Tag Archives: aviation

Love ‘em & leave ‘em, airline-style

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You know the type. On his best behavior, he comes along and charms her. Not once, not twice, but several times. Each time she thinks, Oh, this time it’ll be different. It’ll work.

But of course it doesn’t.

As soon as someone better comes along, he’s gone in a flash.

Kind of like United Airlines dropping its courtship of No. 6-ranked US Airways for the likes of No. 4-ranked Continental Airlines.

In a decade of on-again, off-again wooing, United has intermittedly pursued a merger with US Air and Continental.

But Continental, apparently United’s true object of affection, has been coy. In 2008, Continental rebuffed United’s advances. Just weeks ago, United was again courting US Air when talks suddenly ended, and United was again in hot pursuit of Continental. Some analysts say United was just using US Air to get Continental jealous — I mean, back to the bargaining table.

If so, it worked.

I’m not the only one seeing a bit of the player in United’s quest for a merger. Industry consultant Mark Sixel also likened Continental and US Air to United’s two girlfriends.

Continental CEO Jeff Smisek himself described Continental as the prettier girlfriend when the United-Continental merger was announced Monday, creating the world’s biggest airline.

“I didn’t want him (United) to marry the ugly girl,” Smisek was quoted as saying. “I wanted him to marry the pretty one, and I’m much prettier.”

Said Sixel:” “The better match all along has been Continental. When it comes to marrying, you pick the one you like better.”

Airlines promise cleaner skies to come

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Flying should soon be getting cleaner. With a nod toward global warming concerns, a group of airlines has pledged to cut 2005 emissions in half by 2050, according to Waste & Recycling News.

During a meeting of the International Air Transport Association in Montreal last week, members of the industry adopted the target. The group represents more than 200 airlines which together carry 93 percent of all scheduled commercial air traffic.

Association members are counting on better fuel efficiency to help them toward their goal. The group predicts average annual mileage gains of 2 percent each year through 2020, according to the Wall Street Journal, and the group also is optimistic about similar fuel efficiency gains through 2050.

Industry members participating in the conference told the Wall Street Journal that the emission reduction goals adopted are attainable with current technology.

Orlando on the rise

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The mighty pull of Mickey Mouse and Daytona Beach already rank Orlando high on the list of destinations for people beginning their travels in Duluth. But you can expect it to climb higher following Allegiant Airline’s announcement today that it will begin offering direct twice-a-week service between Duluth and Orlando.

Currently, Orlando and Phoenix trade back and forth between third and fourth places in the popularity contest.

Allegiant has made Vegas the top pick, carrying about 29,000 people to Sin City last year alone, according to Brian Ryks, executive director of the Duluth Airport Authority.

The seven most popular travel destinations for people using Duluth International Airport in descending order are:
1. Las Vegas
2. Chicago
3. Orlando (tie)
4. Phoenix (tie)
5. New York City
6. Denver
7. Washington, D.C.

Source: Duluth Airport Authority
 

 

Cirrus exec gets promoted

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Patrick Waddick has been tapped to become Cirrus Aircraft’s new chief operating officer, succeeding Brent Wouters in the role.

Wouters ascended to the role of Cirrus’ president and CEO in December, replacing Alan Klapmeier in that post.

After a failed effort to acquire the company’s jet program, Klapmeier is expected to step down from his position of leadership at the end of this month. Alan Klapmeier founded Cirrus with his brother, Dale, in 1984.

Dale Klapmeier continues to serve as Cirrus’ vice chairman.

Waddick joined the Cirrus team in 1988, working on the VK30, a uniquely configured "pusher" aircraft, powered by an aft-mounted propeller. The project evolved into a partnership between Israel and Cirrus to develop the similarly configured ST50 aircraft. Waddick also was actively involved in the development and certification of the SR20 and SR22.

This is the latest in a string of promotions for Waddick, who was named vice president of engineering in 1997 and was promoted to senior vice president of engineering in 2005.

In a release issued by Cirrus, Waddick said: "This is a great team that does great things. So this expanded role is a privilege. I am, and always will be, obsessed with airplanes and flying. Having been part of the early roots of this company, I care deeply about the customer, our people and the product. The drive and spirit of innovation is alive and well at cirrus, and while we’ve accomplished some incredible things in the past, the future is even more compelling."

Waddick earned a bachelor of science degree in engineering mechanics from the University of Wisconsin School of Engineering in 1989. Prior to coming to work at Cirrus, he was an engineer for IBM Corp. In 2004, he won the American Institute of Aeronautics and Astronautics Hap Arnold Award for Excellence in Program management.

Of course, Waddick is also an active pilot. He’s been flying since 1988 and holds an instrument rating.

Klapmeier cools his jets

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One month after unveiling plans to put together an investment team in order to purchase a jet-development program from Cirrus Aircraft, a company he co-founded, Alan Klapmeier apparently announced Friday that negotiations have stalled.

Klapmeier made the revelation to AVweb, an online aviation publication, which posted the news this afternoon. He told the magazine that one of the key "sticking points" in negotiations was the price of the jet program.

Our efforts to get in touch with Klapmeier late this afternoon have so far proven unsuccessful.

