LSA Market Shares Archives - Page 7 of 8

Avemco Investigates LSA; Continues Insurance

By Dan Johnson || June 1, 2008 Leave a Comment

Avemco advises LSA producers could help contain insurance premiums by... solving any design issues; doing better transition training of pilots not used to light wing loading; getting more shops ready to do repairs and assuring replacement parts are available; and, working with aviation experts to properly value used aircraft and those in salvage operations. Similar tasks are required for all new aviation market segments.

Does FAA control aviation? They regulate it (sometimes well). True control may be in the hands of insurance companies. Just try to operate your airplane, your airport, your aviation business without insurance coverage. Insurance companies help keep airports open and protect our investment in airplanes when we occasionally land a bit hard. *** One company addresses market needs differently. Avemco sells directly to pilots, not through middlemen. This may explain why Avemco is one of the country's largest airplane insurers. *** Their top man, Avemco President Jim Lauerman, has been out doing his homework on LSA. In our conversation at Sebring 2008, Jim told me about all the LSA leaders he spoke to at the event. Following Sebring he went quite a few extra miles and paid in-person visits to AMD, American Legend, and IndUS Aviation. *** Since Lauerman is personally willing to look carefully at LSA, industry players are likely to heed his advice out of respect for his interest and thoroughness. The best news: Avemco fully intends to remain in the LSA insurance market. (See photo caption for Avemco's advice.)

Does FAA control aviation? They regulate it (sometimes well). True control may be in the hands of insurance companies. Just try to operate your airplane, your airport, your aviation business without insurance coverage. Insurance companies help keep airports open and protect our investment in airplanes when we occasionally land a bit hard. *** One company addresses market needs differently. Avemco sells directly to pilots, not through middlemen. This may explain why Avemco is one of the country’s largest airplane insurers. *** Their top man, Avemco President Jim Lauerman, has been out doing his homework on LSA. In our conversation at Sebring 2008, Jim told me about all the LSA leaders he spoke to at the event. Following Sebring he went quite a few extra miles and paid in-person visits to AMD, American Legend, and IndUS Aviation. *** Since Lauerman is personally willing to look carefully at LSA, industry players are likely to heed his advice out of respect for his interest and thoroughness.

Aircraft Sales through April ’08 Reflect Economy

By Dan Johnson || May 14, 2008 Leave a Comment

In the first four months of the year, we've seen a few climbers: Czech Aircraft Works and Remos improved their rank the most: Highest 2008 sales were (in order): Flight Design, CZAW, Remos, Jabiru, Tecnam, and Legend.

I can identify four factors in the economy presently affecting airplane sales: Potential customers (often with plenty of assets or creditworthiness) see the value of their stock portfolio going up and down like a roller coaster; worry over their once-soaring real estate, now down markedly in some areas; witness the continuing rise of the euro-dollar exchange rate, bringing much higher prices for many LSA; and, fret over a climate of political uncertainty during another election cycle. *** Perhaps due to these factors GA single engine piston sales are off 28% compared to the same period last year, according to GAMA. LSA sales are off 30% compared to trends six months to a year ago. *** Jet and turbine aircraft sales are up, but 2008 deliveries of those aircraft stem from orders taken 2-3 years ago. Contrarily, personal and sport aircraft sales react quickly to the slightest perception of economic shakiness. *** Despite that we have some bright spots. Large ad expenditures paid off with a good advance for Remos. The Flight Design machine drives on as it always has and Czech Aircraft Works is experiencing healthy registrations. Jabiru continues to grow steadily and Urban Air's Lambada has made the top 20 for the first time. Hopefully, the last eight months of the year will offset the slow start in '08.

2008 LSA Sales Reflect a Stalling U.S. Economy

By Dan Johnson || March 24, 2008 Leave a Comment

The ranking order changes again even while the top three hold their leadership positions. Note the gain of CubCrafters now brings the sum of little yellow taildraggers (with American Legend and Zlin's Savage) to an impressive 17.3% of all fixed wing registrations.

