In a move that further broadens its single-engine product portfolio, Cessna Aircraft Company became the successful bidder for select assets of Columbia Aircraft Manufacturing Company, a producer of high-performance, single-engine aircraft. The bid of $26.4 million was the high bid in United States Bankruptcy Court for the District of Oregon.
Columbia was the subject of much activity and speculation with Cessna, Cirrus, Versa Capital Management and Park Electrochemical Corporation vying for the Bend-Ore. aircraft company. Cessna was the first, however, having announced its intention to purchase the company in September. Part of the deal, however, was to throw Columbia into bankruptcy. In October, Versa and Park entered the fray and later filed motions objecting to the preferential treatment Cessna was receiving. Cirrus dropped out in November citing Columbia’s problems, saying they would take too many resources to resolve.
Similarly, Park Electrochemical Corp. dropped out of the auction conducted by the bankruptcy court last Tuesday. Park submitted an initial bid on November 20, 2007 after conducting extensive, $500,000 due diligence at Columbia in Bend, Oregon and elsewhere. Park Electrochemical Corp. is a global advanced materials company which develops and manufactures high-technology digital and RF/microwave printed circuit materials (the Nelco® product line) and advanced composite materials (the Nelcote™ product line) principally for the telecommunications and internet infrastructure, high-end computing and aerospace markets.
Columbia was Lancair Company, which was renamed in July 2005. Originally designed by Lance Neibauer in the 1980s, his first model, the Lancair 200 was developed in 1984. Composite Technology Research Malaysia (CTRM) bought a controlling interest in the company in 2003 for over $50 million. Owned by the Malaysian government, CTRM expressed interest in selling the company in 2006.
“This is a significant day as it brings together two top aircraft design and production companies to offer the global general aviation community the widest range of propeller aircraft, along with world-class product support, all under the Cessna brand,” said Cessna Chairman, President and CEO Jack. J. Pelton. “I would like to thank the 400-plus Columbia employees for their continued hard work and dedication during the bankruptcy process. We look forward to welcoming them to the Cessna family.”
Columbia has produced more than 600 aircraft in its 10-year history. “The Columbia models are a good fit with our existing product line,” Pelton said. “We plan to make significant investments in Bend, in people and operations, to bolster customer satisfaction and business profitability. We will continue to improve quality, reliability and performance as we strive to deliver customer value and fulfill our commitments.”
Once the transaction is completed, which is expected to occur by December 4, the Bend operation will take on the Cessna name and be one of six Cessna manufacturing facilities. Cessna intends to rename the current Columbia product line to become the Cessna 350 and the Cessna 400. Cessna and its network of authorized dealers and service centers plan to integrate sales and support of the former Columbia aircraft, and Cessna Parts Distribution is expected to become the source for parts. Cessna also intends to develop direct communications with current owners.
Cessna currently offers eight single-engine piston models, beginning with the recently launched Cessna 162 SkyCatcher light sport aircraft and including seven other high-wing piston models – the 172R, the more powerful 172SP, the new diesel-powered 172TD, standard models 182 and 206, and turbo-charged 182 and 206 models. The new Cessna 350 and Cessna 400 models add low-wing, high-performance and turbocharged piston aircraft options to raise the top end of the Cessna piston product line.
The Cessna 350 will feature an all-composite airframe, Garmin G1000 avionics and GFC700 flight control system, and Teledyne Continental TSIO-550-C engine, while the Cessna 400 will offer the same features with dual turbochargers for the engine. The 400 is one of the fastest piston aircraft in the world with a top speed of 270 miles per hour – more than 235 knots.