Hawker Beechcraft Corp. (HBC) rolled up to MEBA 2012 with its full line of civil Beechcraft King Air twin turboprops over the past two days as it prepared for a key court hearing, taking place today in the U.S., probing whether it has to honor warranties on Hawker 4000s and Premier I jets if, as intended, it sells its Hawker jets business to rebrand as Beechcraft Corporation.
Hawker Beechcraft, which reported a $44 million net loss and $95 million negative cash flow in October, followed that filing with the bankruptcy court by reporting in a separate filing a sales forecast of $1.9 billion in 2013 as a new, standalone company following its emergence from bankruptcy in February.
Dying is one thing. Being reborn is quite another, as Hawker Beechcraft, its employees, lenders and creditors are discovering during the current bankruptcy and restructuring.
At the NBAA Convention last month, HBC chairman Bill Boisture explained recent events to that point and outlined the Wichita OEM’s future, which he confirmed will not include its business jet line.
The slow and destructive passage of Hurricane Sandy before the 65th NBAA Convention and Tradeshow opened in Orlando on October 30 generated great concern about the safety of travelers and worry about what they would find when they returned home to the Northeast. Although New York-area airports opened in time for return flights, many worried about widespread power outages, severe water damage, destroyed infrastructure and ongoing challenges finding out anything about local facilities because so much of the cellphone network was compromised.
Pending revisions to its current plan for reorganization as indicated to bankruptcy judge Stuart Bernstein November 29, Hawker Beechcraft expects to emerge from Chapter 11 in February 2013, as the Beechcraft Corporation.
A major hurdle facing Hawker Beechcraft in its effort to restructure and emerge from Chapter 11 bankruptcy is the sale of the Wichita OEM’s inventory of Hawker 4000s. The hearing date for the company’s request for court approval of the sale is now set for December 11, following a decision last week by judge Stuart Bernstein to deny the company’s request for an expedited hearing and sale.
The closing of some Hawker Beechcraft (HBC) factory-owned service centers as a result of the manufacturer’s bankruptcy has changed the way customers have their aircraft maintained, especially in the Southwest U.S. Previously, the factory-owned HBC center in Mesa, Ariz., pulled business from the West Coast, Mexico and other areas.
A bankruptcy judge declined to sign an order yesterday allowing Hawker Beechcraft to expedite the sale of approximately 13 new, three in-production and four used Hawker 4000 business jets. On November 16, the company had asked for court authorization of the sale “for the best price possible under the circumstances, on an ‘as-is-where-is’ basis, with no warranty or support commitments.”
Biozyme, the owner of a Hawker Beechcraft (HBC) Premier IA, has filed an objection with the bankruptcy court handling the Hawker Beechcraft proceedings, questioning the manufacturer’s plan to suspend warranty coverage as part of its efforts to exit bankruptcy.
BBA Aviation subsidiary Ontic is expanding its capabilities. At its center-of-excellence MRO facility in Houston, the aftermarket support company is adding services for Hawker Beechcraft’s line of King Airs. Among the services offered are repair and overhaul of the turboprop twin’s landing gear, flight controls and ancillary structures including airframe structural and sheet metal work. Other systems such as the environmental and pneumatic control, mechanical power transfer and oxygen containment and distribution are also included in the services menu.