Hawker Beechcraft Corporation (HBC) was an American
aerospace manufacturing
An aerospace manufacturer is a company or individual involved in the various aspects of designing, building, testing, selling, and maintaining aircraft, aircraft parts, missiles, rockets, or spacecraft. Aerospace is a high technology industry.
...
company that built the
Beechcraft
Beechcraft is an American brand of civil aviation and military aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of Beech Aircraft Corporation, an American manufacturer of general aviati ...
and Hawker business jet lines of aircraft between 2006 and 2013. The company headquarters was in
Wichita, Kansas
Wichita ( ) is the largest city in the U.S. state of Kansas and the county seat of Sedgwick County, Kansas, Sedgwick County. As of the 2020 United States census, 2020 census, the population of the city was 397,532. The Wichita metro area had ...
, United States, with maintenance and manufacturing locations worldwide. The history of Hawker Beechcraft originated in 1994 when
Raytheon
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Arlington, Virginia. It is one of the largest aerospace and defense manufacturers in the world by revenue and market capitaliza ...
merged its
Beech Aircraft Corporation
Beechcraft is an American brand of civil aviation and military aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of Beech Aircraft Corporation, an American manufacturer of general aviati ...
and Raytheon Corporate Jets units.
In 2006, Raytheon sold the company to a consortium of
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
and
Onex Corporation
Onex Corporation is an investment manager founded in 1984. The firm manages capital on behalf of Onex shareholders, institutional investors and high net worth clients around the world. As of September 30, 2022, Onex had approximately US$47.2 ...
. This deal left the company with a heavy burden of debt which it struggled to support from the economic crisis of 2008 onwards. In April 2012 it defaulted on interest payments and was in breach of banking covenants; this caused widespread speculation that it would enter bankruptcy.
On May 3, 2012, the company entered bankruptcy, filing voluntary petitions under
Chapter 11
Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, wheth ...
in US Bankruptcy Court.
The bankruptcy resulted in the company accepting an offer to be purchased by
Superior Aviation Beijing
Superior Aviation Beijing is a Chinese aircraft manufacturer.
Superior was initially formed as Qingdao Haili Helicopter Co and Qingdao Brantly Investment Group, a private venture that purchased the Brantly International rights and tooling to ...
.
By October 18, 2012, the negotiations for the sale had failed and the company decided to cease jet production and exited bankruptcy on its own on February 19, 2013, under a new name,
Beechcraft Corporation
Beechcraft is an American brand of civil aviation and military aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of Beech Aircraft Corporation, an American manufacturer of general aviati ...
.
History
On February 8, 1980,
Beech Aircraft Corporation
Beechcraft is an American brand of civil aviation and military aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of Beech Aircraft Corporation, an American manufacturer of general aviati ...
became a subsidiary of
Raytheon
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Arlington, Virginia. It is one of the largest aerospace and defense manufacturers in the world by revenue and market capitaliza ...
. In August 1993, Raytheon Company acquired British Aerospace Corporate Jets (producers of the midsized
British Aerospace BAe 125
The British Aerospace 125 is a twinjet mid-size business jet. Originally developed by de Havilland and initially designated as the DH.125 Jet Dragon, it entered production as the Hawker Siddeley HS.125, which was the designation used until 19 ...
line) from
British Aerospace
British Aerospace plc (BAe) was a British aircraft, munitions and defence-systems manufacturer. Its head office was at Warwick House in the Farnborough Aerospace Centre in Farnborough, Hampshire. Formed in 1977, in 1999 it purchased Marconi ...
and renamed the company ''Raytheon Corporate Jets''.
In mid-September 1994, Beech Aircraft Corporation and Raytheon Corporate Jets were merged to form Raytheon Aircraft.
Raytheon decided to use the ''Hawker'' name to show the lineage of the series from
Hawker Siddeley
Hawker Siddeley was a group of British manufacturing companies engaged in aircraft production. Hawker Siddeley combined the legacies of several British aircraft manufacturers, emerging through a series of mergers and acquisitions as one of onl ...
and
Hawker Aircraft
Hawker Aircraft Limited was a British aircraft manufacturer that was responsible for some of the most famous products in British aviation history.
History
Hawker had its roots in the aftermath of the First World War, which resulted in the bank ...
.
