Mooney Now Prepares to Restart Production Line
LONG BEACH, Calif., Apr 30, 2002 /PRNewswire-FirstCall via COMTEX/ -- Advanced
Aerodynamics & Structures, Inc. (OTC Bulletin Board: AASI) announced today that
it had completed the acquisition of the assets of Money Aircraft Company. The
company has also changed its name to Mooney Aerospace Group Ltd.
"The closing of the Mooney asset purchase now establishes our company as a major
player in the General Aviation industry," said Roy Norris, Chairman and CEO of
AASI. "Mooney's top-of-the-line aircraft models have been considered the
pinnacle for most private aircraft owners for more than a half century. Now, we
are positioned to be the low-cost leader in the industry. We plan to reduce
manufacturing costs and increase profitability as a result of entirely new
general aviation manufacturing techniques. Our plan calls for us to achieve
profitability by early 2003."
The company plans to deliver approximately 20 aircraft over the next 8 months
and have Mooney back in full production of 100 units per year by the end of the
year. Mooney, known throughout the world over as the producer of the highest
performance single engine piston aircraft available, has been building aircraft
for over fifty years in its Kerrville, Texas, manufacturing facility. There are
over 10,000 Mooney aircraft in operation around the world today.
Mooney has extremely low manufacturing costs at its Kerrville facility. Texas is
a right to work state and Mooney has never had a union. Additionally, there are
no other large aerospace manufacturers close by to compete for Kerrville's
highly experienced work force.
AASI has transitioned itself from a purely development company to a major
general aviation aircraft manufacturer overnight. "But this is just the first
step in a fast moving process," Norris added. "I have assembled an enviable team
of seasoned aviation professionals including Pete Larson, former Chief Financial
Officer of Cessna Aircraft, and Dale Ruhmel, former head of Advanced Design and
Technical Services at Cessna, along with Nelson Happy, a prominent general
aviation attorney and mergers and acquisition specialist who previously served
as CEO of Flight International."
Mr. Norris was previously President of Raytheon Aircraft (formerly Beech
Aircraft Co.) and a Senior VP at both Gulfstream and Cessna Aircraft.
Norris added, "We have the expertise in place and plan to acquire at least two
other major general aviation product lines that are complementary to the Mooney
aircraft models in the near future. We are in serious negotiations with a major
producer of single and twin engine piston aircraft in the six passenger size
range and with Century Aerospace Corporation for the rights to manufacture the
Century Jet -- one of the exciting new micro-jet models under development."
When asked what brought him out of an early retirement to lead the Company's
aggressive rebirth, Norris said, "Now is a unique time in General Aviation. With
the advent of legal reforms that have reduced exposure to product's liability
claims that so plagued the industry in the 1980's, along with the tremendous
demand for alternatives to airline travel that is being created by the untenable
conditions of airline travel since the 9/11 disaster, General Aviation offers
the ONLY alternative for today's business traveler. Small to medium sized
companies that cannot afford an expensive business jet are turning to small
General Aviation aircraft for their travel needs. This trend is readily apparent
in the 30% annual growth rate in General Aviation aircraft sales over the last
four years and I believe it will accelerate even further."
Buying up the very best models of General Aviation aircraft at a time when the
economy has made them attractive acquisition candidates, coupled with the
development of exciting new products such as the Century Jet, is a formula
Norris has toyed with for a number of years. "But we had to wait for the correct
timing. The increased demand for small general aviation aircraft that has
resulted from the abysmal situation in airline travel today was just the
opportunity I was waiting for", Norris said.
Norris and his team are no strangers to the General Aviation industry. He was a
key player in Cessna Aircraft's rapid growth in sales and profitability through
the introduction of six new models during his tenure at Cessna and growth of
international sales from 17% to 50% of the company's business. Norris and Pete
Larson, CFO, were largely responsible for Cessna's turnaround from a loss to a
substantial operating profit. Norris also was instrumental in increasing
Raytheon Aircraft's sales and earnings by 30% during his tenure there. Dale
Ruhmel, Executive VP of Operations, has been involved with over 30 general
aviation aircraft certifications including such industry winners as the Cessna
Citation I, II, and III, and the Cessna 404 and 414 piston models. He was also
one of the principal designers of the DC-10, and will focus on the Century Jet
program after acquisition.
"My plan is to build a major General Aviation company serving individuals and
small to medium business which have largely been ignored by the industry's rush
to large expensive jet models," added Norris. "I know how to do that because we
did it in the jet business at Cessna and Raytheon. The airline crisis has
created a wonderful opportunity to serve an ignored market. We will do that by
acquiring and manufacturing the best aircraft models the industry has to offer
and then compliment those products with exciting new models. Mooney was the
first step but there will be much more to come."
For further information, please contact:
The Mooney Aerospace Group, Ltd., formerly Advanced Aerodynamics & Structures
Inc., Long Beach, Investor Relations Manager, 562/938-8618, IR@aasiaircraft.com.
For product or corporate information: Nelson Happy, Executive Vice President,
562/938-8618, nhappy@aasiaircraft.com . Additional information is available at
the Company's website: www.aasiaircraft.com .
For More Information, Contact: Roy Norris of Advanced Aerodynamics & Structures,
Inc., +1-562-938-8618, rnorris@aasiaircraft.com; or Al Eidson, +1-816-474-0747,
al@eidson-co.com, or Mathew Henderson, CEOcast, Inc. for AASI, +1-212-732-4300,
mhenderson@ceocast.com
SOURCE Advanced Aerodynamics & Structures, Inc.
CONTACT: Roy Norris of Advanced Aerodynamics & Structures, Inc.,
+1-562-938-8618, rnorris@aasiaircraft.com; or Al Eidson, +1-816-474-0747,
al@eidson-co.com, or Mathew Henderson, CEOcast, Inc. for AASI,
+1-212-732-4300, mhenderson@ceocast.com
URL: aasiaircraft.com |