The U.S. economy is hardly crashing, but while slipping backwards in late 2007 and early 2008, it has been on a bumpy plateau. This unevenness causes trouble for many businesses. Even giant coffee seller, Starbucks, is rejiggering their business model to adjust for folks balking at $4 coffee while their stock portfolio lurches up and down. Light-Sport Aircraft sales also reflect that lack of consumer confidence. *** Figures for the first two months of 2008 show slightly more than 40 aircraft registrations per month. In 2007, the industry averaged 47 aircraft registrations per month. Of course, this 15% decrease also comes while many northern states have endured awful winter flying weather, partially explaining why sales are off the beat. Despite a cloudy overcast some bright spots emerge. *** CZAW's SportCruiser led the pack with more than 17% growth during January and February. AMD is close behind with 14% growth, and CubCrafters continues their climb with 7.5% growth. Newly ranked companies appearing on the list include Gobosh (G-700S) and U.S. producers Just Aircraft (Highlander) and Higher Class Aviation (Sport Hornet). Common in every industry, larger companies have difficulty maintaining high percentage growth as their overall numbers increase.

The U.S. economy is hardly crashing, but while slipping backwards in late 2007 and early 2008, it has been on a bumpy plateau. This unevenness causes trouble for many businesses. Even giant coffee seller, Starbucks, is rejiggering their business model to adjust for folks balking at $4 coffee while their stock portfolio lurches up and down. Light-Sport Aircraft sales also reflect that lack of consumer confidence. *** Figures for the first two months of 2008 show slightly more than 40 aircraft registrations per month. In 2007, the industry averaged 47 aircraft registrations per month. Of course, this 15% decrease also comes while many northern states have endured awful winter flying weather, partially explaining why sales are off the beat. Despite a cloudy overcast some bright spots emerge. *** CZAW‘s SportCruiser led the pack with more than 17% growth during January and February. AMD is close behind with 14% growth, and CubCrafters continues their climb with 7.5% growth.

High Priced Light-Sport Aircraft; What’s Going On?

By Dan Johnson || March 15, 2008 Leave a Comment

Recently the euro hit 1.56 to the dollar. Watch for LSA prices to increase...again. Above the CTLS are three premium brands: (L-R) Sting S3, Remos G-3, and SkyLeader 500. Below are three bargain SLSA: X-Air LS, Sport Hornet, and EuroFox.

Lots of folks are wondering about, or complaining about, the seemingly high prices of Light-Sport Aircraft. Recently a prior editor-in-chief of EAA publications, Scott Spangler, wrote a blog on JetWhine. Scott focused on expensive avionics as one reason LSA cost so much. While a factual observation, I believe the price increase is more complex. *** First, LSA suppliers install equipment like autopilots because buyers ask for them. A large chunk of all LSA are sold to "retiring" GA pilots used to such equipment in their Cessna or Bonanza. Simpler LSA are available; most suppliers have one. But customers are buying the loaded-panel jobs. *** Let's look closer at those rising prices. Five years ago, in the pre-dawn of SP/LSA, a CT was selling for $60,000. Today it's $125,000. By far the largest piece of that doubling is the euro's soaring value compared to the dollar. Were the currencies at parity, that $125,000 would be $80,000. By the way, suppliers earn not one cent of profit from that extra $45,000! The "real" (non currency exchange) increase from $60,000 five years ago -- about $20,000 -- is generated by two factors. Most obvious are the avionics and other accessories. A $125,000 CTLS comes standard with dual glass screens, a sophisticated GPS, radio, transponder, a $5,000 emergency airframe parachute, and more. The second factor is the time value of money -- another 18% or $10,000. So an $80,000 price (if the euro equaled the dollar as it did in 2002) is not much higher than the $60,000 of 2003. *** Despite those price hikes, here in 2008 you can choose the ready-to-fly X-Air LS for $46,000, the Sport Hornet for $49,000, the EuroFox for $69,000, or the SportCruiser for $79,000. Even simpler aircraft may be coming in the $40-45,000 range. Those low numbers barely exceed the component cost of kit aircraft. *** Regardless of the preceding discussion higher prices remain a fact of life. You still have to shell out $125,000 for a CTLS (you can finance this for a bit more than $800 a month) though you get a lot of airplane for the money. If buyers truly want cheaper, simpler aircraft, they ARE available.