2000s
In early 2002, Raytheon announced the return of the Hawker and Beechcraft brands after having marketed them as Raytheon aircraft at the
National Business Aviation Association
The National Business Aviation Association (NBAA) is a non-profit, 501(c)(6) organization based in Washington, DC, United States. NBAA’s mission, according to the non-profit data and transparency organization GuideStar, is: “to foster an en ...
annual convention.
Raytheon announced in July 2006 the sale of its aircraft manufacturing business to focus on its core defense-related business. Bidders for the company included
The Carlyle Group
The Carlyle Group is a multinational private equity, alternative asset management and financial services corporation based in the United States with $376 billion of assets under management. It specializes in private equity, real assets, and pri ...
,
Cerberus Capital Management
Cerberus Capital Management, L.P. is an American private equity firm,Leaders Magazine"Providing Economic Opportunity: An Interview with The Honorable Dan Quayle, Chairman, Cerberus Global Investments, LLC". specializing in distressed investing. ...
and
Onex Corporation
Onex Corporation is an investment manager founded in 1984. The firm manages capital on behalf of Onex shareholders, institutional investors and high net worth clients around the world. As of September 30, 2022, Onex had approximately US$47.2 ...
.
In October 2006, Raytheon Aircraft Company commenced a US$16.3-million facility expansion for
Hawker 4000
The Hawker 4000, originally known as the Hawker Horizon, is a super-midsize business jet developed by Hawker Beechcraft (formerly Raytheon Aircraft Company).
Development
Raytheon announced a new business jet in November 1996 as a larger aircr ...
completion work in
Little Rock, Arkansas
(The Little Rock, The "Little Rock")
, government_type = council-manager government, Council-manager
, leader_title = List of mayors of Little Rock, Arkansas, Mayor
, leader_name = Frank Scott Jr.
, leader_ ...
. The expansion included a new hangar bay, as well as extensions to existing buildings to provide additional woodshop, upholstery, sheet metal and storage space.
In March 2007, the purchase of Raytheon Aircraft Company was finalised at
US$
The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
3.3B. Hawker Beechcraft Inc. was a new company formed by the Canadian investment firm
Onex Partners
Onex Corporation is an investment manager founded in 1984. The firm manages capital on behalf of Onex shareholders, institutional investors and high net worth clients around the world. As of September 30, 2022, Onex had approximately US$47.2 ...
and
GS Capital Partners
Goldman Sachs Capital Partners is the private equity arm of Goldman Sachs, focused on leveraged buyout and growth capital investments globally. The group, which is based in New York City, was founded in 1986. As of 2019, GS Capital Partners had r ...
, an affiliate of global finance house
Goldman Sachs
Goldman Sachs () is an American multinational investment bank and financial services company. Founded in 1869, Goldman Sachs is headquartered at 200 West Street in Lower Manhattan, with regional headquarters in London, Warsaw, Bangalore, H ...
. It operated under the name Hawker Beechcraft Corporation (HBC).
2007 marked the 75th anniversary of Beechcraft and the 60th anniversary of the
Beechcraft Bonanza
The Beechcraft Bonanza is an American general aviation aircraft introduced in 1947 by Beech Aircraft Corporation of Wichita, Kansas. The six-seater, single-engined aircraft is still being produced by Beechcraft and has been in continuous prod ...
, which is the longest running production line of all time.
In 2007 and 2008, the company increased its overseas expansion efforts. On October 25, 2007, HBC officially opened a new aerospace manufacturing facility in
Chihuahua, Mexico and, on March 26, 2010, appointed Hawker Pacific Singapore as its first Hawker 4000 authorized service center in Southeast Asia.
Late-2000s recession
![Beechcraft Baron 58TC](https://upload.wikimedia.org/wikipedia/commons/6/66/Beechcraft_Baron_58TC.jpg)
In response to the
late-2000s recession
The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At t ...
the company announced the lay-off of 490 employees at its Wichita facility in January 2009.
