26 February 2013

When Foreign Takeovers Fail

I have written quite a lot about the middle and far eastern buyout of North American and European aerospace manufacturers recently, but then there has been lots to report! Back in 2011 it was announced that Diamond Aircraft Canada had been purchased by the Medrar Financial Group of Dubai. Things went bad, though and the repercussions are just being felt this week.

In the 2010-11 period Diamond had embarked on a program of developing new aircraft designs, like the DA50 Super Star, the twin-engined DA52 and especially the D-Jet, its single-engined jet program. This all required capital and the company was running short of money. During the May 2011 Canadian federal election campaign Diamond threatened to close its London, Ontario plant if government help was not forthcoming. The Conservative government didn't bite, said no and the company finally settled on the buyout by Medrar instead in November 2011.

But it was just today that it was officially revealed by Diamond that the deal with Medrar was never completed and no cash changed hands. Diamond had not previously announced that, just quietly taken down the original press release on the deal, although the announcement can still be seen on Archive.org. There was a rumour on 19 February 2013 that the deal with Medrar had failed so I wasn't totally surprised when the lay off announcement quickly followed.

It seems that the company has been surviving on its own shareholder funding for the last 16 months, while it looked for alternatives. That money seems to have run out this past week and Diamond has now laid off the majority of its workers, leaving only those building ordered aircraft and the parts department, to keep the existing fleet flying. The company has indicated that it needs to restructure and then hopes to bring back the majority of its workers. I guess we will see how that pans out over time.

In general I have stated that these sorts of foreign buyouts are good for the aerospace industry, because investment from North American and European sources seems to be totally absent these days. Without these middle eastern and far eastern buyouts companies like Cirrus and Continental would probably not be in business today. Diamond obviously needs some investment and right away, or it may not be in a position to reopen its doors and carry on its development projects.

In a way it is too bad that Diamond's management took such a secretive approach to the Medrar buyout, not announcing that it had failed, because a potential buyer may have seen that and come forward on their own. With this secretive approach I think most people reading the aviation press would have thought that everything was rosy and no help was needed, until the announcement of the lay-offs this week. Perhaps there is a lesson there for other companies?

Hopefully Diamond will find a buyer quickly and get their employees back to work soon.

Here is my revised current list of western aerospace firms bought out so far:

  • Cirrus Aircraft - Government of the Peoples Republic of China
  • Continental Engines - Government of the Peoples Republic of China
  • Enstrom Helicopter Corporation - Chongqing Helicopter Investment Co, China
  • Epic Aircraft - Engineering LLC, Russia
  • Flightstar Sportplanes - rights, tooling and parts inventory purchased by Yuneec International, China
  • Glasair Aircraft - Jilin Hanxing Group, China
  • International Lease Finance Corp - 90% New China Trust Co Ltd, New China Life Insurance Co Ltd, P3 Investments Ltd and China Aviation Industrial Fund
  • Liberty Aerospace - 75% owned by the Kuwait Finance House, a wholly owned subsidiary of Kuwait Finance House of Bahrain
  • LISA Airplanes - 75% owned by Heima Mining Company, China
  • Piper Aircraft - Government of Brunei
  • Superior Air Parts - Weifang Tianxiang Technology Group, China

Further reading

Pontiac Airpark Acquires More Land

By André Durocher

Pontiac Airpark has expanded. Seven parcels of the old Canadian Pacific Railway (CPR) were recently added to the project.

The importance of this acquisition is not the size of the lots, but their strategic location. The 3 km of the old railroad will give access to about 7 km of public road and to Gatineau Park. The trails that will be constructed will be of use to horseback riders, hikers, snowshoers, crosscountry skiers, etc.

This addition is another attractive feature for the future golf, hotel, restaurant and spa project for which I am looking for a developer.

Changes to Remote Communications Outlets (RCO) in Southern Ontario

By Kevin Psutka, COPA President and CEO

Normally, COPA does not announce changes of this sort because members should be making it a regular habit of checking the Aeronautical Information Circulars (AICs) and Service Project Announcements instead of relying on COPA to do that job for them. However, these changes on 7 March affect a large concentration of our members and they present an opportunity to re-emphasize the need to periodically check these important sources of information so that you are not surprised by changes and unable to communicate in a time of need.

COPA has a link on the bottom of the front page of our web site regarding the RCO project and it has been there for several years. The link explains why the system is changing as well as provides links to Nav Canada’s web site where more information as well as maps of the RCO frequencies can be found. Another way to find out what frequency is available for an FIC in the area where you fly is to check the current CFS. Frequencies are listed under the name of the FIC (Pacific (Kamloops), Edmonton, Winnipeg, London, Quebec, Halifax, Whitehorse, Arctic (North Bay)).

Members should note in their calendars the dates when AICs are introduced and check the AICs on these dates for the latest updates. For changes to the RCO network and other service projects, announcements will be made here. Note, for example, the increase in size of the restricted area around Petawawa, which will impact those who fly up the Ottawa River VFR corridor when the larger area is in place by NOTAM, and the airspace review underway in Alberta.

Don’t get caught with a need to reach an FIC but wondering why you can’t reach them. Stay in the know by checking AICs and Service Announcements.

25 February 2013

Another Aircraft Manufacturer Take-Over

I keep asking which western aircraft manufacturer will be the next one bought up and I never seem to have to wait long for the answer.

This week the answer is LISA Airplanes of France. The company is a relatively new start-up that has been working on developing the very sleek and innovative, if expensive, LISA Akoya amphibian. The Akoya is intended to be a two-seat light-sport design with a price tag of US$350,000.

Development had been going well and the design had attracted ten orders already, but in the summer of 2012 the company ran out of money, laid almost everyone off and was placed in receivership. As usual no western investment was forthcoming and things were not looking good for the company until the Heima Mining Company of Leshan City, China offered US$20 million for a 75% stake in the company, controlling interest and the right to name the chairman.

