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Kit planes played crucial role in reviving US aviation industry

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Kit planes played crucial role in reviving US aviation industry
Policy
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Simple Flying | Simple Flying

In the 1980s and 1990s, the United States saw a significant decline in the production of general aviation aircraft. Manufacturers reduced output due to various factors, leading to an increased popularity of kit aircraft. These home-built aircraft typically seat one to four people and are constructed using simple methods. The rise in cost and litigation issues during this period discouraged manufacturers from introducing new designs, resulting in kit aircraft outselling factory-built models by a ratio of five to one.

Liability costs severely impacted small aircraft production until legal changes in 1994 provided some relief. Single-engine aircraft production began to recover after these changes. Kit aircraft manufacturers like Lancair and Cirrus Design gained prominence as rising prices for traditional aircraft fueled growth in the kit market.

Kit or home-built aircraft are assembled by individuals or partially built by factories, primarily for recreational purposes rather than profit. Notable examples include the Lancair Propjet, featuring cabin pressurization and a turboprop engine capable of cruising at high speeds, and the Cirrus VK-30, known for its composite construction and unique design.

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By 1978, over 18,000 units of general aviation aircraft were produced annually. However, by 1986 that number had dropped significantly to just 4,000 units, reaching a low of 926 units by 1994. Major manufacturers such as Cessna, Piper Aircraft, and Beechcraft/Raytheon Aircraft were heavily affected.

The rise in product liability costs was cited as a primary reason for reduced production. Liability insurance costs soared from $50 per aircraft in the 1960s to $100,000 by 1988. Insurance underwriters began refusing coverage due to increasing claims against the industry.

In response to these challenges, the General Aviation Revitalization Act (GARA) was introduced in 1994 as an amendment to the Federal Aviation Act of 1958. GARA aimed to mitigate product liability concerns for manufacturers by limiting their liability duration for older aircraft models.

Despite GARA's implementation doubling general aviation production within five years, it remained below its peak levels from the previous decades. The act is still debated today; some argue it revitalized the industry while others believe it had minimal impact or encouraged high-risk vehicle production like kit aircraft.

Organizations Included in this History
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