Hawker May Acquire VLJ Program, But not Adam

While not interested in developing its own very light jet to add to its stable of business aircraft, Hawker Beechcraft may be interested in acquiring a VLJ program if one becomes available. The obvious candidate is Adam Aircraft, now in bankruptcy and scheduled for auction on April 4. However, Hawker...

For immediate service; more information; and multi-user access (site license), non-profit organization, educational institute pricing, contact Karen Garner kgarner@accessintel.com at (301) 354-1612.

This story is only available to paid subscribers. Please login below with your username and password if you are a subscriber.

Username:
Password:
	What is my password?

Subscribe     Trial

While not interested in developing its own very light jet to add to its stable of business aircraft, Hawker Beechcraft may be interested in acquiring a VLJ program if one becomes available. The obvious candidate is Adam Aircraft, now in bankruptcy and scheduled for auction on April 4. However, Hawker Beechcraft Chair and CEO Jim Schuster rejected the Adam 700.
“I could see a VLJ complementing our lineup," said Schuster in a conference call with analysts on its fourth-quarter financial results. He indicated that the Adam 700 would not be a good fit, “based on what we know right now.” Even so, the company may bid on the company’s composite technology and tooling.
Meanwhile, Adam is hoping for a single buyer for its assets which may provide hope that the Adam 500 and 700 programs could fly out of the ashes of the bankrupt company. The liquidation is being handled by General Capital Partners which has set a minimum bid of $10 million and $250,000, placed in escrow, as the price to be eligible for bidding. The auction bid deadline is April 3 with the sale closing date on April 15. The court will approve the winning bid on April 9, according to the company’s bankruptcy site. So far 10 interested parties have filed confidentiality petitions.
If a single buyer does not appear, then a piecemeal breakup is the next option. Assets include aircraft certification, manufacturing equipment, order backlogs, intellectual property licenses and patents, customer and vendor contracts, aircraft and parts.
The contracts include three air taxi operators Magum Jets which has ordered 110 A700s for its operation in Stratford, Conn., as well as NexusJets with a 96-aircraft order and Hainan Zhong Hong Tai General Airlines with its 50-aircraft order. POGO Jets, expected to launch next year out of Chicopee, Mass., had pegged its fortunes on the A700 until last year when it withdrew from the order book in favor of the Eclipse 500.

Hawker Beechcraft Anniversary with Record Sales
Hawker Beechcraft Corporation (HBC) celebrated its first anniversary as a private company in addition to a record 2007 backlog, record international sales, an increased workforce to over 9,000 employees, an expanded product line with five new aircraft certified during the year. All this, said the company, while leading the industry with revolutionary products like the composite Hawker 4000.
“There has always been great pride in the Hawker and Beechcraft names, and as Hawker Beechcraft Corporation we have returned to the company’s heritage,” said Schuster. “The personal pride demonstrated by all of our employees is what makes us a great company. This has been one of the most successful years in our company’s history.”
Although the celebration honors the company’s first year as Hawker Beechcraft Corporation, the harkens back to the pioneering aviation industry. In 1932, Beech Aircraft Corporation was founded in Wichita, Kan., by Walter H. Beech when he left an executive position with Curtiss-Wright Corporation to start manufacturing airplanes from scratch with his wife and business partner, Olive Ann Beech. Last year, the company celebrated its 75th year.
Over the past year, Hawker Beechcraft Corporation’s accomplishments have included:
• The Beechcraft Bonanza turned 60 years old and is still the most sought after single-engine piston in the world
• HBC certified and introduced five new aircraft into the marketplace – the Hawker 900XP, Hawker 750, Beechcraft King Air 350ER, King Air B200GT and King Air C90GTi
• The company secured multiple large fleet orders from NetJets Europe for 32 Hawker 4000s, and BJETS, based in India and Singapore, for 20 Hawker 850XPs and 900XPs, with an option for 10 additional aircraft
• More than $160 million dollars were invested in research and development and facility improvements
• The company achieved the highest backlog in its 75-year history in 2007 with 60 percent of bookings coming from international customers
• HBC opened its International Sales Headquarters in Chester, U.K.
• The company opened a new sheet metal facility in Chihuahua, Mexico
• Hawker Beechcraft Services announced plans to build a new maintenance and service center in Indianapolis
• HBC opened the first Hawker Beechcraft Authorized Service Center in India
• The Federal Aviation Authority presented HBC with the Diamond Award, its most coveted honor for aircraft maintenance excellence at HBC’s facilities in Bakersfield, Indianapolis, San Antonio, Wichita, Tampa, Van Nuys and Little Rock