Over the last nearly 100 years, dozens of aircraft companies have gone into bankruptcy, most never to be heard of again. The outcome of the Columbia bankruptcy is a far happier story for everyone, with the possible exception of some unsecured creditors.
The deal is obviously good for Columbia employees, which have numbered as many as 700, making the factory one of the largest employers in Bend, OR. Cessna’s announced they plan to continue production in Bend rather than move the factory, which is an obvious plus to the employees and the local economy.
The deal is especially good for Columbia aircraft owners. Not only will they benefit from Cessna’s large network of service centers, but they are now assured of a long term supply of parts and support. That’s got to be comforting news to anyone who’s invested $600,000 in a new airplane.
Financially, the deal is...
...very good for Cessna. After assumption of liabilities and purchase of inventories (e.g. planes on the factory floor), they will have acquired Columbia’s type certificate and tooling for about $1.5 million. That’s got to be a bargain, considering the many years of engineering and the long road to certification for the two new planes now in Cessna’s product lineup.
What wasn’t immediately clear to me was how the two planes would fit into Cessna’s product line, given the development efforts underway for Cessna’s NGP or Next Generation Piston line of aircraft. Conceivably, these aircraft could be as fast as the Columbias and result in a significant product overlap. Ironically though, the purchase clarifies the design center of the NGP.
All product designs involve tradeoffs, and the NGP was apparently being pulled in two different directions. Clearly there was a need for a faster airplane to compete with Cirrus, Columbia and other aircraft in the 180 knot plus category. However, the NGP was also viewed as a replacement for the venerable family of 172, 182 and 206 aircraft. Considering the 172 was introduced in the late 1950’s, it’s fair to say that Cessna has gotten its money’s worth out of the 50 year old design, and that a replacement is warranted.
However, making a faster airplane implies a higher stall speed. That works against the docile handling characteristics, for which the traditional Cessnas are noted, that make them ideal training aircraft. With the Columbia acquisition, the problem is solved in an elegant and inexpensive way. The Columbias become the high speed piston aircraft in Cessna's line and the NGP design can now be optimized as a family of aircraft to replace the 172, 182, and 206. I love it when a plan comes together!
P.S. As a Columbia factory trained instructor, I can assure you that you’ll love flying the new Cessna 350 and 400!
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