Piper Sold to Far-East Investment Fund

[SCCutler]

http://www.aopa.org/aircraft/articles/2009/090501piper.html

Piper spokesman Mark Miller said the move represents a significant capital investment for Piper, and added the new owner is committed to the PiperJet. He called Imprimis a large fund that thinks strategically. “Imprimis’ commitment to Piper gives us the resources we need to fulfill our goals,” Miller said.

When you call out a particular product as being "supported," I think it casts serious doubt on the rest.

 

[Ken Ibold]

Remember, the previous owner was an investment banking firm. When they introduced the PiperJet, essentially they were positioning it as a "me too" product that would pave the way for an IPO. Then the IPO market tanked and the mgmt was, "Ok crap, now we have to build the thing."

So really, it's just gone from one investment company owner to another.

 

[Pilawt]

Old Bill Piper was a savvy businessman intent on making money. But he also cared about general aviation. So did Dwayne Wallace and Al Mooney and Walter and Olive Ann Beech. Can't say the same about the institutional owners of those companies now.

 

[flyersfan31]

Ken is absolutely correct. However, I think this is a good sign. Get committed money to back the company, and they're going to want it to succeed.

Since I got sucked into their marketing machine, I know understand the wisdom of their product plans. They're doing a twist on the classic aircraft step-up program, except they're starting fancy (Matrix) and the ultimate goal is a VLJ instead of a cabin twin piston. I think the weak point is the Meridian, not the Jet. Meridian can't really carry all that much, since it lacks the front cargo bay.

 

[flyingcheesehead]

When you call out a particular product as being "supported," I think it casts serious doubt on the rest.

I've had a lot of doubt about the rest for quite a while now. They already discontinued the Arrow, and it won't be long before all the four-seaters are gone - Diamond is completely whipping their ass in that market.

It won't be long before the Matrix is the low end of Piper's product line.

 

[Joe B]

I've had a lot of doubt about the rest for quite a while now. They already discontinued the Arrow, and it won't be long before all the four-seaters are gone - Diamond is completely whipping their ass in that market.

It won't be long before the Matrix is the low end of Piper's product line.

Piper quietly ceased production of all aircraft other than the PA-46 family last fall. They announced it to the dealers but didn't do a press release. Dealers were told the PA-46 was the only one they could make money on.

Piper's website now offers the Seneca, Seminole, Arrow, and Warrior in addition to the PA-46's. Only the Seneca shows an individual price - I think that means they have some left in inventory. Either that or they've relented and figured out how to make a profit on an $800K airplane. The Seminole, Arrow and Warrior all say "Call for Fleet Pricing". IOW if you want to buy a bunch they'll start up the line for you. But otherwise don't bother them.

Who knows what the new owners will do (besides lose money). A lot will depend on how well Bass gets along with his new leash-holders. There probably won't be much change in strategy while Bass stays CEO. I found it interesting the press release talked about the demand for 2-place to 6-place aircraft in Asia. It'd be fun to see them bring back the Cub but I'm not holding my breath.

 

[tonycondon]

I've had a lot of doubt about the rest for quite a while now. They already discontinued the Arrow, and it won't be long before all the four-seaters are gone - Diamond is completely whipping their ass in that market.

It won't be long before the Matrix is the low end of Piper's product line.

is that a bad thing? The Diamond is a lot cooler, more modern, and sleeker airplane. not to mention it pretty much outperforms the cherokee in every category that I can think of.

 

[flyingcheesehead]

is that a bad thing? The Diamond is a lot cooler, more modern, and sleeker airplane. not to mention it pretty much outperforms the cherokee in every category that I can think of.

Well, I'm glad Diamond is being much more innovative and I think they make great airplanes - But I'm still gonna miss Piper when they tank.

 

[Anthony]

Well, I'm glad Diamond is being much more innovative and I think they make great airplanes - But I'm still gonna miss Piper when they tank.

Me too. The PA-28 in all its guises is a classic, akin to the 172 in many ways. I hope at least a few trickle out of Vero Beach if only for nostalga's sake. My first ride in an airplane when I was a kid was in a PA-28 and the first plane I owned was a PA-28. Solid, time proven airframes that everyone knows.

 

[flyersfan31]

is that a bad thing? The Diamond is a lot cooler, more modern, and sleeker airplane. not to mention it pretty much outperforms the cherokee in every category that I can think of.

Exactly. That product line was doomed when Cirrus and Diamond showed up on the scene. Cessna stayed in the game because they did a much better (more aggressive) job getting in the flight school game.

What Piper has to worry about now is someone horning in on their 6 seat turf with a more modern (composite) design. It's not the biggest market segment they've chosen. Heck, their production doesn't even top 200 in a year IIRC.

 

[flyingcheesehead]

What Piper has to worry about now is someone horning in on their 6 seat turf with a more modern (composite) design. It's not the biggest market segment they've chosen. Heck, their production doesn't even top 200 in a year IIRC.

I don't have the 2008 numbers, but in 2007 Piper delivered 221 aircraft: 27 Warriors, 16 Archers, 8 Arrows, 0 Saratoga HP's, 39 Saratoga TC's, 12 6X's, 0 6XT's, 22 Senecas, 14 Seminoles, 30 Mirages, and 53 Meridians.

 

[flyingcheesehead]

I don't have the 2008 numbers, but in 2007 Piper delivered 221 aircraft: 27 Warriors, 16 Archers, 8 Arrows, 0 Saratoga HP's, 39 Saratoga TC's, 12 6X's, 0 6XT's, 22 Senecas, 14 Seminoles, 30 Mirages, and 53 Meridians.

Wow... I went and grabbed the 2008 numbers, and Piper did even better in 2008 with 268 aircraft: 23 Warriors, 7 Archers, 1 Arrow, 0 Saratoga HP's, 0 6X's, 0 6XT's, 12 Saratoga TC's, 27 Senecas, 24 Seminoles, 21 Mirages, 52 Meridians, and 101 Matrixes!!! (Matrices? ) Okay, I guess it's officially time to admit that I was wrong about the Matrix not going anywhere...

It's interesting to note that everything went down except for the twins and the Matrix (which could hardly go down as it was brand new).

But Diamond sold 308 aircraft between their 3 models, Hawker Beechcraft sold 435 of their line, Cirrus sold 549 of their 3 models, and Cessna sold 1300 across their line. Piper's best-selling model for 2008, the new Matrix, was behind 8 other models: SR22 (427), C172SP (228), Eclipse 500 (161), DA40 (154), SR20 (115), C400 (110), C182 (109), C-T182 (105), and tied at 101 with the Citation Mustang.