---------------------------------------------------------- Avionics-List Digest Archive --- Total Messages Posted Sun 08/17/03: 2 ---------------------------------------------------------- Today's Message Index: ---------------------- 1. 12:52 PM - Re: Garmin/UPS merger (iflyaa5) 2. 07:55 PM - Re: Re: Garmin/UPS merger (James E. Clark) ________________________________ Message 1 _____________________________________ Time: 12:52:08 PM PST US From: "iflyaa5" Subject: Avionics-List: Re: Garmin/UPS merger --> Avionics-List message posted by: "iflyaa5" Are you saying that AOPA does not have a position because both manufacturers buy advertising from the AOPA and you're afraid that taking a position will jeopardize that revenue? That's what it sounds like to me! Furthermore, how does consolidation of the industry lead to product improvement and more affordable costs? Please explain. Free enterprise markets don't work that way! Perhaps the AOPA leadership needs to go back and review their Economics textbooks? I find AOPA's position on this as mousey and cowardly. You love to pat yourselves on the back for taking on government entities such as the FAA, TSA, City of Chicago, etc. But when it comes to taking on advertisers you run scared. Is OUR association of Airplane Owners and Pilots just chartered to defend against the actions of non-revenue generating adversaries, or all of them? Think about it. I don't think AOPA's position on this is in the best interest of the membership! Andy Morehouse Bedford, TX AOPA #04175087 ----- Original Message ----- From: "Barnhart, Larry" Subject: Garmin/UPS merger > Andy, > > AOPA doe snot have a position on the merger of Garmin and UPS. As I am sure > you know both advertise in our magazine and on our web site. For various > reasons AOPA does not place one firm over another. Rather, we do support > what the industry is doing to consolidate manufacturers of equipment and for > product improvement as long as cost is controlled and the products are > available at reasonable costs. > > Thank you. > > Regards, > > Larry Barnhart > Aviation Services Department ----- Original Message ----- From: "ANDY MOREHOUSE" Subject: Garmin acquisition of UPSAT > I am writing to inquire as to the AOPA's position on the announced > acquisition of UPSAT by Garmin. > > In my view this is nothing more than Garmin's attempt to reduce > competition. In a General Aviation marketplace where prices are already > outrageously expensive for modern technology avionics systems, this will > only drive pricing higher. This merger (if approved) will effectively > eliminating one-fourth to one-third of the competition in this arena. In > addition, it is arguable that this merger will be beneficial to the > advancement of technology since advancements are often driven by > competitive pressures. > > As a member, I encourage the AOPA to strongly oppose this merger, and I > offer my support in doing so. Please advise as to any AOPA actions > underway in this area. Additionally, please provide guidance as to what > government representatives and agencies I should address my concerns. > > Andy Morehouse > Member ID# 04175087 ________________________________ Message 2 _____________________________________ Time: 07:55:40 PM PST US From: "James E. Clark" Subject: RE: Avionics-List: Re: Garmin/UPS merger --> Avionics-List message posted by: "James E. Clark" Andy, Since you put this here on the list, here is another perspective. First, I think that AOPA **implied** position is as stated so to speak. They support it given certain assumptions as mentioned. Second, here is a view as to how this **COULD** be a good thing. ***SPECULATION ON*** (with a few facts thrown in) UPS is getting back to the core business. I was happy to see that a big company like UPS picked up II Morrow but I never saw it as core to their business. In the grand scheme of things, UPSAT was only worth sone items that could go into the UPS planes (equipment and results of maybe the CAPSTONE effort). Glad they did it but it was not to last forever. Garmin has been focussed on the G1000 program and not keeping up with some of the GA stuff that UPSAT engineers were working on and trying to get out the door. Of course they did a better Marketing job of what they did have. Also, what they have, though it may be technically inferior, does for some have a better user interface. . So ... UPS decides it wants out of this business and wants to do it gracefully. They have a ferw options: 1. They can "spin out" the company (the current employees go off and try to raise funds in today's market) If they did this, I suspect they would be worse off. Capital comes with a LOT of strings. 2. They can "spin it in" deeper. Basically say, we are no longer interested in you but if you can survive on your own then have at it. Might work, but with Garmin being so dominant in this space for several of the items, they'd have a tough row to hoe. Ya see, when Garmin came out with the "larger, **COLOR**" units SEVERAL years ago and UPSAT did not respond, UPSAT go left in the competitive dust. Sure they had *some* better products but the hot cales seller was the Garmin 430. 