A Beechcraft VLJ ? 'We Have No Plans,' Says Randy Groom
Beechcraft has a long tradition of moving pilots up in the
world—bringing them into aviation, allowing them to become owner/pilots and
then introducing them to bigger and better aircraft. You'd think, then, it
would see the emerging VLJ market as one to get into at the ground floor.
Not at all. Beech tells Show News that it may have done a
lot of drawings on napkins, but that's as far as it goes. "We have no plans to
get into the VLJ market," says Beechcraft chief Randy Groom.
"We've looked at it, of course, and we'll continue to look
at it, but it's becoming a very crowded market sector right now and we have
real concerns about the business case for VLJs. The economics are tough with so
many competitors out there. Pricing is going to be tight. A lot of
manufacturers have made assumptions about their volume sales and we think they
are a little off.
"A lot of assumptions have been made about the air taxi
business, for example. We have been watching that very carefully and with a lot
of scepticism. We don't see how it can make business sense.
"Also, the issue of insurance is becoming increasingly
important. I have spoken to a lot of underwriters, and I can tell you that the
rules are not going to change for VLJs.
"Pilot 'progression' is going to be a big concern. You won't
be able to jump from a Baron to a VLJ. With the King Air C90 you have an
excellent safety reputation going back a long way. Underwriters pay a lot of
attention to that.
"When customers come to look at the hard facts about VLJs,
then the jets will have a speed advantage, although not by a huge amount. On
the other side of the ledger, the King Air C90GT is comparable in performance,
but 50% larger. We offer more seats and more baggage. We might be a few hundred
thousand dollars more expensive than a Citation Mustang, but with a
substantially larger cabin. I think a lot of pilots are going to look to a more
logical progression rather than jump into a VLJ."
