Currently so many general aviation manufacturers must burden the costs of increased liability from potential lawsuits. Even if an aircraft crash is pilot error, attorneys usually get involved with the families of the victims and this triggers a lawsuit. Lawsuits are costly and that means additional staff is needed in the legal department of the Aircraft Manufacturer and each time the products liability insurance increases. If you look at a company like Mooney in Florida consider also their dilemma, super safety record compared to the "Doctor Killer" Bonanza V-tails or the Piper Malibu, with issues of behind power curve tork when going from zero to full throttle flipping over. A company like Cessna producing 39,000 C-172s has the economies of scale advantage, but the legal costs and insurance is still a huge chuck of change and the over all cost pie of an individual produced unit you see? When I talked with an aviation Independent Commercial Insurance Agent who often calls on aviation underwriters for you for quotes on private planes he indicated and stated: Lance, if you think your aircraft insurance is high, try the finish products liability insurance for the manufacturers. We got to talking and I figure it is $50,000 for a Cessna products liability insurance per unit built and $25,000 cost for counsel, legal departments, etc. No wonder China and India think they can build general aviation aircraft cheaper than us? We seem to be killing our manufacturing sector and this is not good for states like New Mexico and Colorado who would like to see General Aviation Manufacturing in their states and some of the jobs for all these future under 1 million dollar mini-light weight Biz Jets. And what about all those jobs in Wichita, KS too? Consider all this in 2006. |