GUY NORRIS / LOS ANGELES
Burbank Aeronautical is set to emerge from Chapter 11 as it senses renewed interest in its Stage 3 Boeing programme
Burbank Aeronautical (BAC) II, the California-based hushkit specialist that sought Chapter 11 bankruptcy protection in April, has reversed its earlier decision to suspend production of its recently developed Stage 3 Boeing 707 hushkit and vowed to fight its way back into business.
The company went into Chapter 11 after delays in the arrival of four 707 hushkit customer aircraft to its Burbank conversion site, and the slow down of business on its McDonnell Douglas DC-8-60 series kits. The California courts have, however, accepted BAC IIs re-organisation plans and the company expects to re-emerge from Chapter 11 "relatively quickly" says marketing vice-president Tom McGuire. "We sought protection strictly for re-organisation purposes and not for liquidation," he says.
Meanwhile, BAC is continuing with the final phase of certification tests of its DC-8-50/61 Stage 3 hushkit, and expects to achieve US Federal Aviation Administration approval after the tests' completion - due in the next month.
The kit, which is virtually identical to that developed for the 707, is being offered for a market believed to extend to around 25 viable DC-8 and 707s. BAC II believes prospects for fresh sales have increased since the recent delivery of the first hushkitted 707-300 freighter to Belgium-based Air Memphis.
It is also encouraged by signs of an apparent breakthrough in the protracted row between the US and Europe over the use of hushkitted aircraft within the EU. McGuire says: "Renewed customer interest in the purchase of our Stage 3 Boeing 707 hushkits has caused us to change our plans and now BAC II will continue production of this hushkit."
Factors in favour include the "...close in deadline of 31 March 2002 for ICAO Stage 3 adherence, the imminent withdrawal of Stage 2 Russian cargo aircraft from the European market, the favourable reception in Europe of our previously equipped Stage 3 executive and cargo aircraft, and their improved operating performance."
BAC II says it is also exploring diversifying into production of 707 and DC-8 spares, specialising in nacelle and associated parts.
Source: Flight International