The Heima Mining Company is, well, in the mining business, but has indicated that it is interested in future aerospace acquisitions.

The Heima investment seems to have put things back on track at LISA, the staff rehired and talk of two more production lines being added. The buyout happened just in time, it seems.

So here is the current list of western aerospace firms bought put so far:

  • Cirrus Aircraft - Government of the Peoples Republic of China
  • Continental Engines - Government of the Peoples Republic of China
  • Diamond Aircraft - majority owned by Medrar Financial Group, Dubai
  • Enstrom Helicopter Corporation - Chongqing Helicopter Investment Co, China
  • Epic Aircraft - Engineering LLC, Russia
  • Flightstar Sportplanes - rights, tooling and parts inventory purchased by Yuneec International, China
  • Glasair Aircraft - Jilin Hanxing Group, China
  • International Lease Finance Corp - 90% New China Trust Co Ltd, New China Life Insurance Co Ltd, P3 Investments Ltd and China Aviation Industrial Fund
  • Liberty Aerospace - 75% owned by the Kuwait Finance House, a wholly owned subsidiary of Kuwait Finance House of Bahrain
  • LISA Airplanes - 75% owned by Heima Mining Company, China
  • Piper Aircraft - Government of Brunei
  • Superior Air Parts - Weifang Tianxiang Technology Group, China

So, who will be next?

Further reading

19 February 2013

Mo's Ski Fly-in Coming Up!

By André Durocher

Don't forget Mo's fly-in is on all day next Saturday, 23 February 2013, regardless of the weather. Come and talk about aviation and eat Mo's well known chili!

Right now we have a wheelplane runway 34-16, 2600 feet long and 100 feet wide with a northwest extension of 1000 feet by 50 feet. The runway condition is currently 1 to 2 inches of compacted snow, with no slippery ice showing. The ice thickness is more than 20 inches.

Details:

  • Ski planes can land on the runway or besides the runway.
  • Helicopters can land northwest of the publicity signs close to the shore.
  • 1 mile West of the Ottawa VOR on the Ottawa river.
  • 45-26-57 N, 75-55-48 W
  • Air: 123.2 MHz
  • Ground: 122.75 MHz
  • Transponder: not required

See you there!

18 February 2013

Planning a Flight to the USA?

From Rockcliffe Flying Club

On Saturday 02 March 2013, from 0900 – 1100 at the Canada Aviation and Space Museum, the Rockcliffe Flying Club will hold a seminar to help you plan your next adventure. The seminar entitled “Planning a Flight to the USA?” will be presented by RFC members Tony Hunt and Chris Hobbs.

Subject areas:

  • Planning a flight to the USA?
  • Prerequisites – what you need to arrange before departure
  • Where to find the essential information
  • Flying into the USA
  • The border crossing, the first landing
  • Flight planning inside the US – how different is it?
  • Returning to Canada
  • Q&A – Discussion

Note that RFC members who wish to rent club aircraft for a US flight are required to attend this presentation or a private briefing before a cross-border flight is authorized.

Pilots who have already flown to the US are welcome to join us and share their knowledge. The presentation will be informal, and we will have time for an open discussion of planning tips, destination ideas, and the recommendations of those who have already been.

Please contact Marie-Eve Richard to register for the event: email or 613-746-4425. The cost of the seminar will be $10.

07 February 2013

Bluebird Flight Academy needs manners!

I guess Bluebird gets no spam, or they like it, because they do enough of it on their own. They post many of the inappropriate comments on this blog and it’s getting really annoying! We can only assume that they hold a very low opinion of others, perhaps even their own students.

Bluebird’s comments add no value and for the most part are gratuitous self-advertising. What’s even worse they often comment anonymously. Lacking even the balls to own up to their spam. I think student pilots and aircraft owners are smarter than Bluebird believes and will not get sucked in by Bluebird’s spam.

For those who care, I am complaining about the comments posted on this blog by Bluebird Flight Academy, Chilliwack, BC. The most recent was on a posting advising that Ottawa Flying Club was offering a class on Foreflight. Bluebirds comment was removed from the blog, but I have copied it here for you to see.

“Best flying school in Canada <http://www.bluebirdflightacademy.com> offers pilots a range of flight planning and in flight services.”

We welcome comments that expand, extend, correct, agree or disagree with our postings, but we are getting tired of Bluebird’s ill mannered advertising on our blog.

02 February 2013

Canadian Aviation Historical Society Convention 2013 in Ottawa

The Canadian Aviation Historical Society has announced that its 2013 convention will be held in Ottawa from Wednesday 11 September to Sunday, 15 September 2013.

The dates will put the CAHS members in town for both the Wings Over Gatineau-Ottawa en vol 2013 airshow and the 73rd Battle of Britain Anniversary Ceremony as well.

This convention will mark CAHS's 50th anniversary, as it was founded in 1963.

Details about the convention are still being finalized, so check the CAHS website for further information closer to the date.

Ottawa Flying Club To Offer Foreflight Class

Ottawa Flying Club has announced that they will be offering a one-session class in the use of Foreflight.

Foreflight is a mobile software application for Apple iPads and iPhones that offers pilots a range of flight planning and inflight services. The application has become very popular among pilots in recent years.

OFC's class will be held on Monday 25 February 2013 from 1900-2100 hrs in the OFC Ground School Classroom and will be taught by Alex Petrovic. The class is intended for both advanced and intermediate student pilots and costs $10.00 to attend.

OFC also has an agreement with ForeFlight to offer the ForeFlight Mobile application to OFC students at a reduced subscription cost per year of $49.99, plus HST. To take advantage of this offer contact Andrew Simpson.