On February 3, 2009, CEO Jim Schuster announced that a further 2,300 employees would be laid off before the end of the year. The company indicated that orders for aircraft had slowed down, especially by fractional jet operators. Schuster said:
After completing cuts of 25% of its workforce (2800 employees) between October 2008 and August 2009, the company indicated that further significant cuts were required. The company's second quarter 2009 results over 2008 data showed that aircraft deliveries had fallen from 129 to 78 aircraft. The company achieved orders of US$450M during the period April to June 2009, but had orders totalling US$366M cancelled in the same period. Overall the company's sales were reduced from US$1.03B in the second quarter of 2008 to US$816.3M in the same period of 2009. One customer,
NetJets
NetJets Inc. is an American company that sells fractional ownership shares in private business jets.
Founded as Executive Jet Airways in 1964, it was later renamed Executive Jet Aviation. NetJets became the first private business jet chart ...
, cancelled orders for 12 aircraft and deferred all other scheduled deliveries until the end of 2010.
By late August 2009, the company laid off an additional 300 workers, bringing the total number of layoffs to 3100.
On August 31, 2009, the company indicated that it was slowing development of the
Beechcraft Premier II, moving its first delivery date into late 2012 or early 2013 due to the poor market for business aircraft.
In late September 2009 the company issued 60-day lay-off notices for another 240 employees. These cuts included 87 positions on the
Horizon
The horizon is the apparent line that separates the surface of a celestial body from its sky when viewed from the perspective of an observer on or near the surface of the relevant body. This line divides all viewing directions based on whether i ...
production line and the rest in the
King Air
The Beechcraft King Air is a line of American utility aircraft produced by Beechcraft. The King Air line comprises a number of twin-turboprop models that have been divided into two families. The Model 90 and 100 series developed in the 1960s ...
line. This set of lay-offs brought the total lay-offs to 3,553 since October 2008, which was about 36 percent of the company workforce.
The company reported that it lost more than US$63M in the first quarter of 2010, even after it cut 2,700 jobs in 2009. In July 2010 the union representing workers at Hawker Beechcraft sent a letter to its members explaining that it was in negotiations at the company's request to deal with, as the company stated "serious challenges... a spectrum of possibilities for the company's future footprint...the likely impact on its workforce in all its locations." The union warned its members in the letter, "The picture we are getting is of a Hawker Beechcraft Wichita that will shrink almost immediately by 75 percent or more within two years, without a guarantee of even the last few jobs staying". The move would reduce the company's work force from 6000 to 1500 workers. CEO Bill Boisture confirmed the situation indicating that demand for the company's products had declined drastically and permanently and that the company may move significant amounts of work to Mississippi, Louisiana, or even outside the United States.
In September 2010 the company announced further cuts of 350 salaried positions to be completed by the end of October 2010.
On October 16, 2010, union machinists at Hawker Beechcraft voted against a new seven-year contract that would have included a 10% pay cut and higher worker health insurance contributions aimed at keeping the company from moving its operations out of Kansas. Union leadership had recommended that its rank and file accept the company's offer rather than risk losing their jobs, but a majority of the union workers voted against the contract, citing their belief that the company will leave Kansas regardless of incentives and concessions.
In December 2010 the company signed an agreement with the
Kansas
Kansas () is a state in the Midwestern United States. Its capital is Topeka, and its largest city is Wichita. Kansas is a landlocked state bordered by Nebraska to the north; Missouri to the east; Oklahoma to the south; and Colorado to the ...
state government to retain facilities in Wichita until at least 2020 and a minimum of 4000 employees in exchange for a US$40M incentive package. Kansas Governor Mark Parkinson termed it "not a huge bailout".
2010s bankruptcy and restructuring
![Hawker4000-N7007Q](https://upload.wikimedia.org/wikipedia/commons/f/f4/Hawker4000-N7007Q.jpg)
In early 2010, the company, in partnership with
FlightSafety International
Berkshire Hathaway Inc. () is an American multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. Its main business and source of capital is insurance, from which it invests the float (the retained premiums ...
, opened the Maintenance Learning Center, for technician training.
By September 2011, the company had US$2.14 billion of debt outstanding.
In December 2011, the company announced that it was slowing down development of the
Hawker 200
The Beechcraft Premier I is a light business jet aircraft manufactured by the Beechcraft division of Hawker Beechcraft. The aircraft was designed to compete with the Cessna CitationJet series of aircraft. jet due to the uncertain state of the economy. CEO Bill Boisture indicated the program was not canceled, saying that the aircraft program is "well positioned to continue...when the time is right."
