Quote:
Originally Posted by Murdoughnut  Salaries are not keeping pace with inflation, and the cost of retirement/medical care is sky rocketing. |
Yeah. I just got a major salary bump. It's not nearly as much as it looks on paper for many of the reasons above.
Quote:
|
I think the tax structure continues to hurt them as well. They pay less in taxes than the upper class, but have a disproportionately lower amount of disposable income - so in a way, they actually pay the most in taxes in terms of the value of their money, as opposed to amount (if that makes sense).
|
Have we really gotten to a regressive taxation setup in this country? Really? I'm asking because I never thought in a million years that we'd get there. Again.
Quote:
|
Anyways, my point is that the upper class can afford VLJ's, business jets, etc. Single engine Cessna's were always the ride of choice for those who wanted the convenience that comes with taking a Cessna somewhere less than 300-400 miles, but couldn't afford the luxury of a twin, turboprob, etc. that was more comfortable for longer trips. I just don't understand - why spend $250k on an aircraft that, if the winds just right, will get you there in more time than it would take to drive? I hope I'm wrong, but I think the market would best be served by a $50k-$100k aircraft with factory auto-fuel STP, and easy to tear down features (for the sake of annual inspections).
|
Here's where I think the distinction is and I don't know this for sure....
But I would wager that it costs Cessna roughly the same amount of money to build a 172 as it does/would to build this new LSA that they're talking about. Where are the major differences between the two? As near as I can tell, it's in components not made by Cessna.
Cessna makes a hell of a lot more money on a $250K airplane than it does on a $100K airplane, all other things being equal. They're taking the long view on protecting margins, as far as I can see it. The minute, and I mean the very minute they believe they can sew up the LSA category without getting eaten alive by low-baller Bob's Airplane Co. LSA kits they'll do it.
Even the Mustang isn't a VLJ - more of an LJ, really. And priced accordingly.
Where I really think VLJs will shine is in fractional partnerships of medium-sized companies - three or four $40-50M companies - maybe a $150M-$350M company requiring a certain degree of executive presence.
A lot of the naysayers are looking at the VLJ market as the new Leisure Doctor Killer...but I think what it's really going to do is make corporate flight more accessible to smaller, leaner corporations who may have a need and not the financial wherewithal to have a share in a Hawker or a G450, y'know?
And I've got a hunch that three or four major golfers will chip in together on one or two of these before long.