Year-End Market Shares; LSA Grows 98% in 2007

By Dan Johnson || January 29, 2008 Leave a Comment

Year-end figures show excellent growth for Light-Sport Aircraft. Thanks to Jan Fridrich of the Czech Light Aircraft Association for several hours of work each month to compile data used to make charts on ByDanJohnson.com. The LSA industry certified 20 new models in 2007.

Light-Sport Aircraft ended a successful year in 2007 with sales up 98%, registering 565 new fixed wing airplanes for the calendar year for a total of 1,118 airplanes. Including weight shift, powered parachutes, and gliders (no gyro or lighter-than-air yet), total registrations for the year hit 720, up 120% over the previous year close and totaling 1,395 LSA nationwide. For comparison, the general aviation industry produced as many single-engine (SE) piston airplanes each quarter as the LSA industry did all year, and GA is expected to ship more than 2,200 SE pistons for 2007. Can LSA match that performance in the next two or three years? My forecast says, "Yes!" I estimated 600 for 2007 (we hit 92% of that target). I've forecast 1,000 units in 2008 and doubling that again in another year or two. If I'm right, LSA may someday meet or exceed all other SE piston sales in the USA. *** GAMA says the GA industry built 85% of SE pistons in the USA, where about two thirds of all LSA come from outside the USA. GA SE piston sales were off about 5% in 2007, perhaps an early effect of LSA taking some of those sales. But the GA industry need hardly be worried given their far higher dollar revenues and a continuing, robust upward trend for turbine and jet sales.

Light-Sport Aircraft ended a successful year in 2007 with sales up 98%, registering 565 new fixed wing airplanes for the calendar year for a total of 1,118 airplanes. Including weight shift, powered parachutes, and gliders (no gyro or lighter-than-air yet), total registrations for the year hit 720, up 120% over the previous year close and totaling 1,395 LSA nationwide. For comparison, the general aviation industry produced as many single-engine (SE) piston airplanes each quarter as the LSA industry did all year, and GA is expected to ship more than 2,200 SE pistons for 2007. Can LSA match that performance in the next two or three years? My forecast says, “Yes!” I estimated 600 for 2007 (we hit 92% of that target). I’ve forecast 1,000 units in 2008 and doubling that again in another year or two. If I’m right, LSA may someday meet or exceed all other SE piston sales in the USA.

Last Look Before Year End; CubCrafters Rising

By Dan Johnson || December 13, 2007 Leave a Comment

Chart shows registrations through eleven months of 2007. One star of 2007 is CubCrafters and their Sport Cub (photo), which more than tripled its registrations. Other 2007 rising stars: SportCruiser, EuroFox, & G-3.

With one month to go before we evaluate all of 2007, here's an early picture. In eleven months, industry added 499 fixed wing airplanes plus a healthy fleet of trikes and powered parachutes. I expect SLSA registrations to reach 544 airplanes for the year, nearly a doubling of the 565 we had last January after sales were tallied since beginning in April 2005. In its first 20 months, industry registered 29 airplanes a month on average. In 2007, that number will rise past 45 a month (up 56%). The entire airframe producer community should generate almost $60 million in sales. *** The top three remain unchanged as CTSW, SportStar, and Legend Cub held their lead even while 17 new models entered the marketplace. One of the most notable rising stars of 2007 has been CubCrafters. The Sport Cub maker started well down the January chart with only 15 registered airplanes. They've more than tripled their base of owners rising from 9th place to 4th. With Legend and Zlin, yellow taildraggers account for almost one in five SLSA. Another brand to watch is Jabiru which more than doubled its fleet from January through November (although that feat was nearly matched by leaders Flight Design and Evektor).