The company also announced that it was looking for relief from payments on a US$182 million revolving line of credit, due to the general poor economic conditions and low sales of light jets. The company was close to defaulting, but Sam Goodyear, an analyst at CreditSights predicted that the lenders would rearrange the debt rather than force the company to liquidate, as their return in the prevailing market conditions would be poor.
In January 2012, the company's
Beechcraft AT-6 lost out to Embraer's
Tucano in a competition to supply 20 light attack jets to Afghanistan. This contract has since been cancelled due to mistakes in the paperwork and Hawker Beechcraft challenged the deal in court.
The company underwent management changes in February 2012, with CEO Bill Boisture becoming chairman of the company's operating subsidiary Hawker Beechcraft Corp. The board of directors named company turn-around expert
Steve Miller as the new CEO.
In March 2012, the general media began carrying stories that the company would have to soon enter bankruptcy, even though the new CEO Miller had indicated he would work hard to avoid that. In February 2012 Miller had said, "My assignment is to figure out how to get through these financial headwinds without even having to think about Chapter 11 filing. Chapter 11 doesn’t do anybody any good. It’s usually not necessary." Some financial analysts indicated that with so much debt and low share prices that the owners, Onex and Goldman's share in the company may well now be zero. Some analysts indicated that bankruptcy was inevitable. Scott Chan, an analyst with Canaccord Genuity in Toronto stated, "Unless things turn around, this company could go bankrupt soon. Time is running out." Another analyst added, "I think everybody is pretty sure it’s when, not if."
On March 27, 2012, the company struck a deal for $120m of interim financing to give it time to recapitalize the company.
[ Lenders holding about 70 percent of its bank debt agreed to waive covenants on that debt, and defer interest payments until June 29, 2012.][ The following day ]Reuters
Reuters ( ) is a news agency owned by Thomson Reuters Corporation. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide. Reuters is one of the largest news agencies in the world.
The agency was estab ...
reported rumours that the company was negotiating a prearranged bankruptcy "within the next several weeks" to include debtor-in-possession (DIP) financing of less than $500M. On March 30, the company failed to pay interest on its secured credit facility, which Standard & Poors considered a "selective default" and on April 2 it failed to pay $28 million of interest on its unsecured and subordinated notes, which S&P rated as a full default. Hawker also reported that it had breached banking covenants and had failed to file its 10-K for 2011 on time because of problems with its internal financial reporting systems.
In April 2012, the company filed its delayed year-end report with the U.S. Securities and Exchange Commission
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
. The filing stated that "management has concluded that there is substantial doubt about the Company’s ability to continue as a going concern...Due to the fact that we have recurring negative cash flows from operations and recurring losses from operations, we will need to seek additional financing. There is substantial doubt that we will be able to obtain additional equity or debt financing on favorable terms, or at all, in order to have sufficient liquidity to meet our cash requirements for the next twelve months." The company reported that it had lost over US$1B in the previous two years, had US$2.3B in debt and had already missed some interest payments. The SEC filing also stated that the company might sell off assets and equity, renegotiate its debt and may have to enter Chapter 11 bankruptcy
Chapter 11 of the United States Bankruptcy Code (Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, whe ...
to resolve its problems. CEO Miller stated that the company will "decide on a path forward for Hawker Beechcraft that will include a plan that will put the company on firm financial footing and better position Hawker Beechcraft for the future."
On May 3, 2012, the company filed for Chapter 11 bankruptcy after having laid off 350 employees in late April.
By mid-June 2012, the company had filed court documents outlining plans to emerge from bankruptcy. The company plan involved retaining its piston-engined and turboprop aircraft lines and reducing or eliminating its jet aircraft lines. Three different scenarios were considered, all of which involved stopping development of the Beechcraft Premier
The Beechcraft Premier I is a light business jet aircraft manufactured by the Beechcraft division of Hawker Beechcraft. The aircraft was designed to compete with the Cessna CitationJet series of aircraft. and Hawker 200
The Beechcraft Premier I is a light business jet aircraft manufactured by the Beechcraft division of Hawker Beechcraft. The aircraft was designed to compete with the Cessna CitationJet series of aircraft. . One possibility was eliminating all jet production, a second was to retain the Hawker 900
The Hawker 800 is a mid-size twinjet corporate aircraft. It is a development of the British Aerospace BAe 125, and was assembled by Hawker Beechcraft.
