Al Marsh Archive

Legal bill for Hawker bankruptcy hits $5 million; That’s not the most important issue

Friday, September 28th, 2012

It should be no surprise that the bill from Kirkland & Ellis, a New York law firm specializing in bankruptcies and restructuring, has hit $5.1 million, plus expenses of nearly $200,000, for handling the Hawker Beechcraft bankruptcy. Click here and check out document 638. It’s popular but naive to assume that’s too much, or even that it’s a further financial burden on Hawker. The firm negotiated a loan to keep the company going and to pay for the bankruptcy, so the money is there. They negotiated everything during 8,000 hours of work this year, from dealing with the pension plan to getting the approval of two-thirds of the people Hawker owes money to for the pre-China-deal bankruptcy plan. Oh, forgot. They negotiated the deal to sell the company to a Chinese businessman who heads Superior Aviation Beijing. When you read news reports, you assume that’s the final answer. It’s not. Document 638 says the future sale is sitting on a toggle switch, and can go either to China or back to a conventional bankruptcy at any second.The issue missing from the news stories to come–ones that will focus on a $5 million and growing legal bill–is the Chinese deal. What happened? Nothing, so far. Court documents went so far as to promise that the full 45 days granted by the federal bankruptcy court in New York for exclusive negotiation with Superior Aviation Beijing wouldn’t be needed. They were, and we are a month beyond. If I am proven wrong and the deal goes through tomorrow (the lawyers have worked and even filed papers on most Saturdays since the bankruptcy started last spring), I promise to leave this post up as proof that I was wrong. But instead, I think something is wrong with the deal. It’s pretty hard during a recession to find banks, even in China, that will kick in what analysts think is a ridiculous $1.79 billion to buy Hawker. I think they are balking, as I would, although my balking would start at $179 instead of that number with all those zeros. Let’s not distract ourselves by discovering that lawyers make a lot of money. They’re going to make much more than $5 million.

Video shows Dutch mid-air collision

Tuesday, September 11th, 2012

Two banner-towing aircraft from competing political parties demonstrate how NOT to fly formation. Actually they weren’t trying. One airplane got its landing gear tangled in the wing of the other aircraft. The two headed to a beach where one got untangled and made a safe landing, while the other safely landed at a nearby airport.

P-51, Hollywood actress, attracting new pilots

Monday, September 10th, 2012

Just about everyone is talking about ways to grow the pilot population. AOPA created a new department towards that goal. The Iowa Aviation Promotion Group has created a slick Hollywood-style video featuring Doug Rozendaal flying the Commemorative Air Force’s Gunfighter Mustang but with actress Stephanie Brown stepping out of the cockpit at the end, aimed at increasing the pilot population. She appeared in the TV series “Two and a Half Men,” and several movies including “Ash” and “Dating Games People Play.” It can be licensed for meetings and television ads. It has already proven effective in Australia.

Second human-powered helo crash video posted

Friday, September 7th, 2012

University of Maryland officials said the structural break during the last Gamera II flight occurred at the same point as a repaired break from an earlier crash. The statement issued today said U. of Md. students will press on to the final goal of 9.8 feet (they got 9.4 feet and were near the floor when this crash occurred). If they fly for a minute, stay in an 11.7 foot circle, and reach 9.8 feet, they win a $250,000 Sikorsky innovation prize–and endless bragging rights.