3. They could "shop" the division. If this goes on for more than a few days, you shoot the morale of the whole organization in the foot. Also, future customers won't touch you with a ten foot pole. Once you decide to sell, you need to have a buyer **ALREADY** in mind and be willing to close the deal NOW! 4. They could find a "white/black/blue/green knight" to "take things over and do right by everyone". I am sure there are other options but they seemed to have chosen option #4. Of course, it may have just fallen into their laps. Could have been the result of a casual conversation over lunch somewhere. COuld have been that Garmin really needs the additonal talent represented by UPSAT, especially the engineering (though I would suggest that they try to keep as much of the team as possible over the LONG haul). I for one, am not so worried about Garmin purchasing UPSAT as much as I am worried about what LOGIC they will use over time to "rationalize" the priduct lines. To me THAT is the message we need to get to GARMIN (the parent company of the two future divisions). ***SPECULATION OFF*** <> If it were my decision to make here are the 10 things I would do with the products. [You can make up your own 10 if you disagree] 1. Phase out all the GX stuff as fast as possible (already underway I believe) Non color. Probably no cheaper than a color unit today and the 430 or a cheaper future one would be better. 2. Phase out the SL50/SL60 (slimline GPS/GPSCOM) and SL10/SL15 (intercoms) If you are going GPS these days, you might as well get more display funtionality. You don't need to audio panels/intercoms 3. Merge the 430/530/CNX80 teams into one ... keeping them in current locations for some time though. Establish product line roadmap that they all work to. 4. Improve the user interface of the CNX80. 5. Promote the daylight out of the CNX80 to make the point that I am *not* abandoning it. 6. Jack up the CPU in the MX20. CPU's are now available at 10x the speed (for peanuts!)!! 7. Keep the SL70 transponder (because it can be offered as a remote and is slim) 8. Keep the SL40 Com because it is probably the best value COM available *and* is slim 9. Keep the SL30 because it can fit in the SL40 tray as an upgrade for making your plane IFR 10. Eventually set up a "high end" team (G1000 etc) and a "plane ole GA" team with a subgroup FOCUSSED on Experimental people who get to play with early versions of stuff. After doing this, I would then let the MARKET decide what to keep and expand. If there is not demand, KILL IT! Do something the market wants **or** your other/new competitors will. If they did the above, I would be HAPPY that Garmin bought them because in the long run if UPS has decided to get back to basics ("focus on the core") then UPSAT **might** have become not just a casualty but a fatality in this business. James ... user of products from Garmin, UPSAT **and** Honeywell/King ... planned future user of products from Garmin-UPSAT Division Your Mileage May Vary > -----Original Message----- > From: owner-avionics-list-server@matronics.com > [mailto:owner-avionics-list-server@matronics.com]On Behalf Of iflyaa5 > Sent: Sunday, August 17, 2003 3:51 PM > To: "Barnhart, Larry" > Subject: Avionics-List: Re: Garmin/UPS merger > > > --> Avionics-List message posted by: "iflyaa5" > > Are you saying that AOPA does not have a position because both > manufacturers > buy advertising from the AOPA and you're afraid that taking a > position will > jeopardize that revenue? That's what it sounds like to me! > > Furthermore, how does consolidation of the industry lead to product > improvement and more affordable costs? Please explain. Free enterprise > markets don't work that way! Perhaps the AOPA leadership needs to go back > and review their Economics textbooks? > > I find AOPA's position on this as mousey and cowardly. You love to pat > yourselves on the back for taking on government entities such as the FAA, > TSA, City of Chicago, etc. But when it comes to taking on advertisers you > run scared. > > Is OUR association of Airplane Owners and Pilots just chartered to defend > against the actions of non-revenue generating adversaries, or all of them? > Think about it. I don't think AOPA's position on this is in the best > interest of the membership! > > Andy Morehouse > Bedford, TX > AOPA #04175087 > > ----- Original Message ----- > From: "Barnhart, Larry" > To: > Subject: Garmin/UPS merger > > > > Andy, > > > > AOPA doe snot have a position on the merger of Garmin and UPS. As I am > sure > > you know both advertise in our magazine and on our web site. For various > > reasons AOPA does not place one firm over another. Rather, we do support > > what the industry is doing to consolidate manufacturers of equipment and > for > > product improvement as long as cost is controlled and the products are > > available at reasonable costs. > > > > Thank you. > > > > Regards, > > > > Larry Barnhart > > Aviation Services Department > > > ----- Original Message ----- > From: "ANDY MOREHOUSE" > To: > Subject: Garmin acquisition of UPSAT > > > > I am writing to inquire as to the AOPA's position on the announced > > acquisition of UPSAT by Garmin. > > > > In my view this is nothing more than Garmin's attempt to reduce > > competition. In a General Aviation marketplace where prices are already > > outrageously expensive for modern technology avionics systems, this will > > only drive pricing higher. This merger (if approved) will effectively > > eliminating one-fourth to one-third of the competition in this arena. In > > addition, it is arguable that this merger will be beneficial to the > > advancement of technology since advancements are often driven by > > competitive pressures. > > > > As a member, I encourage the AOPA to strongly oppose this merger, and I > > offer my support in doing so. Please advise as to any AOPA actions > > underway in this area. Additionally, please provide guidance as to what > > government representatives and agencies I should address my concerns. > > > > Andy Morehouse > > Member ID# 04175087 > >