Dynon Acquires Advanced Flight Systems

[RV7Guy]

I have been wrapped up in recurrent training in Lafayette, LA and have had limited access to computers. When I saw this, I had mixed emotions. I am a huge fan of AFS and have two 5500T's going into my new plane. The current plane has a Dynon 10A.

I have always seen these as two quite divergent companies. Dynon focusing on the more entry level, cost effective and very dependable equipment. And I've viewed AFS as the next step up in quality and capability.

If, and it is a big if, they can definitely remain autonomous it should be a very positive step in the right direction to providing a couple of levels of very high quality equipment.

I think we will all benefit and bring out choices to another level.

[sbalmos]

Likewise sentiments Darwin. I sincerely hope that, long-term, AFS remains completely independent. I guess we'll never really know details, but if it was for manufacturing ability, why did it take a full-blown buyout? Couldn't something less... "drastic"... have been agreed to between the companies? And which Rob contacted whom first about this?

Oh well. I'm crossing my fingers also. Extremely big fan of AFS, fully committed to having them in my plane when I get to that point in the build.

[fl-mike]

I'm guessing that AFS will be leveraging off of some of Dynon's in-house capabilities, like an AHRS rather than buying the Crossbow/Memsic which should help keep costs down. Also, Dynon probably has more manufacturing capability as has already been stated. And of course, engineering collaboration, which is the latest management buzzword.

[dcl]

I have thought about this for a while and make the following conclusions:

1) I am sure these guys have both found times tough in recent years

2) Big company R&D budgets are hard to compete with, these two companies have done it on a comparative shoestring. Remember they have much smaller volumes of sales to spread their R&D costs over.

3) They have forced the big companies to improve their products (and prices) for the home built market.

4) If they mess up, there are some VERY smart people tech and business people in the home built environment who, more out of annoyance than anything else, will start making superior products.

David

[NavyS3BNFO]

As others have said, it doesn't make a whole lot of sense to acquire a competitor and then compete against yourself. If they were truly interested in utilizing the resources of each other, there are other vehicles to do that such as a joint venture etc. I don't see how a straight up acquisition makes sense unless you are acquiring IP to fold into your own product or realize significant synergies (read cost cuts). In either care you would then essentially absorb the acquired company. One of these companies won't exist in its current form in the next 3-5 years.

My theory is you need scale to compete with the Big G which is why other experimental avionics mfgs have exited the market and this is the way to get it. But you can't continue to run two different product lines and realize the benefits. You will need to choose one and go with it.

[Bill Dicus]

With both AFS (3400) and Dynon (D-10A) in my -8 this sounds good. I've been committed to two completely separate systems because of few common failure paths. Sounds like a winner to me!

[Mike S]

Originally Posted by NavyS3BNFO

As others have said, it doesn't make a whole lot of sense to acquire a competitor and then compete against yourself.

Somehow I just do not see things this way-------I see it as capturing sales that otherwise would have gone to a competitor.

Why do you think car company's make so many different models??

[DougJ]

Interesting developement. It could go either way I suppose, but it's not an uncommon thing to have two product lines that are closely related/competitive but manage to support one another. Just a few of examples:

Chevrolet - GMC

Ford - Lincoln

Honda - Accura

Toyota - Lexus

[BonitaRV8]

At least AFS didn't go the way of Blue Mountain! I worked on a project where we used Blue Mountain Engine monitor and EFIS and, when they went belly up, we ended up switching over to MGL. I'm glad it wasn't my money funding the project! I've been planning my RV8 panel around a dual Dynon Skyview system but, in the back of my mind, I keep thinking about Garmin. Not because I think Garmin is any better but because I know they will be here in 10-15 years. I don't know, is it worth the extra $$$?

Scott

[kbehrent]

I certainly have mixed feelings regarding the buyout. I have to admit my first reaction wasn't good. It seemed more like a act of desperation rather than a sound business strategy. I am certainly hopeful, like others have said, it is a stroke of genius. I know Rob did what he thought was best for his family, employees and customers and I wish them all the best both personally and professionally. Rob and his wife are some of the greatest and kindest people you'll ever meet.

AirVenture for AFS and Dynon will be interesting. I think the main topic at the AFS booth is going to be "why should I risk my money on AFS products" instead of showing me what your product offers. It's going to be a really hard sell and the typical sales cycle just got longer. This could also impact Dynon sells if customers are not convinced of the business strategy or that product lines won't eventually be eliminated between the two companies in order to get a "best of breed" solution to compete with Garmin and eliminate unnecessary duplication to rein in cost. Future customers get the benefit, but current customers could get screwed. Nobody wants to buy a product that gets eliminated soon after they purchase it. Look what happened with TruTrak's EFIS. Not sure if that had anything to do with the murky partnership with AFS or not.

I'm sure the salesmen in the Garmin booth will be in high gear taking every advantage of the confusion and uncertainty that customers might have and convince them that their product line is stable, expandable and affordable so why risk your money with Dynon/AFS.

As for me, I was strongly considering upgrading my dual 4500's to the new 5000 series. I'm really conflicted about it now because I really appreciate doing business with Rob/AFS and trust his products but unfortunately AFS is no longer his company and I have serious doubts about the continuation of the AFS product lines. Time will tell.

Just my .02 worth.