Hawker Beechcraft agrees to deal with Superior

| Hawker Beechcraft | 2012/07/09

Hawker Beechcraft announced Monday that Superior Aviation Beijing Co. will acquire the company for $1.79 billion.

Should the sale be complete, Superior intends to maintain Hawker Beechcraft’s existing operations while also investing substantial capital in the company, and its business and general aviation product line.

The transaction with Superior would not include Hawker Beechcraft Defense Company, which would remain a separate entity.

“Superior has had a long-standing interest in the commercial aircraft business of Hawker Beechcraft, having first approached the company several years ago regarding a potential strategic partnership. With Superior’s previous experience operating a U.S. business and its demonstrated ability to quickly restore a business to profitability after emerging from Chapter 11, we believe a transaction with Superior would maximize value for Hawker Beechcraft and its stakeholders,” said Robert Miller, Hawker Beechcraft CEO. “Importantly, this combination would give Hawker Beechcraft greater access to the Chinese business and general aviation marketplace, which is forecast to grow more than 10 percent a year for the next 10-15 years. We look forward to working toward a definitive agreement.”

No Tags

  

Sponsored Links

One Response to “Hawker Beechcraft agrees to deal with Superior”

  1. It is true that the Tucano is a more capable ainlrape for some scenarios, and it might make sense for a country to have some of them. But the point is irrelevant in this competition, because the Hawker Beech entry met the stated Air Force requirements.Very importantly in this case, the Tucano development was heavily subsidized by the Brazilian government; while on the other hand, the US Air Force led Hawker Beech on for several years, knowing full well that Hawker Beech was sinking $100M of its own money into an ainlrape intended solely for the Air Force’s mission. Then, before even completing its source selection evaluation, the Air Force disqualified Hawker Beech for no given reason.The Air Force led Hawker Beech on by making it clear (off the record, as usual) that further buys of the T-6 trainer would depend on Hawker Beech’s participation in any upcoming light attack ainlrape competition. Then, at the end, in a typically stupid fashion, the Air Force procurement bullies pulled the rug out from under Hawker Beech, making it clear that Hawker Beech had been set up to be a stalking horse in a trumped up “competition.” This kind of heavy-handed procurement malfeasance has been a hallmark of the USAF for decades, resulting in the destruction of many capable companies and the loss tens of thousands of skilled American jobs at all levels over the past 40 years. The number of companies big enough to endure this kind of bullying by US Air Force continues to decline. It is no secret that the US Air Force is the world’s worst customer. The mystery to me is why any rational CEO would waste his company’s resources on trying to deal with them.This kind of fraud by the US Air Force procurement commands has much to do with $700 toilet seats and worse — my guess is that even that seat price is a giveaway, considering all the wasted effort in dealing with them.