Cessna Buys Columbia Aircrafts

As I had mentioned in an earlier article, a few months ago, Columbia aircraft declared bankruptcy.  It appears that last night at 8:30pm Cessna was awarded the winning bid for Columbia Aircraft’s assets.  Cessna plans to continue sales of the Columbia 350 and 400 under the Cessna brand (new names will be the Cessna 350 and Cessna 400). This is great news for the industry, for Columbia owners in particular and even for Cirrus owners.  Competition is a very good thing and it’s the main driving force that makes sure companies innovate, provide good service and continue to take care of their customers.

I am very surprised at the low winning bid of just $16.4 million for an asset purchase.  This is a huge win for Cessna too as it would be expected that they’ll sell at least 100+ planes per year.  Even if each plane provides a 20% margin, Cessna should be able to recover their purchase price within two years.  Not a bad deal all around.

I look forward to seeing Cessna improve the Columbia sales process and improve the service experience for Columbia owners. If pilots considering a new single-engine piston have good choices, we’re going to start seeing better innovation from the industry.

7 responses to “Cessna Buys Columbia Aircrafts

  1. Hi Hamid,

    Don’t you wish now that you had bought a Columbia instead? Just kidding! I know you will never end up buying anything if we just keep waiting for the next best thing with better features.

    Columbia is a better plane, but as they say in hi-tech, you don’t buy a product, you buy a solution. And Cirrus was definitely better supported than Columbia when you made the buy decision.

    By the way, in addition to the $16.4 million cash payout, Cessna also has to take care of serious accounts payables (about $8 million to Garmin alone), and also various warranty liabilities, and install e-Vade system for current owners who have already paid for it. Seems like the real cost to them will be closer $27 million. Still a great deal for everyone involved I say.

    Great blog! Keep posting and sharing your experiences.

    Ritesh Lal
    (Cirrus renter pilot at Palo ALto)

  2. Ritesh, thanks for the comment. No I definitely don’t wish I had bought the Columbia. I’m sure it will take a while before Cessna makes a positive impact on Columbia. Besides, I see my SR22 as a stepping stone to a Jet in 3-4 years time, so the Cirrus is still the right plane for that purpose.

  3. Ok you said Jet! This is a wild tangent so maybe it give you a blog post idea. The cirrus jet looks awsome. I was doing the math. 300lbs of fule is just over 40 gallons of fuel. The cost of operating that thing just seems awsome. Maybe you could do a comparison between that and the http://www.maverickjets.com/jets/smartjet.php or others that you are looking at. I’m leaning towards the cirrusjet though.

  4. Stacy, that’s a great idea. I’ll do some posts in the future about the VL jets as I learn more about them.

  5. I’m just glad there was a corporation around with the cash and foresight of Cessna to extend the Columbia legacy with Cessna’s added excellence. We all win, because this keeps the SE high performance composite landscape competitive, therefore, less expensive.

  6. I love the Cessna. It’s easy to fly and maintain. Base asking prices aren’t too bad. Picked mine up yesterday! Cheers.

  7. cessna turbo 182, is better many ways.

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