July 30, 2013
Piper Aircraft is continuing to see a steady increase in orders, with both revenues and deliveries up through the first half of the year, the company reports.
The 13% increase in deliveries to 86 aircraft and 11% increase in revenue to $77 million continue a three-year trend of improved results for the Vero Beach, Fla., manufacturer. The company’s top-of-the-line M-Class family continues to slowly edge upward, with three more delivered in the first half, compared with a year ago.
But it is the training market that is starting to help drive improved results. Piper made a strategic decision 18 months ago to jump back into the training market. As part of that decision, Piper upgraded its trainers with new Garmin G1000 avionics, an upgrade requested by several potential training customers.
While first quarter results were down for its trainers as Piper completed the transitions, the second quarter showed a significant pick up in Archers (none delivered in Q1, 23 in Q2) and Senecas (one in Q1, six in Q2).
The company also has taken a number of multi-fleet orders from training companies, including an order announced during AirVenture 2013 from Airline Transport Professionals (ATP) for 10 more Archers. The latest order represents an exercise of options and increase’s ATP’s total to 25 firm orders.
ATP still has options for 75 more under a deal announced earlier this year.
The ATP announcement came on the heels of a similar announcement that CAE signed an agreement naming Piper its “preferred aircraft provider” and included an initial order for 35 aircraft as part of a five-year fleet replenishment effort. The agreement includes possible follow-on orders as part of the plans.
As a result, Piper since has sold out its Archers for the rest of the year and into 2014, Piper President and CEO Simon Caldecott says.