Chinese firm to buy Hawker Beechcraft for $1.79B
As reported by ABC News via the Associated Press and other outlets, a Chinese company, Superior Aviation Beijing Co., Ltd., will purchase the struggling aircraft maker Hawker Beechcraft for $1.79B, saving perhaps thousands of jobs in the American midwest (primarily Arkansas and Kansas). In addition to saving jobs, the deal will help the company to emerge from Chapter 11 bankruptcy.
However the deal isn’t completely finalized. If it falls through the company still plans to continue with bankruptcy and re-organization, eventually hoping to emerge as an independent entity.
The market for aircraft in China has been growing steadily. Although Chinese commercial aviation is primarily controlled by three state-owned organizations, recently the government has set new policies in place that would encourage private investment in civil aviation. It is anticipated that the demand for air transport in China will grow by 10% annually, compared to 2% in the United States.