AASI announced on February 8 that it will acquire Mooney Aircraft Corporation (MAC). Mooney, which has produced more than I 0,000 aircraft since 1947, has been in Chapter 11 bankruptcy since July 2001.
The new company will be called Mooney Performance Aircraft Company (MPAC) and will use Mooney’s existing line–Eagle2, Ovation2, and Bravo–as a “step-up” aircraft to the JetCruzer 500 turboprop, which will likely be renamed the Mooney XP. Plans are for MPAC to build its aircraft at Mooney’s existing plant in Kerrville. However, AASI’s facility in Long Beach, California will be used as a sales service and delivery center.
The U.S. Bankruptcy Court in San Antonio approved an operating agreement on February 6 that allows AASI to manage Mooney until a reorganization plan is prepared for approval.
MPAC anticipates bringing back as many assembly-line personnel as possible, but management will be entirely restructured. Job prospects are expected to be “very good” in Kerrville. Meanwhile, at the AASI’s facility on California’s Long Beach Airport, most of the work force will be eliminated. Layoffs have already reduced the number of employees significantly.
The Mooney purchase is costing AASI $18 million and whose purchase is for Congress Financial Corp.’s position as senior secured creditor for Mooney Aircraft Corp.
Efforts will concentrate on the JetCruzer 500/Mooney XP production–a 345-mph aircraft. The target market will be high-net-worth individuals such as company CEOs who are considering a personal aircraft for the first time. It is expected that the Mooney XP will sell for between $1 .2 million and $1 .5 million. A potential is there for 1,000 units per year.
Expectations are for the Mooney piston production to return to 300 planes per year in three to four years. Additionally, a projected reduction in the average price on the Mooney piston model by $70,000 seems feasible.
