vfw614
Posts: 3168
Joined: Mon Dec 10, 2001 12:34 am

Manufacturer That Bought Back Their Own Products?

Tue Jul 26, 2005 12:21 am

What aircraft manufacturer have bought back their own products from operators in order to be able to shut down the programme and discontinue after-sales-support ?

When I read about the purchase-back exercise of Beechcraft regarding the Starship, I remembered that VFW did the same with their 614 jet in the late 1970s. They bought the aicraft back and scrapped them just to get rid of the whole programme.

Have their been other examples ? Must be heartbreaking for engineers, designers etc. noto nly to find out that their product is not selling well, but that their very own employer buys the aircraft back to reduce them to scrap metal.
 
Planesmart
Posts: 1734
Joined: Sun Dec 05, 2004 3:18 am

RE: Manufacturer That Bought Back Their Own Products?

Tue Jul 26, 2005 6:42 am

Quoting Vfw614 (Thread starter):
What aircraft manufacturer have bought back their own products from operators in order to be able to shut down the programme and discontinue after-sales-support ?

It was a very specialised part of product support, namely product liability. Cover has to be maintained for the life of the aircraft. The insurer requires the manufacturer to have a proactive maintenance (liability minimisation) programme with operators.

The premium and associated costs would have exceeded the sale value of the original aircraft.
 
vfw614
Posts: 3168
Joined: Mon Dec 10, 2001 12:34 am

RE: Manufacturer That Bought Back Their Own Products?

Tue Jul 26, 2005 6:47 am

My understanding regarding the VFW614 is that it simply had to do with after-sales-support of both the airframe manufacturer (VFW) and the engine maker (Rolls-Royce). They offered the only two airlines that operated the aircraft - Cimber Air and Air Alsace - a very good price both could not resist, took the aircraft back and scrapped them in order nobody else would operate them.
 
aeroweanie
Posts: 1577
Joined: Fri Dec 03, 2004 9:33 pm

RE: Manufacturer That Bought Back Their Own Products?

Tue Jul 26, 2005 2:04 pm

Cessna did buy back all the Skyhook helicopters and scrap them.

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