Announcement of the sale of Continental Aerospace Technologies by a Chinese company to American private equity firm Arcline came as the Pentagon included Continental on a list of China-related defense companies that do business in the U.S. The Pentagon is required by Congress to create that list and it appears that will disqualify the named businesses from getting defense contracts. Continental and Cirrus Design both make the list and are part of the Aviation Industry Corporation of China (AVIC), a state-owned and directed company, which builds everything from drones to fifth-generation fighters. The Continental sale was announced on Monday and so far neither Continental nor Arcline have commented beyond Arcline’s press release. Arcline has not responded to AvBrief’s request for an interview. We’ve received a lot of comments on our earlier story, many of them expressing concern that Arcline will increase prices for engines and parts but also some cheering Continental’s return to American ownership.
Meanwhile, Cirrus Design, the other major aviation company on the Pentagon list, has come under fire from Rep. Pat Harrigan (R-N.C.) for its Chinese ownership. Cirrus was bought by AVIC in 2011 and the sale went through all the government reviews, including the Defense Department, and was approved. In fact, the Defense Department bought a fleet of SR20s for primary flight training and the Air Force Academy in Colorado and those aircraft are currently being eyed for a performance upgrade with the aftermarket addition of turbochargers to make them more useful in the rarified air of the mountain state. It’s not clear if the Pentagon designation will affect that program.
This is good news. Let’s hope that Cirrus will also be repatriated. In 2011 the Obama regime was in power, famous for allowing the Communist Chinese to steal or acquire important US aerospace assets. Given the Communist Chinese’ increasing persecution of Christians, all American businesses controlled by their government should be cut off from any form of US government funding and encouraged to shuck their Chinese ownership. When China finally decides to join the civilized world things might be different.
Well said History 101!
Hey guys…or gals. Quit please! Quit! No last word. This is just the wrong place. Don’t ruin it.
Couldn’t agree more. Stick to the topic at hand, folks.
A list of Arcline investors might reveal some recent changes and is probably worth investigating. Unless we assume our leaders do not partake in trading based on non-public information.
It’s great to hear that ownership is coming back to the US. The United States remains the best country in the world for general aviation, but we still have work to do to ensure the industry remains healthy and accessible.
One area that deserves attention is the FAA’s certification framework. Many regulations were created decades ago and may no longer reflect today’s technology, manufacturing methods, or operational realities. Revisiting and modernizing some of these requirements could significantly reduce costs, and help companies like Cirrus.
Certification alone does not necessarily make an aircraft safer, especially in the Part 91 environment. The RV community is a good example of how well-designed experimental aircraft can achieve excellent safety and reliability records.
Good to hear Continental is coming back to the US, and hope that Cirrus follows suit.
But government criticism because they went to China in the first place, regardless of the party in power at the time, is being rather hypocritical. The companies were sold to Chinese firms because there were no American buyers. US investors should take the blame for letting it happen.