With one month to go before we evaluate all of 2007, here’s an early picture. In eleven months, industry added 499 fixed wing airplanes plus a healthy fleet of trikes and powered parachutes. I expect SLSA registrations to reach 544 airplanes for the year, nearly a doubling of the 565 we had last January after sales were tallied since beginning in April 2005. In its first 20 months, industry registered 29 airplanes a month on average. In 2007, that number will rise past 45 a month (up 56%). The entire airframe producer community should generate almost $60 million in sales. *** The top three remain unchanged as CTSW, SportStar, and Legend Cub held their lead even while 17 new models entered the marketplace. One of the most notable rising stars of 2007 has been CubCrafters. The Sport Cub maker started well down the January chart with only 15 registered airplanes.

September Market Share Update: 1,192 Registered

By Dan Johnson || September 16, 2007 Leave a Comment

As always, thanks to the Czech Light Aircraft Association's Jan Fridrich for the compilation of FAA data, a time consuming task he does faithfully each month. FAA registration data does not precisely equal customer deliveries.

FAA registration data through August show continued growth with another 58 SLSA listed for a total increase in 2007 of 557 aircraft (88%) in just eight months. The lone share change in the Top Twelve was CubCrafters rising another notch to 6th, pushing Fantasy Air down to 7th. CubCrafters has been rising steadily after their late entry, though they still significantly trail rival American Legend. *** Despite being a trike enthusiast, I'm amazed to observe the 15% share of all Special Light-Sport Aircraft that are weight shift control aircraft. France's Air Creation and Australia's AirBorne dominate the category with a registered 105 and 61 models respectively. Six trike models share the market. *** Powered parachutes have also done respectfully well in a few months with 5% of all SLSA registrations. Infinity (27 aircraft) and Powrachute (24) overshadow Summit (7). Both weight shift and powered parachutes benefit from lower purchase prices but also from a loyal base of pilots who enjoy these unorthodox flying machines. Having flown both, I suggest you keep an open mind until you sample them.

FAA registration data through August show continued growth with another 58 SLSA listed for a total increase in 2007 of 557 aircraft (88%) in just eight months. The lone share change in the Top Twelve was CubCrafters rising another notch to 6th, pushing Fantasy Air down to 7th. CubCrafters has been rising steadily after their late entry, though they still significantly trail rival American Legend. *** Despite being a trike enthusiast, I’m amazed to observe the 15% share of all Special Light-Sport Aircraft that are weight shift control aircraft. France’s Air Creation and Australia’s AirBorne dominate the category with a registered 105 and 61 models respectively. Six trike models share the market. *** Powered parachutes have also done respectfully well in a few months with 5% of all SLSA registrations. Infinity (27 aircraft) and Powrachute (24) overshadow Summit (7).

LSA Market Shares Stabilize But Change On Horizon

By Dan Johnson || August 9, 2007 Leave a Comment

If you want more information on the leaders or any certified Special Light Sport Aircraft visit our SLSA List. Source: FAA registrations elaborated by Jan Fridrich of the Czech Light Aircraft Association. Czech aircraft comprise 31% of all LSA, the largest single country (USA has 25%).

In the month of July 2007 the LSA industry registered 71 more aircraft bringing the total to 904 fixed wing airplanes. That represents a spurt of 11% in one month and an even 60% growth in registered LSA since January 1st 2007. *** In all categories, Americans are flying 1,134 SLSA. Weight Shift aircraft registered an additional 27 aircraft, powered parachutes added 6 and LSA gliders achieved their first registration. *** The leading companies (see chart) were barely changed with the top five holding nearly identical market share from last month. CubCrafters inched up a notch and Czech Aircraft Works narrowly passed Remos. Further down the market share list, positions still saw little fluctuation. This equilibrium will surely be disturbed with the entry of Cirrus (by August 2008, they say) and Cessna* (in the second half of 2009) but for 27 months, customers have generally kept their brand loyalties. *Cessna reported more than 550 sales in the week of AirVenture Oshkosh. Cirrus' SRS prototype drew large crowds at their display. Many aviation leaders finally declared, "LSA is here to stay." UPDATE: AvWeb reported today that Cessna now has 720 orders for Skycatcher.

