Bulletin E-Edition:
New FAA policy may hurt Lancair, Epic
Sen. Wyden calls move to halt some evaluations of kit planes a ‘hammer blow’ to area economy
By Keith Chu and Peter Sachs / The Bulletin
Published: March 05. 2008 4:00AM PSTU.S. Sen Ron Wyden, D-Ore., said the FAA’s decision to stop “coaurtesy evaluations” essential to marketing homebuilt planes could cost Central Oregon’s kit plane manufacturers jobs — though Epic and Lancair said Tuesday neither was planning layoffs.
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WASHINGTON — Central Oregon kit plane manufacturers said they could see a sharp drop in sales of their new models, thanks to a Federal Aviation Administration decision that U.S. Sen. Ron Wyden, D-Ore., called a potential “hammer blow” to the local economy.
Wyden and kit plane manufacturers reacted to an FAA announcement last month that the agency would stop performing “courtesy evaluations” of new homebuilt plane models until October. Those evaluations are essential to marketing planes because they assure aircraft buyers the FAA will consider the airplanes worthy of flying if they’re built according to the manufacturer’s instructions. Manufacturers can still sell their kit planes without an evaluation, but there’s no assurance the aircraft will be deemed airworthy.
According to FAA records, the decision will affect three homebuilt plane models produced in Deschutes County: Redmond-based Lancair’s Evolution and Bend-based Epic Aircraft’s Escape and Victory.
The planes Epic and Lancair sell come as a collection of parts that buyers assemble. Many opt to use the companies’ factories, which have specialized tools and equipment. The advanced planes require a high degree of expertise to assemble, said Joe Bartels, the CEO of Lancair. Being able to build the planes on-site, with knowledgeeable people nearby who can help, adds to the builder’s confidence and helps ensure they build their planes correctly, Bartels said.
Part of the FAA’s concern is that manufacturers are doing too much of the work. Owners are allowed to do repairs on their planes.
But the FAA is concerned if owners pass off the work to others, they won’t have the experience needed to repair their planes.
Bartels called it ridiculous that buyers should be expected to make the carbon-fiber plane parts his company sells, since doing so requires an array of specialized machinery.
The FAA’s move could significantly dent the homebuilt industry for at least the rest of the year as buyers shy away from the uncertainty of whether new planes, like the Lancair Evolution, would get the OK to fly once they’re built, Bartels said.
“What they were doing could very well create great a substantial economic hardship (in the homebuilt industry), not only on Lancair and Epic,” Bartels said.
Citing those concerns, Wyden asked the agency to reconsider its decision, in a letter to the FAA scheduled to be sent this morning. In an interview with The Bulletin on Tuesday evening, Wyden said the FAA’s action could cost Central Oregon jobs.
“Its clear that at a time when the Central Oregon economy is hurting like this, to have the FAA propose rules that throw hundreds of Oregonians out of good paying manufacturing jobs with this proposal is just unacceptable,” Wyden said. “We’re calling for a time out so that there can be some further opportunity to look at this issue and make sure there aren’t a whole lot of new hammer blows on the Central Oregon economy.”
Officials from both Lancair and Epic said Tuesday that neither company was planning to lay off workers following the FAA’s decision. Lancair employs about 65 people, while Epic has about 130 employees, according to previous Bulletin reports.
Dave Hice, executive general manager at Epic Aircraft, said Epic is not considering layoffs as a result of the decision. Hice referred other questions to Rick Schramek, Epic’s CEO. Schramek sat on the committee that advised the FAA on its new policy, but was traveling and could not be reached Tuesday.
In its report, the FAA said the former courtesy evaluation process wasn’t standardized, and that inspectors need more training before they OK complex planes.
The agency plans to release a draft of its new rules sometime this summer, with the final decision expected in October.
Last month’s report did not raise concerns about the safety of homebuilt aircraft.
The Lancair Evolution, a four-seat plane that will fly at up to 385 mph, is ready for its courtesy inspection. Bartels said he sent paperwork to the FAA on Jan. 31, but with the inspection moratorium in place, he’s unsure when his company’s plane will get the review it needs from the FAA.
But Lancair isn’t considering layoffs as it waits on the Evolution and it has the money to keep going, Bartels said. Seven of its other models are already on the approved list.
Wyden said he’s concerned the FAA doesn’t want to accept technological advancements that allow Lancair and Epic to sell sophisticated planes as homebuilt models.
Bartels agreed.
“What the FAA has done is looked over where the market is going, saw they were not in control and (it) is saying, ‘Hey, we’re going to bring these guys back 50 years.’”
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