Development
In April 1981, the British Aerospace board sanctioned the programme to improve th ...
and Hawker 4000
The Hawker 4000, originally known as the Hawker Horizon, is a super-midsize business jet developed by Hawker Beechcraft (formerly Raytheon Aircraft Company).
Development
Raytheon announced a new business jet in November 1996 as a larger aircr ...
, while the third was to retain only the 900. There was also a stated possibility that the company would be purchased by third party interests as well.
By early July 2012, bankruptcy court filings indicated the company was for sale, saying "the Debtors are continuing to evaluate potential sale alternatives and may elect to incorporate one or more sale or plan sponsorship transactions into the plan." From a list of 35 potential buyers, six had expressed serious interest in purchasing the company's assets. At the same time the company laid off a further 125 workers, bringing the total to 906.
On July 9, 2012, the company accepted an offer of purchase for US$1.79 billion by China-based Superior Aviation Beijing
Superior Aviation Beijing is a Chinese aircraft manufacturer.
Superior was initially formed as Qingdao Haili Helicopter Co and Qingdao Brantly Investment Group, a private venture that purchased the Brantly International rights and tooling to ...
, a holding company in part owned by E-Town, an economic development agency of the municipal government of Beijing, subject to completing the sale agreement within 45 days and regulatory approvals. The sale agreement did not include the subsidiary Hawker Beechcraft Defense Co., builder of the T-6 trainer and AT-6 light attack aircraft. Chairman Bill Boisture stated: "The decision to move forward with Superior was based on two key factors. The bid for the company was the most attractive we received during the strategic review process and the going-forward plan offered the most continuity for our business, allowing us to preserve jobs, product lines and our ability to maintain our commitments to our customers." On July 17, 2012 the bankruptcy court judge granted the company approval to enter the exclusive period of negotiation with Superior Aviation, calling the arrangement a sound exercise of the company's business judgement. The 45-day period included US$50M in interim financing from Superior.
Aviation analysts reacted to the announced deal with skepticism, indicating that the purchase price seemed high for a company with an old product line and little recent investment in research and development. Textron
Textron Inc. is an American industrial conglomerate based in Providence, Rhode Island. Textron's subsidiaries include Arctic Cat, Bell Textron, Textron Aviation (which itself includes the Beechcraft, and Cessna brands), and Lycoming Engines. ...
, the owner of Cessna
Cessna () is an American brand of general aviation aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of the Cessna Aircraft Company, an American general aviation aircraft manufacturing c ...
, indicated that it may be interested in acquiring the company if the deal with Superior was not completed.
On July 16, 2012, the International Association of Machinists and Aerospace workers (IAM), which represents some 3,500 of the company's 18,000 employees, filed in bankruptcy court an objection to the proposed deal with Superior, warning that the sale had "broad implications for the U.S. economy and national security," and contending that Superior's proposal excludes the assumption of Hawker's three pension plans, which the Pension Benefit Guaranty Corporation estimated to be underfunded by about $751 million at that time.
In late July 2012, during the bankruptcy proceedings senior management applied to the court for bonuses to be paid to themselves. The judge approved US$1.9M for 31 senior managers, but deferred a decision on a further US$5.3M in bonuses for the top eight executives until August 6, 2012. Senior managers said they were entitled to the bonuses because guiding the sale of the bankrupt company was difficult and time consuming.
On October 18, 2012, multiple sources reported that the negotiations between Superior Aviation Beijing and Hawker Beechcraft had failed, with a press release from Hawker Beechcraft ascribing the failure to the fact that "the proposed transaction with Superior could not be completed on terms acceptable to the company."[ Specific problems included national security concerns as "the company's defense operations were integrated with its civilian businesses that proved difficult to untangle",][ and legal complications, as "advisers in the US had trouble negotiating with Chinese representatives unfamiliar with US finance and bankruptcy law."][ In response to the failed negotiations, Hawker Beechcraft planned to emerge from bankruptcy protection by filing an amended Joint Plan of Reorganization (POR) with the US Bankruptcy Court for the Southern District of New York,][ and re-emerge as a stand-alone company] renamed Beechcraft Corporation
Beechcraft is an American brand of civil aviation and military aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of Beech Aircraft Corporation, an American manufacturer of general aviati ...