LSA Registrations Pass the 1,000 Mark!

By Dan Johnson || July 3, 2007 Leave a Comment

The number of Light-Sport Aircraft continue to grow, but the real upward trend may yet be ahead of us. Cessna and another major aircraft producer are expected to enter the market this year. Thanks to Jan Fridrich of the Czech LAA for help with the data collection.

After 26 months and a few days, LSA now exceed 1,000 aircraft in the U.S. certified aircraft fleet. That sum represents an annual sales rate of nearly 500 aircraft per year. Since June 1st, another 49 fixed wing aircraft have been added, an annual rate of almost 600 aircraft. *** Of 1,030 registered as of July 1st, 81% or 833 are airplanes, 153 (15%) are weight shift control "trikes," and 44 (4%) are powered parachutes. No gyros, gliders, or light-than-air have been certified or registered at this time. As always, be aware that FAA registrations may not precisely equal total customer deliveries. *** Our top three leaders -- Flight Design, American Legend, and Evektor -- held their positions. Tecnam again gained a notch, now occupying the #4 position. Jabiru USA and Remos also moved upward (at least in percentage) and Czech Aircraft Works elbowed into the Top Twelve. Flight Design, Jabiru USA, and Remos added the most registrations accounting for over half the increase since last month's tally. Happy July 4th to all!

After 26 months and a few days, LSA now exceed 1,000 aircraft in the U.S. certified aircraft fleet. That sum represents an annual sales rate of nearly 500 aircraft per year. Since June 1st, another 49 fixed wing aircraft have been added, an annual rate of almost 600 aircraft. *** Of 1,030 registered as of July 1st, 81% or 833 are airplanes, 153 (15%) are weight shift control “trikes,” and 44 (4%) are powered parachutes. No gyros, gliders, or light-than-air have been certified or registered at this time. As always, be aware that FAA registrations may not precisely equal total customer deliveries. *** Our top three leaders — Flight Design, American Legend, and Evektor — held their positions. Tecnam again gained a notch, now occupying the #4 position. Jabiru USA and Remos also moved upward (at least in percentage) and Czech Aircraft Works elbowed into the Top Twelve.

Light-Sport FAA Registrations Continue to Rise

By Dan Johnson || May 21, 2007 Leave a Comment

In the last month, market shares didn't change significantly with the Top Five retaining their positions even while additional newcomers entered the market. Thanks to Jan Fridrich of the Czech LAA for help with the data collection.

Based on FAA data* from early May, 92 new SLSA registrations brought total SLSA to 930 aircraft, up 11% in one month and up 46% since January 2007. *** For sellers in the market, it has become more crowded. Eighteen months ago the LSA community had certified 16 new models; now, we're at 50. More choice is great for consumers but it's challenging for sellers as many choices can slow the purchase decision and new players eat away at market leader shares. *** Despite that observation, the big sellers remain on top. Flight Design retains its leadership position, as does U.S. builder, American Legend (chart). Evektor (#3) and TL Ultralight (#4) held their positions while Tecnam and Fantasy Air moved up one. Some shuffling occurred below the Top Five with U.S. producers AMD and CubCrafters generating more registrations. Jabiru USA moved up a notch and Aeropro and Remos made the top ten...albeit because of two ties. * FAA registrations do not precisely equal customer deliveries.

Based on FAA data* from early May, 92 new SLSA registrations brought total SLSA to 930 aircraft, up 11% in one month and up 46% since January 2007. *** For sellers in the market, it has become more crowded. Eighteen months ago the LSA community had certified 16 new models; now, we’re at 50. More choice is great for consumers but it’s challenging for sellers as many choices can slow the purchase decision and new players eat away at market leader shares. *** Despite that observation, the big sellers remain on top. Flight Design retains its leadership position, as does U.S. builder, American Legend (chart). Evektor (#3) and TL Ultralight (#4) held their positions while Tecnam and Fantasy Air moved up one. Some shuffling occurred below the Top Five with U.S. producers AMD and CubCrafters generating more registrations.