Owners To Have Say In Outcome Of Enginemaker's Insolvency

This week, a German court administering the bankruptcy of aircraft-engine manufacturer Thielert AG has named The Thielert Engine Owners Group (THENOG) to the seven-member creditor committee. The committee, made up of major creditors, will help the court direct the outcome of the Thielert insolvency.

"This was our goal for THENOG when we started the group in May," said THENOG board member Dr. Todd House, President of YourJet LLC, an air taxi company in Louisville, KY operating a Diamond DA42 with Thielert Centurion 2.0 engines.

After Thielert declared bankruptcy in May, the engine manufacturer canceled warranties on its engines and nearly quadrupled prices for spare and replacement parts, grounding many Thielert-powered aircraft and rendering the remainder uneconomical to operate.

The Thielert Engine Owners Group was formed in June, and is already working with the FAA and EASA to delay or eliminate what they term "multiple" and "unnecessary" ADs issued by Thielert. The group is also working with aircraft manufacturers and Thielert to improve support and upgrade options for Thielert-powered aircraft.

Every Thielert owner has already benefited from substantial operating cost saving due to the efforts of the group, said Vilis Ositis, a founder of THENOG. "Our position on the Thielert Creditor’s Committee dramatically increases our ability to bring value to our members," he said.

"Through our advocacy on the creditors committee and our legal standing with the German Insolvency Court, we can accelerate the process of bringing relief to owners of aircraft that use Thielert engines," House added.

The International law firm of White & Case represents the group in the insolvency proceeding.

FMI: www.thenog.org