and focused on growing the company's most profitable products.[ A letter from company Chairman, Bill Boisture and Executive Vice-President Shawn Vick stated that their aim is to carry out the reorganization "in a strong operational and financial position." They wrote that this may result in ceasing jet production in favor of piston aircraft manufacturing or refurbishing older aircraft, indicating these "have high growth potential." At the end of October 2012 Vick confirmed that the company would end jet production in favor of a new single-engine turboprop based on the ]Beechcraft Premier
The Beechcraft Premier I is a light business jet aircraft manufactured by the Beechcraft division of Hawker Beechcraft. The aircraft was designed to compete with the Cessna CitationJet series of aircraft. fuselage.
The news of the company's planned cessation of jet production produced a great deal of negative reaction from owners of existing HBC-produced jets, who feared that parts and other support would be hard to get, reducing the value of their aircraft.
In early November 2012, the company announced that it would lay off more than 400 of its remaining workers. The cuts included the closure of its service facilities in Little Rock, Arkansas
(The Little Rock, The "Little Rock")
, government_type = council-manager government, Council-manager
, leader_title = List of mayors of Little Rock, Arkansas, Mayor
, leader_name = Frank Scott Jr.
, leader_ ...
, Mesa, Arizona
Mesa ( ) is a city in Maricopa County, Arizona, Maricopa County, in the U.S. state of Arizona. It is the most populous city in the East Valley (Phoenix metropolitan area), East Valley section of the Phoenix Metropolitan Area. It is bordered by ...
and San Antonio, Texas
("Cradle of Freedom")
, image_map =
, mapsize = 220px
, map_caption = Interactive map of San Antonio
, subdivision_type = Country
, subdivision_name = United States
, subdivision_type1= State
, subdivision_name1 = Texas
, subdivision_t ...
as well as other cuts in Wichita. At the same time the company affirmed that future work would concentrate "on turboprop, piston, special mission and trainer/attack aircraft, as well as our parts, maintenance, repairs and refurbishment businesses."
In late November 2012, the company made application to the bankruptcy court to sell off 20 Hawker 4000
The Hawker 4000, originally known as the Hawker Horizon, is a super-midsize business jet developed by Hawker Beechcraft (formerly Raytheon Aircraft Company).
Development
Raytheon announced a new business jet in November 1996 as a larger aircr ...
s, comprising 13 finished new 4000s, three being built and four used aircraft, at heavily discounted prices to raise money for the company. Existing owners of the aircraft type objected, indicating that this move would greatly devalue their assets. Bankruptcy judge Stuart Bernstein rejected the sale, stating that Hawker Beechcraft had not made a case for the discounted sale being necessary. On December 11, 2012 the judge reversed the order and permitted the sale of the 20 aircraft to proceed, requiring that each sale be reported to the court.
In early December 2012, the court approved a company restructuring including US$525M in term loans and a revolving line of credit, selling the jet production line and renaming the company Beechcraft Corporation. Of the credit, US$400M was used to pay off bankruptcy credit and the balance used for operations.
By early January 2013, the company had agreed to let the Pension Benefit Guaranty Corporation
The Pension Benefit Guaranty Corporation (PBGC) is a United States federally chartered corporation created by the Employee Retirement Income Security Act of 1974 (ERISA) to encourage the continuation and maintenance of voluntary private defined b ...
, a United States government
The federal government of the United States (U.S. federal government or U.S. government) is the national government of the United States, a federal republic located primarily in North America, composed of 50 states, a city within a fede ...
agency, take over two under-funded company pension plans with liabilities of US$1B, paving the way for a group of hedge funds to buy the company. HBC will continue to fund the pensions.
On January 25, 2013, the company announced plans to emerge from bankruptcy, including US$600M in exit financing from JPMorgan
JPMorgan Chase & Co. is an American multinational investment bank and financial services holding company headquartered in New York City and incorporated in Delaware. As of 2022, JPMorgan Chase is the largest bank in the United States, the w ...
and Credit Suisse
Credit Suisse Group AG is a global investment bank and financial services firm founded and based in Switzerland. Headquartered in Zürich, it maintains offices in all major financial centers around the world and is one of the nine global " ...
