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Sat, May 31, 2003

Would You Buy A (Much) Used Plane From Lanshe Aero? Unwittingly, Someone Has...

An ANN Investigative Report

The overly-contentious saga about the pretty little aerobats that used to be known as the Micco SP20 and SP26 has taken a pretty strange turn. Several months ago, we broke the news that the Seminole Indian Tribe had finally sold the long dormant Micco Aircraft operation to Wadi Rahim (pictured below, right), who also took over Lake Aircraft. It was reportedly Rahim's plan to manufacture both the Lake Amphib series and the SP20 and SP26 out of the old Micco facility in Ft. Pierce, FL.

Last week, a bit of fanfare finally erupted with the news that the combined operation, now called "Lanshe Aerospace," had delivered what they claimed was it's "first production aircraft" to a happy Texas pilot. It seemed like good news... especially to those of us who spent a LOT of time with that series of airplanes and grew to love them.

Then, the rumors started.

ANN soon learned that this was NOT a new production ship, but one that had been "completed" well before Micco shut their doors when the Seminoles pulled the plug on what was (then) a promising aircraft company. Worse, the next rumors to circulate said that the bird that was delivered was "never meant to be sold to the public," to boot, and was actually a tired old test vehicle that had seen some pretty tough usage. Intrigued; ANN staffers contacted Lanshe Aerospace and were initially given a very positive update that promised that Lanshe was getting ready to produce one of the old Micco birds a month and one of the Lakes each month, as well.

As ANN sought particulars about that first aircraft, Lanshe salesman Keith Martinich (at first) seemed to forget the specifics (even the 'N' number) of the ONLY aircraft they had yet sold... to Debra Cunningham of TX. As ANN got into a bit more detail, Martinich's memory improved to the point where he disclosed the serial number and a little more of the history of the aircraft, repeatedly informing us that this was a "new" airplane since it had "never" before been titled. FAA records show it currently titled to Lanshe and its year of manufacture as 2000. A previous registration, to the original manufacturer, Micco Aircraft, has also been recorded.

Not all seems as it should. 

We contacted officials of the now-defunct Micco Aircraft operation as details got murky, and were told in no uncertain terms that the aircraft in question, N820SP, was "NOT a new airplane." As previously noted, this machine had been a test vehicle that was converted over to an SP26 AFTER serving a tough role as an SP20 test aircraft.

Ms. Cunningham, the new owner, was only beginning to understand this as well. Debra Cunningham was a highly motivated commercial and instrument rated pilot who had moved up to her SP26 from a Bellanca Viking, and loved what the SP26 was all about. "They're just beautiful airplanes, very exciting" she said. But her rapture with the sexy little two seat taildragger gave way to concern as a number of maintenance issues occurred... including "popped rivets" and worrisome landing gear issues. Cunningham's concern continued to grow as she learned that her new airplane, sold to her as a factory demonstrator, wasn't even a new SP26... but a homogenized convert from the SP20 program... and had been a part of some of the most rigorous tests that the certification program would undertake (not to mention some "interesting" landings at the hands of ANN E-I-C Jim Campbell--grin).

"That puppy was rode hard and put up wet..." one former Micco staffer told us. The aircraft had been used in a number of iterations as a test vehicle. It conducted Vd dive testing, and was saved once by a spin chute when early attempts to produce a spinnable aircraft ran into problems and the aircraft entered an unrecoverable spin. A number of assemblies were damaged, bent, and "crunched," during testing -- to be replaced and updated as the aircraft took on each new task... but according to former Micco Aircraft President Dewitt Beckett, "that aircraft should never have been sold to the public... it was OK to use as a factory bird and a demonstrator, where we could keep an eye on it and keep learning from it, but selling it is a serious 'safety of flight' issue and I can't believe that they sold it to a buyer without disclosing this history. I wouldn't have touched it with a ten foot pole. Heck, I remember promising an FAA person that we would never sell that airplane... that it would only be a factory ship."

We got back to Lanshe quickly and confronted them with our discussions with Cunningham and Beckett... which, by then, did not sit well with Lanshe's Martinich. Martinich became difficult to talk to, this time around. We kept asking questions and he kept asking us what the question was... but in response to some repeated inquiries, he eventually stated that Ms. Cunningham was still "very happy with her airplane," and feigned surprise when we said that she was not and had said so to us just a few hours earlier. Later in the conversation, he announced that he knew we had talked to her and that he had talked to her again, since... still trying to assert that Cunningham was a happy customer and that no misrepresentations had been made. We attempted to discuss the history of the aircraft... which Martinich flatly refused to get into, in any real detail. Martinich eventually noted that the aircraft (N820SP, SN 26001) "never went through anything abnormal... and never did anything that every aircraft doesn't also do when it's built and certified. It's no different than any other."

Martinich repeatedly denied any misrepresentation(s) over the sale of the aircraft. Though a number of his statements conflicted with others he had given earlier, as our questioning persisted he became insulting and the call was terminated... but not before he tried to sell ANN an airplane, too...

Beckett flatly denies this revisionist history, calling Martinich's statements "absolutely untrue. That airplane was spun, it was worked hard, it used a spin chute, it was used in flutter testing, and was not a truly standard airplane... he's just not telling the truth about that airplane." Cunningham has also (since) talked to Beckett and now voices strong concern over flying her airplane, as a result. "I had concerns before (citing the rivet problem), and now I wouldn't put my husband in it... I know they haven't been truthful with me. I really am worried."

Cunningham paid $150K for the bird -- well below the normal price for a new SP26... but thought that the price difference (as she was told) was because of the aircraft's former status as a 480 hour factory demonstrator. "Now though, he's (Martinich) playing games with me... he's trying to get me to buy a new airplane now, instead, to solve all this." 

There may be a light at the end of the tunnel, sorta, for Cunningham, who seems to have given up on this airframe... but not the breed. According to her last conversation with Martinich, she states that Lanshe is willing to replace her airplane with a "REALLY NEW" airplane for a price about $60K less than the list price ($256K). This would still require her to pony up a lot more money... some $50K or so depending on how it is ultimately equipped. Cunningham is not sure as to whether or not to take the offer and is waiting to get such an offer in writing. However; these kind of tactics, as alleged by those involved (and the run-around/falsehoods we got), on the part of an aircraft manufacturer holding a recently issued FAA Production Certificate gives us reason to be concerned about the way this company will be doing business in the future. Caution might be well-advised.

ANN will stay on top of this issue and will keep you apprised.

FMI: www.lansheaerospace.com

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