With the demise of the bailout package for automakers, at least for the time being, selling their fleet of business aircraft didn't do much to pacify the US Senate. Amid that news Aviation Week reports that the used business jet inventories were up again in November reaching 12.3% of the fleet. This is the highest level since data has been gathered starting in December 1995.
Meanwhile Embraer's Phenom 100 VLJ (very light jet) has received certification from the Brazilian ANAC and the FAA says certification is imminent in the US. The Brazilian manufacturer broke ground last Thursday on its first US aircraft design and assembly center dedicated to the executive jet business. The 150,000 sf center is schedueld to open at the Melbourne International Airport in Florida by 2010.
Hmmm, does this sound familiar? Perhaps similar to what happened in the auto industry? Could we soon find our aircraft assembly business in the same pickle that the auto industry finds itself in now? We now know that when foreign manufacturers build plants in the United States to compete with established US companies the cost differences between start up company costs and legacy costs will result in an unfair advantage to the start up companies and put incredible pressure on established manufacturers to reduce costs or close down.
While the world gets flatter resulting in better products at better prices for consumers manufacturers in the US find themselves in more and more competitive battles in order to survive. I don't know about you, but it sure feels like our world is changing and that manufacturing may not exist in this country sooner rather than later.
Until next time keep your wings straight and level Hersch!
The True and Beautiful—The Sky
Sometimes gentle, sometimes capricious, sometimes awful, never the same for two months together; almost human in its passions, almost spiritual in its tenderness, almost Divine in its infinity.