Likewise, Todd Simmons, Cirrus’ vice president of marketing, and Charlie Ogburn, an executive director of Arcapita Inc., which owns a majority interest in Cirrus, have not returned calls either.

This is a busy week for the likes of Simmons and Klapmeier, as both are in Oshkosh, Wis., for Airventure, the largest airshow in the nation.

On previous occasions, Cirrus management has said the company will remain committed to developing its first jet aircraft, dubbed the VisionJet, no matter what came of negotiations with Klapmeier and his investment group.

Klapmeier had expressed hope that with additional investment, he could accelerate the development of the new jet aircraft.

Cirrus Aircraft takes aim at Japanese market

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Cirrus Aircraft is making inroads into Japan. This week it announced a partnership with Lotus Air Corp. and the Hirata Gakuen Kobe Air Center, Kobe Airport, Tokyo, Japan, to serve as the sales and distribution center for Cirrus Japan.

“As the designated Cirrus Aircraft sales provider for the region, our main goal is to drive the sales growth and market representation of the Cirrus product line and to inspire the improvement of the Japanese general aviation environment,” said Makoto Taguchi, Cirrus Japan’s marketing director, in a prepared statement.

Cirrus’ new Japanese facility has the capacity to accommodate more than 30 small aircraft. The building also boasts an executive lounge for aircraft owners and pilots plus multi-purpose rooms.

“Japan has Asia’s largest economy, second in the world,” said Ian Bentley, Cirrus vice president and managing director of international sales, in a press release. “I am optimistic that the new Cirrus Japan team will demonstrate that general aviation has a major role to play in that region, as well as Japan.”
 

More on Cirrus co-founder’s bid to acquire jet program

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Without question, Alan Klapmeier’s bid to acquire Cirrus Aircraft’s jet program is in the early stages of development, and the devil will lie in the details of any proposal he can piece together.

But Arcapita, the Atlanta-based investment company which holds a controlling interest in Cirrus, is open to hearing what Klapmeier has to offer, as it seeks additional capital for the jet’s development.

Klapmeier co-founded Cirrus with his brother, Dale, 25 years ago, and still serves as chairman of the company’s board.

“Alan is a renowned aviation innovator, and if anyone can develop a workable plan, it’s probably him. We will take his proposal seriously,” said Charles Ogburn, executive director of Arcapita’s corporate investment group, during a mostly-off-the-record phone conversation this past weekend.

In an interview with AVweb, an online publication covering aviation, Klapmeier explained why he thinks it makes sense for him to personally assemble a team of investors to acquire the jet program and push it forward.

A podcast of that interview will be released Friday, but AVweb has posted a preview.
Aviation journalist Russ Niles asked Klapmeier why Cirrus wouldn’t simply raise money for the program itself.

Klapmeier explained that conventional financing is harder to come by these days, especially when the profitability of Cirrus’ core operations has diminished in the face of recession.
He also suggested that a different breed of investor may be attracted to taking a stake in Cirrus’ upstart jet program.

Here’s an excerpt: “The people who would want to invest in Cirrus as an ongoing production company aren’t necessarily the same people who would want to invest in the jet program. I’ve always thought they should be the same people, and I guess I would have to say I was probably wrong in my view of how people should look at the combined company. Sort of facing economic reality, the question is: How do we bring in outside capital to do this?
 

“There are alternatives, and at this time, I would say none of them are great alternatives:

  •  Me putting together a group to buy the company,
  •  The company trying to finance it itself
  •  Or Arcapita trying to put in additional financing.

"None of them are great alternatives.

“So it comes down to if you believe this is a product that has a market that can be profitably built, that should be built and is good for the long-term customer base, the industry and Cirrus as well. Then, we have to look at these alternatives.”
 

Check out an extended audio clip here. AVweb will release its full podcast of the interview Friday, so watch for that, too.

 

Klapmeier wants to purchase Cirrus’ jet program

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Alan Klapmeier announced Friday he is making a play to purchase the jet program of Cirrus Aircraft. If he’s successful, Klapmeier would wrest these operations away from the very company he founded with his brother, Dale, in 1984.

In an interview with Aero-News Network, an online aviation publication, Klapmeier said: "I’m very excited to announce I’m putting together a team that will raise the funds necessary to purchase the jet program from Cirrus and Arcapita."

Arcapita, based in Atlanta, holds a majority interest in Cirrus. It acquired a 58 percent stake in the company in return for an investment of about $100 million in August 2001. Prior to a name change, Arcapita operated as Crescent Capital, the U.S. investment arm of the First Islamic Bank of Bahrain.

Klapmeier said Merrill Lynch is serving as his investment team’s financial adviser, and the nature of his announcement has all the hallmarks of a developing amicable deal, versus a hostile takeover.

Although Klapmeier relinquished the title of Cirrus’ CEO to Brent Wouters in December, he remains chairman of Cirrus’ board of directors.

Should Klapmeier succeed in his bid, it would split Duluth’s largest manufacturer in two.

Although it has cut staffing in the face of the recession, Cirrus still employs 810 people at its operations in Grand Forks and Duluth and recently announced plans to recall an additional 50 furloughed workers.