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Old 29th Mar 2005, 14:33
  #112 (permalink)  
diethelm
 
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It should be no surprise to anyone in the industry that MD lacks the liquidity to support its products. It is common knowledge that the subcontractors which make the parts to support MD products are not being paid on a timely basis. Further, the basis for this statement is not only supported by the marketplace, but have been supported by public filings with the United States Securities and Exchange Commission by Kaman. These are public documents.

With respect to 500's, there are a few parts which are difficult to attain (heads, verticals, sheet metal) but the balance of parts can be found in the marketplace as there are over 3,000 still flying and over 5,000 manufactured and a volume of aircraft necessary to support PMA. With respect to 520's, 600's and 900's, it is clearly much worse as there is not the volume of aircraft to pick parts from, nor is there necessary volume to justify PMA. Although some people, like Cyclic Hotline, beleive 500's are junk, I personally like them.

New parts in sustainable volumes will not be available from MD to the civilian market until MD is recapitalized which will in my opinion take a bankruptcy. Absent unsecured creditors forcing an involuntary bankruptcy (costs about $1,000), it is unlikely MD will file on its own.

All operators of MD products should accept the situation and plan accordingly.
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