While the U.S. Congress has averted mandatory budget sequestration until March, including anticipated defense spending cuts, Pentagon watchers have been predicting a new austerity one way or the other for months.
With Hawker Beechcraft attempting to clear the final hurdle in Chapter 11 proceedings and emerge from bankruptcy, Judge Stuart Bernstein said earlier today that he would approve the joint plan of reorganization for all but one of the subsidiaries currently under Chapter 11 protection. Bernstein reserved judgment regarding the Hawker Beechcraft Corp.
A record number of pre-owned business jets changed hands worldwide last year, with 2,240 retail sales transactions logged, up from the previous peak of 2,181 in 2007, according to data released yesterday by business aircraft research firm JetNet. This high point follows three years of gains from the low of 1,539 transactions in 2009, the company added.
“An increasingly prosperous population, an influx of multinational companies, relaxation of the low-altitude airspace rule and a string of growth stimulus expected from [new leaders] means there will be an unprecedented demand for business air travel in China,” Jackie Wu, president of Hong Kong-based business aviation consultancy Jetsolution, said last week at a luxury goods show in Xian, China.
America’s airports will require more than $71 billion worth of essential infrastructure programs over the next five years, according to a report released this week by the Airports Council International-North America (ACI-NA). That total is down by 11 percent over the organization’s previous study, which covered 2011 to 2015, a decrease attributed to the current challenging economic conditions, airline consolidation and capacity reductions and projects completed or postponed beyond the report’s horizon.
Hawker Beechcraft, in what it hopes is the final phase of Chapter 11 bankruptcy proceedings, saw its employment level in Kansas drop to 3,372 as of December 31, triggering an automatic reduction in the annual incentive payment from the State of Kansas. In 2010 the company was granted $45 million in incentives by the state, based on an agreement to maintain employment in Kansas at 4,000.
The delivery schedule for the Eurocopter EC175 medium twin has moved further to the right. The unidentified first customer is now expected to receive the first example in the fourth quarter, instead of September, according to a recent update from Eurocopter. In addition to the delay in avionics development, CEO Lutz Bertling cited the better-than-projected performance, which involves reopening certain certification files.
In ruling on a request by Hawker Beechcraft to “reject certain [warranty support] agreements related to the Hawker 4000 and Premier I and IA,” bankruptcy court judge Stuart Bernstein decided last week to grant the motion in part, and deny it in part.
The Aeronautical Repair Station Association (Arsa) has launched a new survey to measure the impact of the ban on new foreign repair station certificates. The ban is the result of the U.S. Congress prohibiting the FAA from acting on foreign repair station certificate applications submitted after Aug. 3, 2008, because the Transportation Security Administration had not finalized repair station security rules.
Duncan Aviation’s parts consignment program sold $1.07 million in consignment parts and rotables last year and saw the number of consigners increase by nearly 30 percent. Customer parts are stored in Duncan’s warehouse until sold. During the process, the consigner retains title to the inventory. Duncan Aviation also protects the consignor in case the purchaser defaults on payment and maintains insurance against casualty and subsequent loss.