Chivalry at 97,000 feet

Thursday, September 6th, 2012

As preparation for the Red Bull Stratos record-breaking parachute jump from a balloon at 120,000 feet in early October, Felix Baumgartner jumped in early August from 97, 145 feet. Why not just go on up to Joe Kittinger’s record of 102,800 feet set on August 16, 1960? Baumgartner wanted to make sure he broke the record on the last flight. If he had gone above 102,800 feet, then the final flight would have broken Baumgartner’s record, not Kittinger’s. He didn’t want to push Kittinger, the mission controller of the Red Bull Stratos project, out of the picture so early. By the way, that Aug. 9 test flight was to have been to 90,000 feet, not 97,000. Does that mean the final flight will be actually above 120,000 feet? You can bet the rent money on it. Baumgartner finally took Kittinger’s advice on the type of gloves to use after his hands became numb on an earlier practice flight, and had no problems. You can also bet the young pup will listen to the wisdom of 84-year-old Kittinger for the October flight. Orlando officials have rennovated Col. Joe Kittinger Park near Orlando Executive Airport. Kittinger was born in Tampa.

Red Bull capsule after hard landing

The flight was delayed to October because the capsule fell on its side in rocky terrain after the Aug. 9 flight, damaging its exterior and systems. The inner pressure vessel survived, but rebuilding seemed like a good idea. (Red Bull photo)

Hawker bankruptcy case to lag through February

Wednesday, September 5th, 2012

A New York bankrupcty court has granted until Feb. 27, 2013, for Hawker Beechcraft to find a solution to its bankruptcy problems. During that time HB will continue to negotiate with Superior Aviation of Beijing for a $1.79 billion buyout, but is not limited to that solution alone. When the deal was announced, HB and the Chinese owner of Superior Aviation said they needed 45 days to work on the deal to the exclusion of all others, adding that it probably wouldn’t take the full 45 days. That period has passed with no deal, but with HB saying progress is good. An attorney told the court there could even be a negotiated deal this week. HB attorneys wanted the additional time–and have reserved the right to ask for an even longer period of exclusive negotiation–before others can file a Chapter 11 plan. The company is still free to drop the Chinese sale and pursue alternatives.  No matter which way the company goes it seems certain HB will move towards being a service company for the aircraft already in the fleet. Industry analyst Brian Foley says the company was already headed that direction before filing for bankruptcy.

Human-powered helicopter has 2nd crash

Monday, August 27th, 2012

UPDATE: Saturday the human-pedaled helicopter named Gamera II after a sic-fi monster turtle (like the regular-sized school mascot) flew again after repairs from an earlier crash. It crashed a second time. See that crash here. The  good news, after reporting no one was injured, is that it rose to 9 feet, just inches from where it needs to be to win a $250,000 Sikorsky prize. It can stay aloft more than a minute, and within an 11.7-ft circle, and reach above nine feet. But it must do all those things on one flight–and not crash–to win. For now the U. of Md. kids have gone back to class–back to the school routine–and back to the drawing boards to make changes to the heavily damaged Gamera II. Months from now you will hear from them again, unless the kids at the University of Toronto get their similar helo flying more than a few inches high and for longer than 14 seconds.

UPDATE: The University of Maryland’s Gamera II human-powered helicopter crashed during a descent Aug. 30, when a blade bumped into a student. There were no injuries. The human-powered helicopter had reached 8.6 feet. To win a Sikorsky $250,000 prize it must stay aloft for 60 seconds (it has done that in a test flight), remain within an 11.7-foot circle (it achieved that, too, on another test flight), and climb to 9.8 feet. It must do all three on one flight, and that has not been accomplished. Here is the crash video. Gamera II has in the past routinely drifted sideways during descent. There are simultaneous attempts by Canadian students at a school in Toronto to win the Sikorsky prize. For a roundup of all attempts nationwide, see this Popular Mechanics article.

UPDATE! In preparation for the August 30 trial, the students on August 28 made an unofficial flight for 65 seconds–long enough to meet one of the Sikorsky requirements–and met a second requirement by staying within an 11.7-foot diameter circle. That’s two out of three requirements. The craft climbed to EIGHT feet (see the exciting video of that here), but if it should make it to 9.8 feet they will have themselves a $250,000 prize. 

