identified S&P 500 companies are business aircraft users. Pete Agur, Jr. author of The Compelling Case for Business Aviation in the October 2009 issue of Business and Commercial Aviation noted the significance of high performance singles to small businesses in a companion study: The Economic Case for High Performance Single-Engine Piston Business Aircraft. Agur concludes, “The results of the analysis are dramatically clear. The economic benefit of using a high performance single-engine piston airplane for regional travel is compelling”.

Approaching year-end, Cirrus sees early signs of recovery in both the traditional owner-flown market as well as in segments where previously Cirrus has been a quieter player - the regional and small businesses segments noted above. “Our product enhancements for new aircraft, robust activity in our pre-owned business, and price discipline in both new and used markets are making a real difference," Simmons said. "The latest GAMA numbers show it. Generous depreciation rules for 2009 domestically, the expiration of the VAT exemption in Europe at year-end and a recovering overall economy have the fourth quarter shaping up as the strongest quarter of 2009 for both orders and deliveries at Cirrus.”    

 FMI: www.cirrusaircraft.com