News
Hawker reveals future plans at NBAA show
Oct. 30, 2012, Orlando, Fla. - There is life after bankruptcy, Hawker Beechcraft officials stressed at a crowded press conference Monday at the National Business Aviation Association’s annual convention in Orlando.
October 30, 2012 By The Wichita Eagle
Company officials spent an hour talking about the Chapter 11
bankruptcy proceedings, what happened with failed talks with Superior
Aviation Beijing, the company’s jet business, and life going forward as a
re-energized Beechcraft Corp. after it emerges from the bankruptcy.
As a scaled down Beechcraft Corp., the company said it plans to add up to four offerings to its Baron and Beechjet lines.
Development hasn’t been possible as a financially struggling company, officials said.
As a well-funded stand-alone operation, the company will move forward with new and upgraded products.
The
bankruptcy will allow the company to shed $2.5 billion in debt and
stand up as a well funded entity, said Hawker Beechcraft chairman Bill
Boisture.
It will work with the state to make adjustments if employment drops below the agreed-upon levels.
Hawker
Beechcraft received six bids from interested parties from around the
world for the company, officials said. With the decision now to emerge
as a standalone company featuring its Beechjet, Baron, King Air and
trainer products, the company will sell off or close its jet business.
It is now revisiting interest from those original parties plus talking to others.
The
spectrum of options it’s exploring is vast. Those options include
selling the jet business in its entirety with a new owner continuing to
build jets, as well as selling the type certificates and talking to a
group of Hawker jet owners who might want to own the company, Boisture
said.
Those discussions are covered by non-disclosure agreements.
Boisture
did not say how many people Beechcraft would employ as a new company.
But the company has not been building jets for several months, he said.
“We continue to adjust the company’s production capacity to demand and production,” Boisture said.
It will report employment levels to the state, city and county under its incentive agreements in early 2013, he said.
“The benefits we receive under that program are tied to our level of employment,” Boisture said.
The company filed its revised reorganization plan Monday morning with the bankruptcy court.
Customers on Monday were receiving information about the support of their aircraft.
Going
forward, warranties on the engines, avionics, airframes and systems of
Hawker 900XPs, 750s and 400XPs will be honored and details are being
developed.
Hawker 4000 and Premier 1A warranties for engines and
avionics will be honored by suppliers. The company is in discussion with
several companies working on an agreement to make sure owners will
receive service, warranty support, maintenance, field service and parts
and distribution services.
“These decisions are not
insignificant,” Boisture said. “This was the best way to move forward to
transform our company. These decisions are not easily taken.”
The
next step is a hearing by the bankruptcy judge on Nov. 15 to review any
objections to the reorganization plan. Results from that hearing are
scheduled for Jan. 31, and then the company would plan to emerge from
bankruptcy shortly after that, Boisture said.
