Buckle up, we're just getting started

[Jim K]

Continental Aerospace Sold To U.S. Private Equity Firm - AvBrief.com

Same equity firm also owns Hartzell.

avbrief.com

Continental is now a "HaRtzEl BrAND". I mean, I was never real comfortable with the Chinese owning them, but this feels like "out of the frying pan, into the fire". I'm a little shocked. Wonder what this means for Cirrus. Will Lycoming be next, or just raise their prices to match?

 

[Capt. Geoffrey Thorpe]

As long as they aren't offering "endless shrimp" on the menu, all will be good. That's the reason Red Lobster (and Joann's, and...) went down.

 

[RyanB]

Yep, here we go. Not a good thing when pricing power for nearly everything firewall forward is controlled by a small number of companies.

 

[kyleb]

Yep, here we go. Not a good thing when pricing power for nearly everything firewall forward is controlled by a small number of companies.

Hartzell has been buying accessory companies left and right. Then piling on huge increases in overhaul costs. The certified guys have little choice in who to send things to. I have some choice when the time comes - often I can move to an uncertified/non-Hartzell starter, mag, or whatever...

 

[schmookeeg]

As the owner of four IO-550s, this is a serious kick in the bonch. Hartzell can gargle my walnuts. That company needs a Mangione.

GA is swinging, rapidly, from eccentric and occasionally amusing travel hobby to a real bummer.

 

[Katamarino]

Just one more reason to get a Deltahawk into my 182.

 

[Bell206]

From my standpoint, I'd be happy that someone still saw the value in buying those companies. Imagine if no one wanted to buy TCM.

 

[ArrowFlyer86]

Sadly this is probably a great purchase for PE. Regulatory enforced customer lock in, relatively price insensitive customers (more like customers don't have a choice), and an industry where a decrease in customer satisfaction can be shrugged off.

 

[Racerx]

Sadly this is probably a great purchase for PE. Regulatory enforced customer lock in, relatively price insensitive customers (more like customers don't have a choice), and an industry where a decrease in customer satisfaction can be shrugged off.

Something something captive market.

 

[Jim K]

Sadly this is probably a great purchase for PE. Regulatory enforced customer lock in, relatively price insensitive customers (more like customers don't have a choice), and an industry where a decrease in customer satisfaction can be shrugged off.

That is literally Arcline's business plan:

Arcline describes itself as a “growth-oriented private equity firm” that “seeks to build the next generation of Industrial Compounders”—”market-leading, non-disruptible industrial platforms designed to consistently grow earnings over decades.”

Non-distruptible, aka regulatorially (is that a word?) captured so we can do whatever we want.

 

[Bell206]

Something something captive market.

True. While on a smaller scale, the legacy helicopter models have gone through a similar shift in OEM and vender changes. Type certificates sold, OEMs not supporting legacy models, etc. its just the nature of the business and always has been. In the case of TCM, I wonder how many engines they produce annually now? TCM was never that diversified like Lycoming when they were picked up by Textron 40 years ago or so.

 

[Rcmutz]

Well…. That explains all the bonanza’s hitting the market now. Between this, the AnP shortage, maybe now is a good time to sell! At my age, I only have 5-10 more years of flying left.

 

[AA5Bman]

Man, Rotax and experimental are looking so good these days. Can we just get a 300+hp turbocharged rotax engine that runs on unleaded and be done with it all ready?

 

[bonefishpete]

Well, well.




The U.S. Department of Defense officially added Duluth, Minnesota-based Cirrus Aircraft to its list of "Chinese military companies" operating in the United States. The designation targets companies affiliated with the Aviation Industry Corporation of China (AVIC), the state-owned Chinese aerospace conglomerate that has owned Cirrus since 2011. [1, 2, 3, 4]

 

[Jim K]

Well, well.

View attachment 152605


The U.S. Department of Defense officially added Duluth, Minnesota-based Cirrus Aircraft to its list of "Chinese military companies" operating in the United States. The designation targets companies affiliated with the Aviation Industry Corporation of China (AVIC), the state-owned Chinese aerospace conglomerate that has owned Cirrus since 2011. [1, 2, 3, 4]

interesting times.

 

[JVerb]

They'll sell more engines and more parts if they drop their prices. Probably increase their margins if they can increase scale, too. But somehow I seriously doubt the math they will operate on will ever be allowed to be calculated in that direction.

 

[cowman]

Man, I'm normally a pretty hardcore free market guy but this private equity stuff is getting out of hand.

 

[hindsight2020]

we still tHriVinTM?

 

[WDD]

Hartzell can gargle my walnuts

That ...........goes into my "Interesting Idioms I've never heard of" list.

 

[Dave Theisen]

That ...........goes into my "Interesting Idioms I've never heard of" list.

Yet, you knew exactly what he meant.

 

[Racerx]

Yet, you knew exactly what he meant.

Hes got walnut trees and makes his own walnut milk... Trying to drum up business

 

[NealRomeoGolf]

Anyone want to buy a nice Seneca?