I have reviewed the situation with Kirk (D2) and
Gordon (CFS). Here is what I have learned.
It is true that D2 has closed its doors. CFS has picked up new orders
with Lancair, Epic and D2's other dealers.
CFS has an agreement with Pinpoint Inertial to distribute their ADAHRS
/ GADAHRS.
CFS is NOT responsible for commitments made by any of their dealers.
CFS's official information release is copied below.
CFS is committed to supporting their products.
So what happened? In my opinion the tipping point came with the X-bow
42X problem. D2 could have told their customers that the 425 problems
were a X-bow warranty issue but instead they took the high road and
offered to replace the 425s with Pinpoints. One could imagine that this
put a tremendous strain on cash flow. Kirk thought it was a risk worth
taking but did not foresee two additional events. One was X-bow getting
into the EFIS market (Advanced). This begs the question: If X-bow can
make an ADAHRS for their own EFIS, why didn't they fix the 42Xs???
Second was Garmin's entry into the experimental market. This one is a
real mystery. As Hamid pointed out to me, why would Garmin's least
profitable division (avionics) enter the least profitable sector of
that market (experimental)? I am unaware of any other certified
aviation company that has made this retrograde market expansion. It is
like being married to Cindy Crawford and then having an affair with
Janet Reno. If I were a Garmin experimental customer I would be nervous
that Garmin will wake up and gnaw their arm off to get out of the
market as fast as possible. Remember the Starship?
In the end it was D2's commitment to it's customers that was their
undoing. D2's failure is a loss for everyone
but their competitors. Ironically, D2's failure is also bad news
for X-bow as all the customers that are holding 425's will be looking
to X-bow to make them well.
The good news is that it seems all the products that were distributed
by D2 will still be available to builders through other distributors.
I would also point out that the above is hearsay or the opinion of a
confessed idiot and should not be taken
seriously.
The authorized information is copied below.
Wishing you and yours the Merriest Christmas possible and a safe New
Year with blue skies and cheap fuel.
Regards
Brent Regan
CHELTON FLIGHT SYSTEMS
AUTHORIZED INFORMATION RELEASE
REGARDING
Direct 2 Avionics
<>
December
22, 2006
NOTE: THE FOLLOWING STATEMENT IS THE ONLY
EXPLANATION
THAT CHELTON HAS AUTHORIZED RELATING TO DIRECT 2 AVIONICS SITUATION BY
ANY
EMPLOYEE OF CHELTON. THIS EXPLANATION IS
THE ONLY EXPLANATION YOU ARE AUTHORIZED TO PROVIDE ABOUT DIRECT 2
AVIONICS, ITS
OWNERS OR EMPLOYEES, AND BUSINESS RELATIONSHIP WITH CHELTON. ANY OTHER STATEMENT, SPECULATION, GOSSIP OR
RUMOR REGARDING DIRECT 2 AVONICS WILL NOT BE TOLERATED.
<>
STATEMENT:
To Whom It May Concern:
By now you
have probably heard that DIRECT 2 AVIONICS (“D2A”) had to close its
business. Like you, we at Chelton Flight
Systems were disappointed and concerned that D2A felt it had to take
this
action.
D2A was an
authorized,
independently-owned distributor for Chelton.
Chelton has no ownership or other relationship with D2A. Chelton has received various inquiries from
persons who have alleged that they were told by D2A that parts for
which they
claimed to have paid D2A were “back ordered.”
Chelton currently has no purchase orders from D2A and there are
no “back
orders” to be filled. Chelton has also
suspended taking any further purchase orders from D2A and has suspended
D2A’s
status as an authorized distributor.
Chelton
regrets any inconvenience or financial loss the situation with D2A may
have
caused you.
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