Announce Plans To Expand The Turboprop And Piston Lines, Preview Bankruptcy End Game

Hawker Beechcraft executives kicked off the NBAA convention on something of a somber note Monday in one of the first news conferences on the schedule for the show. Hawker Beechcraft Chairman Bill Boisture said that while the company is "doing business in the normal course," a lot of decisions remain to be made as the company progresses through and emerges from bankruptcy.

Boisture confirmed that the company was going forward with the "Beechcraft-Only" option. The decision has the support of the company's four major lenders, and there has not yet been a decision made on what to do with the jet business. In the near term, for the Hawker 400 and Premier 1A aircraft, engine and avionics warranties will be unaffected, and will remain the responsibility of the respective supplier in accordance with their terms. Boisture said that "Hawker Beechcraft is in discussions with several third-party companies regarding alternatives for the Hawker 4000 and Premier lines to ensure continued service and maintenance for the aircraft."

For the Hawker 900XP, 750, and 400XP lines, all warranties, including engines, avionics airframe, and systems will continue to be honored in the ordinary course of business, Boisture said. But until some agreement is finalized, whether for the sale of the product line or its eventual dissolution, it will be "business as usual." He said that the latest amendments involving the jet business had been filed with the bankruptcy court Monday morning. Going forward, he said, there will be a hearing on November 15th concerning the plan, and then the interested parties will have an opportunity to review and vote on it. A final hearing on the plan will be held January 31st, and Boisture said that the company would emerge from bankruptcy sometime in the first quarter of 2013.

On the military side, Boisture said that the T-6 is in initial low-rate production, and that he fully expects to win the LAS contract from the United States Air Force with the AT-6 offering.

Executive Vice President for Customers Shawn Vick had the pleasure of announcing the good news for the company. He said that as the Beechcraft Corporation, they would be focusing on the turboprop and piston-engine line, which the company "knows best" are the most profitable. Vick unveiled a new prototype turboprop airplane that will be based on the Premier Jet airframe. Vick said that the new airplane will have seating for up to 11 plus the pilot, cruise at 300 knots with a range of 1,750 nautical miles. Vick outlined a five-year development plan in which the piston and turboprop line will grow to 10 aircraft, all Jet-A compatible. He said that the Hakwer 400XPR is nearing certification, and that it "will outperform the Nextant aircraft."

But Vick also said that the current economic situation is being viewed as the "new normal." Both Bill Boisture and Shawn Vick were upbeat about the future of the company, but it was obvious that the loss of the jet business was not a decision they were particularly happy about. Boisture said that the companies that had expressed in interest in buying HBC before the exclusive agreement was reached with Superior were being contacted about the purchase of the jet business. Superior's deposit, by the way, was not refundable even though the deal collapsed. He said that when the bankruptcy is concluded, Beechcraft will emerge as a company that has shed $2.5 billion in debt, has strong labor agreements, and a focus on a profitable and expanding product line.

(Top image ANN Staff photo. Bottom image artist's concept of the turboprop single prototype courtesy Hawker Beechcraft)

FMI: www.hawkerbeechcraft.com