New Owner Says He Plans To Manufacture Airplanes ... Someday

The sale of the FAA Type Certificate for the Luscombe 11E at a bankruptcy auction in Altus, Oklahoma fell far short of expectations over the weekend, bringing only about a half million dollars against the company's estimated $16 million in debts. The certificate's value  had been placed at $16 million in Quartz Mountain Aviation's Bankruptcy filing, but bidding opened at just $200,000.

The new owner, Amir Zaki of California, said he eventually plans to re-start production of the four-place Luscombe 11-E, but gave no timeline for that to happen, nor did he say where the 11-E might be built. KSWO-TV reports that Mr. Zaki owns Amir Aircraft Parts in California. An ANN reader who attended the auction tell us in an e-mail that Mr. Zaki also will take possession of the unfinished airplanes, jigs, drawings, tooling, and parts. Finished airplanes on the factory floor sold for between $30,000 and $68,000, according to our source.

The Lawton (OK) Constitution reports that reaction to the sales price ranged from "deflated," from Quartz Mountain board member Gerald Smith, to "disappointed" from Altus, OK City Administrator Michael Nettles and "depressing" from former Quartz Mountain VP Joe Courtney.

The failure of Quartz Mountain Aviation has been blamed largely on the poor economy of the past two year, along with management decisions that did not take economic factors into account. Industry analysts now say that the prospects for creditors and investors to recover their losses are poor at best.

FMI: www.starmanauctions.com