New Glasair & New GlaStar is trying to convince a US court to shut down German manufacturer OMF's Symphony light aircraft line due to their dispute concerning royalty issues for the aircraft.
In April New Glasair & New GlaStar filed a suit against OMF to reclaim $1.1 million in design royalties for the OMF-160 Symphony. This is based on the design of the GlaStar kitplane, which New Glasair & New GlaStar acquired from Arlington Advanced Development, which in turn had acquired the rights from bankrupt original manufacturer Stoddard Hamilton Aircraft. OMF responded by filing a countersuit against New Glasair (Flight International, 18-23 June).
The threat comes as OMF is ramping up production of the two-seat Symphony, having secured US Federal Aviation Administration and German LBA certification in June for an increased grossweight and instrument flight rules(IFR)-equipped version of the high-wing trainer following a costly two-year effort.
OMF plans to increase production from three to five aircraft a month in December or January, says director of sales and marketing Bill Sprague. However, the company fears potential customers could be put off by the lawsuit, which calls for OMF to stop producing the Symphony because New Glasair claims OMF has failed to pay royalties agreed under a contract with Glastar's previous owners.
New Glasair & New GlaStar president Mikael Via says he expects a court ruling in September. Sprague, however, says any outcome is at least two years away, adding that OMF plans to continue building aircraft in the meantime.
OMF has delivered only 28 OMF-160s to date, with outstanding orders for 65 aircraft. The German manufacturer delivered and displayed the first IFR variant at AirVenture.
Source: Flight International
