Hawker-Beechcraft Losses

[denverpilot]

So reading this article...

http://www.kansas.com/2011/08/04/1959565/hawker-beechcrafts-q2-deliveries.html

I'm amazed they could lose that much money while still selling 60 aircraft.

How overbuilt are they, anyway? How many birds do they typically expect to sell?

And I shouldn't go here, but are they cutting expensive execs?

Or is all of this "loss" just creative accounting to avoid taxes?

Opinions? I don't get it.

Also reading ahead a bit, I'd think the next "crisis" will be in Commercial paper (loans) if companies are taking loans to keep "appropriate" levels of cash on hand.

Who's running that place? I bet investors are really angry with them and the Board is all over it. (Sarcasm.)

 

[kyleb]

I'm sure their business model is built around selling at least "X" aircraft and I'd bet X is well over 60. So they have volume problems. And with the turn-down in used aircraft prices, they are probably having to cut their new aircraft prices to the bone.

One thing to remember is that some of these losses are "paper losses". For instance, depreciation on their equipment doesn't cost 'em cash (just book value).

But, like everyone else in aviation other than Garmin, I suspect things are tough for them.

 

[Everskyward]

I'm guessing that with the depressed prices in the used market someone could buy a slightly-used Hawker or Beech for a lot less than they could buy a new one from Hawker-Beech.