The big question for the new owners is whether to keep the company whole or split it up. Hawker Beechcraft has had many enquiries from possible buyers and there is an argument that it is worth more if the company is split up.
In The Turnaround Kid, the excellent book written by Steve Miller, CEO of Hawker Beechcraft, he warns companies that the people who lend you money originally are not the ones that deal with you when you get into trouble.
Hawker Beechcraft has spent many months negotiating with these people at banks. According to people whom have attended some of these meetings, the biggest comment they have faced from lenders is: “How have you kept going so long?”
Onex and Goldman Sachs Capital Partners have let Hawker Beechcraft down.
Building an aircraft that flies has less to do with aerodynamics or engines than it does with money or regulatory approval.
At Oriens we believe that people are always a business’ most important asset. Very easy to say – but extraordinarily difficult to live the values that truly underpin that “asset strategy”.
While the leasing market for commercial jets is based on well-understood financing techniques and has attained a high level of sophistication, that for investing in corporate jets is at an earlier stage of development. For many would-be participants the corporate jet market is one of misconceptions and, for the present, incomplete information.
This article covers points made by Kirsten Bartok, vice presentation structured finance, Hawker Beechcraft, at International Corporate Jet & Helicopter Finance 2011.
In the first of a series of columns, Edwin Brenninkmeyer, CEO of Oriens Advisors, explains why aircraft operators need to get their asset strategy right to improve cash-flow and cut legal problems.
When Richard Santulli launched his NetJets fractional ownership scheme it did not take long for others to follow. It will be the same with Milestone Aviation his new helicopter and business jet lessor.