AOPA Pilot Blog: Reporting Points

The aircraft developed as a turboprop trainer, and given a name controversial with fans of the original World War II radial-engine T-6 Texan tailwheel airplane, has opened a new market for Hawker Beechcraft. It will serve as an attack aircraft. During testing that ended October 5 near Tucson, the AT-6 demonstrator proved it could accurately drop laser-guided munitions. It is expected to be utilized by air forces around the world. The story of the tests was reported recently by UPI.com. That’s right. The news service, United Press International, begun in 1907 is still around with a headquarters office in downtown Washington, D.C.

Moody’s, which upgrades and downgrades dozens of companies a week, gave Hawker Beechcraft a slightly lower rating September 20. Here is Moody’s explanation:

“The Caa3 rating reflects Hawker Beechcraft’s mounting retained deficit and our view that the soft economy dims chances for profitability anytime soon. Although limited near-term debt maturities exist, with the prospect of further losses we view the capital structure to be unsustainable. We see pronounced risk that some form of debt restructuring may occur. Softness in most developed economies should continue to constrain demand for the smaller and mid-sized cabin aircraft that comprise the company’s Business and General Aviation product portfolio. While management has aggressively lowered overhead and cut production costs, the revenue outlook seems weak.”

Hawker Beechcraft has named a new chief financial officer, one skilled in restructuring companies in transition. The question in some observers’ minds is whether Karin-Joyce “KJ” Tjon Sien Fat was brought in to restructure the company, or to prepare it, or parts of it, for sale.

Hawker Beechcraft CEO Bill Boisture has reconfirmed to employees that a decision will be made by the “end of the first quarter” (by March) on whether to substantially move the company to Louisiana, or remain in Wichita. His comments came at a mid-December employee meeting and were reported in the Wichita Eagle. Employees voted earlier this year to reject a package that included a pay cut but kept the company in Wichita. UPDATE Dec. 20: The state’s Department of Commerce came up with $40 million–much of it training money–and as a result Hawker Beechcraft will stay in Wichita for many years with at least 4,000 workers. Sorry, Louisiana.