Richard Aboulafia, vice president of Teal Group, a consulting company that analyzes the aviation industry, said the plane late delivery time of five years and establish itself GE Honda HF120 engine, inflating the cost of the development. Honda declined to confirm the Teal Group estimates but Japanese automotive company has been researching the development of jet aircraft since 1986.
Jet Honda began to be sent to the consumer end of 2015 and the price is slightly higher than its competitors in the light business jet segment conservative. "The biggest mistake ever made by the time of entry in the aircraft business is (to think) that the cash drain on the company will end after the start sent a plane," said Aboulafia. "Often, the cost increases," he said, mentioning the production and marketing costs are also soaring.
Fujino, Honda Aircraft Company's CEO, said the party takes five years to start generating profits. While Aboulafia believes Honda takes longer to close a sunk cost. "If Honda got a miracle, can result in a profit of 1 million dollars per plane, then they have to sell 1,000 aircraft, after they made 100 aircraft that are not profitable," he said.
Jet project relies on Honda's inside pocket. Honda net profit in 2016 of about 3 billion dollars, or three times larger than Textron, maker of Cessna Citation jets M2.Honda hope this project will have intangible benefits.
Namely polishing Honda brand image to win back market share in the North American car, which slipped below 10 percent in recent years. Jet while utilizing the technical expertise to improve the efficiency and performance of the car of the future.