. The company plan was given final court approval on January 31, 2013. The company named a new board of directors; Bill Boisture once again became CEO of the new Beechcraft Corporation and former CEO Steve Miller became a senior adviser to the board.
The company completed its bankruptcy on February 19, 2013, as a new company, Beechcraft Corporation
Beechcraft is an American brand of civil aviation and military aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of Beech Aircraft Corporation, an American manufacturer of general aviati ...
, the Hawker Beechcraft name being retired. The new and much smaller company will produce the King Air line of aircraft as well as the T-6 and AT-6 military trainer/attack aircraft and the piston-powered single-engined Bonanza and twin-engined Baron aircraft. The jet line was discontinued, but the new company continued to support the aircraft already produced with parts and with engineering and airworthiness documentation.
The new company was acquired in 2014 by Textron Aviation
Textron Aviation Inc. is the general aviation business unit of the conglomerate Textron that was formed in March 2014 following the acquisition of Beech Holdings which included the Beechcraft and Hawker Aircraft businesses. The new business uni ...
, under which the Beechcraft
Beechcraft is an American brand of civil aviation and military aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of Beech Aircraft Corporation, an American manufacturer of general aviati ...
brand name survives.
Facilities
* Chester
Chester is a cathedral city and the county town of Cheshire, England. It is located on the River Dee, close to the English–Welsh border. With a population of 79,645 in 2011,"2011 Census results: People and Population Profile: Chester Loca ...
, United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and North ...
* Little Rock, Arkansas
(The Little Rock, The "Little Rock")
, government_type = council-manager government, Council-manager
, leader_title = List of mayors of Little Rock, Arkansas, Mayor
, leader_name = Frank Scott Jr.
, leader_ ...
, United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
* Salina, Kansas
Salina is a city in, and the county seat of, Saline County, Kansas, United States. As of the 2020 census, the population was 46,889.
In the early 1800s, the Kanza tribal land reached eastward from the middle of the Kansas Territory. In 1 ...
, United States
* Wichita, Kansas
Wichita ( ) is the largest city in the U.S. state of Kansas and the county seat of Sedgwick County, Kansas, Sedgwick County. As of the 2020 United States census, 2020 census, the population of the city was 397,532. The Wichita metro area had ...
, United States (headquarters)
* Chihuahua, Mexico
* Atlanta, Georgia
Atlanta ( ) is the capital and most populous city of the U.S. state of Georgia. It is the seat of Fulton County, the most populous county in Georgia, but its territory falls in both Fulton and DeKalb counties. With a population of 498,715 ...
, United States
Products
Civil
Piston-propeller
* Beechcraft Baron
The Beechcraft Baron is a light twin-engined piston aircraft designed and produced by Beechcraft. The aircraft was introduced in 1961. A low-wing monoplane developed from the Travel Air, it remains in production.
Design and development
The di ...
* Beechcraft Bonanza
The Beechcraft Bonanza is an American general aviation aircraft introduced in 1947 by Beech Aircraft Corporation of Wichita, Kansas. The six-seater, single-engined aircraft is still being produced by Beechcraft and has been in continuous prod ...
Turboprop
* Beechcraft King Air
The Beechcraft King Air is a line of American utility aircraft produced by Beechcraft. The King Air line comprises a number of twin-turboprop models that have been divided into two families. The Model 90 and 100 series developed in the 1960s ...
* Beechcraft Super King Air
The Beechcraft Super King Air family is part of a line of twin-turboprop aircraft produced by Beechcraft. The Model 200 and Model 300 series were originally marketed as the "Super King Air" family; the "Super" designation was dropped in 1996. ...
* Beechcraft 1900
The Beechcraft 1900 is a 19-passenger, pressurized twin-engine turboprop regional airliner manufactured by Beechcraft. It is also used as a freight aircraft and corporate transport, and by several governmental and military organizations. With c ...
Airliner
Jet
* Beechcraft Premier I
The Beechcraft Premier I is a light business jet aircraft manufactured by the Beechcraft division of Hawker Beechcraft. The aircraft was designed to compete with the Cessna CitationJet series of aircraft.
* Hawker 200
The Beechcraft Premier I is a light business jet aircraft manufactured by the Beechcraft division of Hawker Beechcraft. The aircraft was designed to compete with the Cessna CitationJet series of aircraft.
