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We could see 100 more SR series aircraft in the air by the end of
this year, if Cirrus reaches a deal to acquire an existing FAR
Part 135 charter company. The firm currently operates 13
SR22s, but believes a fleet of 100 SR series aircraft could
accommoda
In order to compete in today's market, any aircraft
original equipment manufacturer must penetrate the
emerging markets of Europe and China. In mid-
December, Cirrus made its first deal with a Europeanbased
company to reassemble its aircraft. In February,
Cirrus opened its first sales center in China.
An agreement with UK-based Britten-Norman will
provide for final reassembly of the company's SR20s
and 22s. This agreement will give Cirrus the opportunity
to compete against other American-based aircraft
OEMs.
The agreement opens up a larger European market, and
will also serve as a future entry point for other
geographic markets. It's possible that Cirrus' air-taxi
service, using SR22s, will be a viable option for Europe,
as congestion is a problem at the larger airports.
Congestion isn't a problem in European airspace, so the use of smaller planes and better use of smaller
airports would provide better travel options in its growing economy. If Cirrus produces a single-engine jet, that
aircraft could compete with other small jets available in the European market.
As part of the delivery process to European customers, the agreement ensures that flights can operate from
the Britten-Norman airport facility at Bembridge, on the Isle of Wight. This will eliminate the high cost of
transatlantic ferry flights.
David Coleal, Cirrus' executive vice president and COO, said the partnership with B-N gives Cirrus the
opportunity to deliver planes to European customers, just as if they were coming straight from the Minnesotabased
factory.
"The value that this collaboration provides for the customer is that each plane will arrive after amassing only a
few hours of flight time and engine hours, versus the 30 to 40 required for a ferry flight," he said.
He added that a reduction in overall wear and tear would be a significant benefit to European-based
customers. Cirrus has delivered about 250 planes to the European continent. This past January, the
European-based reassembly process began. Cirrus forecasts 100 plane deliveries by 2006 year-end.
The European market has opened up significantly, and Cirrus isn't the only aircraft OEM to put its focus there.
In the past 20 months, Cirrus has increased the number of its European sales centers from three to 12.
Selling aircraft throughout Europe is key to the company's overall financial success.
John Bingham, executive vice president of sales and marketing, said the company's airplanes were a natural
fit for the wide cross section of uses and requirements demanded by the European marketplace.
"Cirrus aircraft are especially suitable for intra-country travel throughout the EU. It makes the personal
transportation experience very simple, safe and seamless," he said.
The company is excited about its new agreement to launch the Cirrus Shanghai Sales Center with the
Shanghai AVMall International Trading Co., Ltd. This will be the first authorized Cirrus sales and support
center in the Chinese marketplace.
Li Linhai, who will oversee Cirrus' Shanghai operation, is manager of government-owned Qianyuan, China's
first private flight club. The name Qianyuan, translated in English as "Frontier," has special meaning. In
November 2003, Linhai became China's first private citizen to obtain ownership in a private GA aircraft, a fourseat
Robinson helicopter.
Shanghai is known for its centralized geographic location and its strength as a center for commerce and
finance. Other aircraft OEMs have made significant inroads into China's budding aviation market, and Cirrus
plans to compete.
Peter Claeys, the regional sales director who oversees Cirrus sales in China and Southeast Asia, said his
group is working to obtain a "validation" of type certificate for the Cirrus aircraft series in China. A validation is
a prerequisite for the application of airworthiness certificates granted by China's governing aviation
organization, which is known as the Civil Aviation Authority of China.
"Entering the potentially enormous Chinese marketplace has been severely restricted for private aircraft
OEMs," Claeys said. "According to the CAAC, less than 100 privately-owned aircraft exist on the Chinese
mainland, in contrast to 200,000 in the U.S."
China is the world's most populous country with more than 1.3 billion people. Prior to May 2003, before
China's Regulation on Flight Control of General Aviation took effect, the government prohibited airplane
　
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