In a larger indoor arena, with a few unspecified modifications, the University of Maryland’s Gamera II human-powered helicopter will make a second attempt at the $250,000 Sikorsky Prize this month. Engineering students confirmed a record of nearly 50 seconds on August 15. But the bigger prize is so close they can smell, taste, or feel it–take your pick. To win, the bicyclist sitting at the center of the 114-foot contraption must stay aloft for 60 seconds, achieve a height of 9.8 feet, and  stay inside a circle that is only 11.7 feet in diameter. This time around, the students have a real shot at the 60-second mark, if not the height and navigation marks. The move to the bigger arena means they won’t constantly crash into walls as happened previously.  The attempt will be August 30.  The University of Maryland mascot is the Terrapin turtle with the slogan, “Fear the Turtle.” No one said anything about” terrible.” Still, the Terrapin is one tough dude. It can live in fresh or brackish water–Terrapin don’t care (to borrow a slightly cleaned-up phrase from the YouTube video about a honey badger that faces down a rattlesnake and shows blissful disregard for the reptile’s venom).

China came to learn from Oshkosh, not buy it

Wednesday, August 1st, 2012

China’s participation in EAA AirVenture this year was largely under-reported. They rented one of the $40,000 chalets on the flight line where they briefed American officials and reporters on what their country is doing to improve general aviation and other infrastructure. I made a visit, although I could not attend the briefing, and found a nice group of people eager to learn and to explain their culture. Serving as guide to Chinese officials was Francis Chao, managing director and publisher of China Civil Aviation Report who also operates a “virtual office” in California that informs American businesses about China. Both of his efforts are located in Pittsburg, California (which explains the spelling of the city name). Chao seems to get it–he understands both the American and China perspectives, and was a great supporter of the China visit to Oshkosh. Chinese officials at first wondered why they needed to go to Oshkosh when so many U.S. aviation companies are already traveling to China to seek new markets and joint ventures. Chao felt that Chinese officials needed to see Oshkosh where new, old, and future aerospace are all in one place–and in perspective. Many Americans

China Chalet at EAA AirVenture

are concerned that China is buying every American airplane company in sight, but as airshow star Michael Goulian pointed out to me minutes after I left the China chalet, general aviation needs Chinese money to survive.

My (HDR) view of Oshkosh

Monday, July 30th, 2012

AOPA writers, editors, reporters?, content creators?, whatever we are, each spend three and sometimes more hours per day beside our Husky talking with members during Sun `n Fun, AirVenture, and AOPA Summit. Between visitors, I took this iPhone shot with an app called Pro HDR. It combines three pictures exposed for bright areas, dark ones, and middle tones (the shot you would normally get) and averages them out. The result is “high dynamic range,” or HDR.

This appears to be one of our most popular sweeps planes ever. At Sun `n Fun members told me, “It’s a real GA airplane.” At Oshkosh the main comment was, “It’s beautiful.” That’s a little unusual considering only 10 percent of our members are tailwheel pilots. “I’ll learn to fly a taildragger if I win that one,” a Sun `n Fun visitor said.

Working on her birthday at AirVenture front gate

Monday, July 23rd, 2012

Sharon’s birthday party at AirVenture main gate

Son Stacy with model of Dad’s airplane

The DeSotel family of Luana, Iowa, has made EAA AirVenture a family vacation since 1970–make that a working vacation. They are all EAA volunteers, with Dad Wayne and Mom Sharon working outside at the main gate when the lines get long, and son Stacy issuing credentials to the media. Stacy keeps a model of the family plane with him that was carved by his Dad. Wayne DeSotel not only carved the model, he built the plane, a Piel Emeraude (think French CAP 10 and you’ll have the same airplane, only this one’s not aerobatic). Sharon had a crafts shop she shared with her husband while he built it, but was little encouragement. “I’ll never ride in that thing, and you’ll never finish it,” she said. She is happily wrong on both counts. “I just love the view. People who fly in small aircraft get to see how beautiful this country is.” It was her birthday when this photo was taken and she celebrated with a candle in a muffin the day before AirVenture 2012 began.