Although it hasn’t released the final report to the public, the FAA’s unleaded avgas transition rulemaking committee (UAT-ARC) will recommend a fuel-approvals process stretching out as long as 11 years and will be asking Congress for at least $60 million to fund the project, plus as much as $13 million from the industry. “The snowball is starting to turn down the hill,” said Lycoming General Manager Michael Kraft “What it does is to give anyone coming to market with a fuel a risk-management plan. Nobody’s willing to make the investment if they can’t see the return.” Although the ARC’s foreseeable timeline is 11 years, that doesn’t necessarily mean it will take that long to see approved fuels in the field, but only that this might be the maximum window for any realistic fuel candidates to come forth.
Last year, Hawker lost over $600 million, but the company entered agreements to eliminate $2.5 billion in debt and secure financing that will allow it to pay its employees for the short term. “Restructuring our balance sheet and recapitalizing the company in partnership with our debt holders will dramatically improve Hawker Beechcraft’s ability to compete in a rapidly changing environment,” CEO Robert Miller said in a statement. The company says it will continue to operate “in the normal course of business” and fill all orders for available products.
