Oct. 9--Columbia Aircraft's competitors are closely watching developments in Cessna Aircraft's bid to buy the troubled company.
Cessna's purchase of Columbia, based in Bend, Ore., would have a positive impact on the general aviation industry, two of Cessna's competitors said recently. A new owner will give the company new energy.
"It takes a bankrupt company and brings them back into the market," said David Copeland, Mooney Airplane Co.' s vice president for sales and marketing.
Cessna's broad sales and service network would aid Columbia, said John Gauch, Cirrus Design Corp. vice president for sales.
"Competition is not a bad thing," Gauch said. "This definitely raises the bar.
"We feel we're up to the challenge."
Cirrus is interested in Cessna's long-term plans for the company, he said.
"We know Cessna won't stand still -- nor will Cirrus stand still," Gauch said.
Cessna signed a letter of intent to purchase Columbia -- which makes high-performance, single-engine, piston-engine aircraft -- late last month, immediately after Columbia filed for bankruptcy protection.
The sale must be approved by the bankruptcy court, and there are other bidders for the company.
Cirrus, based in Duluth, Minn., is the second-largest builder of single-engine piston aircraft. Last year, it delivered 721 airplanes compared with 865 by Cessna.
Columbia, meanwhile, delivered 185 of its two models of aircraft -- the Columbia 350 and 400.
Cirrus' goal is to "be a significant rival for Cessna," said Cirrus co-founder Alan Klapmeier.
Cessna chief executive Jack Pelton said Cessna plans to retain Columbia's plant and its work force in Bend and continue production of its existing lines of aircraft. Cessna would also make significant investments in Columbia, Pelton said.
Mooney and Cirrus say they will continue on their own path.
"We're going to continue to drive and focus our market and deliver the highest quality, fastest airplane in the business," said Mooney's Copeland.
Reach Molly McMillin at 316-269-6708 or [email protected] [mailto:[email protected]]
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