diamondaviators.net

Tommy wrote:What's interesting is what the Chinese allegedly know that apparently know one else knows regarding their perceived ability to further advance just about every aircraft company or any company for that matter that they scoop up. Must be something in the water over their, or, the air maybe.

This is really THE question and here is my guess at an answer:
"Our GA" (let's say anything up to a DA42) has been killed by the following poisons which are specific to western economies:
- over regulation
- lawyeritis
Decades of negative growth have brought this market to a point where nothing makes financial sense anymore.
As a result "Our GA" was a bunch of structurally unprofitable companies milking to death a small group of willing victims (including myself).
The Chinese companies that acquired "Our GA" are typically very close to the government. They not only own a huge potential market, they also own the RULES of the game.
They will be able to cut costs, grow volumes, and deregulate to a sound level. When volumes go up again and profits materialize, all of these investments will look like bargains.
When will they move up to the jet makers?

That's the usual party line, but it feels like two sides of a seesaw with the West becoming rather stable and comfortable and China becoming very aggressively capitalist and upwardly mobile. The Chinese market is rapidly emerging and expansive. Forward-looking Western companies are doing quite well in China, but I'm afraid that what we've seen in the GA world is less forward-looking than, say, Apple, etc. They're also rapidly moving into jets.

I'll definitely grant you the lawyers and litigation are Western issues, but the regulation and investment comparison isn't on the mark and there is more.

Having spent a lot of time in China, I can say that they've become incredible capitalists (who knew that Communism could become as capitalist as anyone?) and they're just a lot more optimistic right now than we in the West are. They have good reason to be: They've moved 600-800m people into the middle class who are now being able to buy iPhones (which are more expensive in China than California), cars (which are far more expensive to license in the big cities than LA or NY), and, of course, flying lessons (which I don't know how expensive they are).

The Chinese do have state-owned enterprises (and Wanfeng is one) in much the same way that US/EU also invests heavily into many Western companies. They also have a ton of regulation; as an experiment check out how even more overbearing the CAAC is compared to its US counterpart, the FAA. The airspace is much more restricted than in the West with relatively tiny amounts available compared with us and heavily controlled by the military.

We just have to get our act together and realize we have a new competitor on the block. Perhaps we will see the US and EU wake up and rise to the occasion.

Innovation comes from the West. You don't see anyone from China innovating or creating. All they do is buy things up from the West.

I'd continue to believe that at our collective peril ...

China Nicks Another GA Property

PAUL BERTORELLI

https://www.avweb.com/eletter/archives/ ... ail#230085

merry x-mas

Keith M wrote:

Antoine wrote:Wait: my sources say this is a FULL sale of the whole DAI group (remainder of Canada and 100% of Wiener Neustadt).

Antoine, you have better sources than Flying Magazine and AVWeb! Does a career in aviation journalism beckon?

Lol Keith, thanks. I am betting that the people here who are contractually involved with DAI have known about it for the last couple of months but were under NDA obligation.

The latest developments in DAI's line-up (especially the foray in helicopters) are starting to make sense to me. There must have been some agreement in the first step of the acquisition that required Wiener Neustadt to develop this and that product prior to the full deal.

Antoine wrote:The Chinese companies that acquired "Our GA" are typically very close to the government. They not only own a huge potential market, they also own the RULES of the game.
They will be able to cut costs, grow volumes, and deregulate to a sound level. When volumes go up again and profits materialize, all of these investments will look like bargains.

Antoine, not to high-jack this thread, but I am really curious: You stepped up to another aircraft from a recently chinese-acquired maker. Do you have any insight into whether we will see more Extra 400-500 coming out of China? That would be awesome. They look like truly great machines.

EDIT: Fixed mis-attributed quote.

Sorry Peter, I have no information...

CFIDave has been unusually quiet about this sale. If anyone would know of details regarding this transaction he would. What's going on Dave? This is one reason I have shied away from Diamond. I never felt I knew what their intentions were, especially for the long term. Not a good feeling to have especially with the size of investment that one makes when purchasing their planes.

Antoine, thanks. It would be too bad to see Extra follow the Dodo...