* Hawker 400
The Hawker 400 (also known as the Beechjet 400) is a light business jet. Initially designed and built by Mitsubishi, it has been further developed and updated by the Beech Aircraft Company, now part of Textron Aviation.
It was produced over 3 ...
XP
* Hawker 750
The Hawker 800 is a mid-size twinjet corporate aircraft. It is a development of the British Aerospace BAe 125, and was assembled by Hawker Beechcraft.
Development
In April 1981, the British Aerospace board sanctioned the programme to improve th ...
* Hawker 850XP
The Hawker 800 is a mid-size twinjet corporate aircraft. It is a development of the British Aerospace BAe 125, and was assembled by Hawker Beechcraft.
Development
In April 1981, the British Aerospace board sanctioned the programme to improve t ...
* Hawker 900XP
The Hawker 800 is a mid-size twinjet corporate aircraft. It is a development of the British Aerospace BAe 125, and was assembled by Hawker Beechcraft.
Development
In April 1981, the British Aerospace board sanctioned the programme to improve t ...
* Hawker 1000
The British Aerospace 125 is a twinjet mid-size business jet. Originally developed by de Havilland and initially designated as the DH.125 Jet Dragon, it entered production as the Hawker Siddeley HS.125, which was the designation used until 19 ...
* Hawker 4000
The Hawker 4000, originally known as the Hawker Horizon, is a super-midsize business jet developed by Hawker Beechcraft (formerly Raytheon Aircraft Company).
Development
Raytheon announced a new business jet in November 1996 as a larger aircr ...
Military
* C-12 Huron
The Beechcraft C-12 Huron is the military designation for a series of twin-engine turboprop aircraft based on the Beechcraft Super King Air and Beechcraft 1900. C-12 variants are used by the United States Air Force, United States Army, United ...
* T-1 Jayhawk
The Raytheon T-1 Jayhawk is a twin-engined jet aircraft used by the United States Air Force for advanced pilot training. T-1A students go on to fly airlift and tanker aircraft. The T-400 is a similar version for the Japan Air Self-Defense For ...
* T-6 Texan II
The Beechcraft T-6 Texan II is a single-engine turboprop aircraft built by the Raytheon Aircraft Company (Textron Aviation since 2014). A trainer aircraft based on the Pilatus PC-9, the T-6 has replaced the United States Air Force's Cessna T ...
/CT-156 Harvard II
See also
* Beechcraft
Beechcraft is an American brand of civil aviation and military aircraft owned by Textron Aviation since 2014, headquartered in Wichita, Kansas. Originally, it was a brand of Beech Aircraft Corporation, an American manufacturer of general aviati ...
* Raytheon Aircraft
* Textron Aviation
Textron Aviation Inc. is the general aviation business unit of the conglomerate Textron that was formed in March 2014 following the acquisition of Beech Holdings which included the Beechcraft and Hawker Aircraft businesses. The new business uni ...
References
External links
* Beechcraft Corp.,
About Us: History
" official website of the main successor company to Hawker Beechcraft Corp., which it replaced in 2012–2013.
Hawker Beechcraft Corporation web site
(NOTE: This site is subject to replacement as a result of company bankruptcy and breakup in 2012–2013.)
* Chance, Carl, editor,
Aviation Manufacturers: Beechcraft
" index with links to over 100 articles on the history, people and aircraft of Beechcraft and its predecessor companies (including Hawker-Beechcraft), on the ''Wings Over Kansas'' website.
* Harris, Richard (former Chairman
Kansas Aviation Centennial
on the ''Aviation Answer-Man'' website:
**
" 2001.
**
" rev.3, Updated: August 17, 2012
* Harrison, Kirby J.
New Beechcraft Emerges To Face the Future
" ''Aviation International News,'' March 1, 2013
{{Hawker Beechcraft aircraft
Aircraft manufacturers of the United States
Beechcraft
Raytheon Company
Companies based in Wichita, Kansas
Companies that filed for Chapter 11 bankruptcy in 2012
Manufacturing companies established in 2006
Manufacturing companies disestablished in 2013
2006 establishments in Kansas
2013 disestablishments in Kansas
Onex Corporation
Defunct manufacturing companies based in Kansas