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Briefing—August 2024

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Key Takeaways:

  • Cirrus Aircraft advised against using GAMI G100UL unleaded fuel in its SR Series, citing material concerns and potential warranty voiding, leading to debate over FAA STC approval versus manufacturer warranty.
  • Icon Aircraft was sold for $15.79 million in a bankruptcy court, significantly less than its initial investment, with uncertainty surrounding the new owner's plans for its future production.
  • The FAA is preparing new regulations to address safety concerns surrounding "hop-on" public charter operations, which currently operate scheduled by-the-seat service under Part 135 rules.
  • The NTSB reiterated its call for the FAA to implement technology to prevent runway incursions, citing the lack of critical safety technology and controller errors as root causes in recent incidents.
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Cirrus Service Advisory Prompts Unleaded Fuel Warranty Debate

Cirrus Aircraft has advised its customers to not use GAMI G100UL in its aircraft because it can’t conclusively establish whether the fuel can affect materials in the fuel system. The company issued a service advisory saying that “at this time, Cirrus does not approve the use of GAMI G100UL fuel in Cirrus SR Series airplanes.” It also suggested use of the fuel might void the warranties of the Continental and Lycoming engines it uses. Lycoming later confirmed that G100UL is not on its published list of approved fuels and therefore its use is considered to be outside warranty conditions. However, there are other legal opinions saying that because the fuel is approved by the FAA through an STC then its use cannot void the warranty.

Icon Sold Off For $15.79 Million

A Delaware bankruptcy judge approved the sale of Icon Aircraft to SG Investment America for $15.79 million, a tiny fraction of the investor capital raised to establish the business and get the little amphib into production. When it declared bankruptcy earlier this year it said it was $170 million in debt. It’s not clear if the new owner intends to continue production or simply liquidate the assets. General Atomics CEO Linden Blue submitted a bid that was slightly lower than SG Investment and has agreed to stay on as a back-up in case the other deal doesn’t work out. Among the provisions of the sale is the termination of all employees with the option to hire any or all of them back at the new owner’s discretion.

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