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Lancair announces restructuringLancair announces restructuring

Many assets for sale; Evolution continues in new companyMany assets for sale; Evolution continues in new company

Lancair International Inc. is reorganizing. The company is seeking to sell all assets, designs, intellectual property, and its ongoing support business for all no-longer-in-production Lancair aircraft kit models, Kevin Eldredge, Lancair’s director of business development, said at EAA AirVenture. The company announced its intention to sell the Lancair assets on July 7. It will continue to produce its Evolution models under a new corporate entity.
Lancair Evolution
Lancair Evolution

“We are in the midst of restructuring the company,” Eldredge said, noting that the company has a 35-year history. “Over that time our customer base has changed dramatically.” The Evolution turbine- and piston-engine airplanes have become the company’s primary product, he added.

 

“When you grow a company quickly, you need a lot of cash and resources,” he said. Eldredge said 63 Evolution aircraft were flying, and 78 have been sold. “We produce one aircraft every three weeks—that could be turbine or piston.” The company doesn’t want to accelerate production too quickly, but a two-week production cycle is being considered.

Sales of the previous models stopped, but there’s a strong support business that the company doesn’t have time to develop, Eldredge explained. “The reality is, you’ve got to constantly be innovating—but you also have to be evaluating where the market is. There’s nobody that can compare with a pressurized, four-place Evolution. We’re focused on that right now.”

Lancair International will be liquidated, with Evolution production shifting to a new corporation, Evolution Aircraft Co. It will remain at Lancair’s facility in Redmond, Oregon.

“What we’re looking for is someone to buy the Lancair brand and assets,” Eldredge said. The assets include molds, tooling, and parts, as well as the intellectual property. He said he will not break up the assets. Ten percent of the current company’s revenue comes from supporting the out-of-production designs. “We aren’t pursuing that business. We’re keeping up.”

While there has been a little interest from companies outside the United States, Eldredge did not seem impressed by those conversations. He remains focused on finding the right buyer for the Lancair assets. “The most important thing is the buyer. It’s a big deal to us.”

More than 2,000 Lancair 320/360, IV, IV-P, ES, and Legacy aircraft kits have been sold around the world, and more than 1,200 completed aircraft have been registered.

Mike Collins

Mike Collins

Technical Editor
Mike Collins has worked for AOPA’s media network since 1994. He holds a private pilot certificate with an instrument rating.
Topics: EAA AirVenture, Financial

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