Dubai-based Emirates Investment and Development Company's (Emivest) 80 per cent stake in US-based Sino Swearingen Aircraft Corporation (SSAC) is expected to speed up the delivery of the company's SJ30 aircraft to customers in the Middle East region, Emirates Business has learned.
Under the terms of the deal, Emivest will pump a minimum of $150 million (Dh550m) into the aircraft manufacturer to restart and accelerate production of the SJ30. So far, only two SJ30s have been delivered since the twinjet obtained FAA certification in November 2006.
According to Mike Creed, managing director of Action Aviation, a UK-based aviation company with sole distribution rights for SJ30 light aircraft in 66 countries including in the Middle East, the company has received more than 200 orders for the aircraft from the Middle East. However, it could not make deliveries on time due to production delays.
"SSAC did not have sufficient funds to buy engines, spare parts and other components to manufacture the aircraft," Creed said.
He added that the SJ30 – currently priced at $7.5m – is a unique business jet because there is no comparable product available in the market.
"Our clients don't mind waiting for the SJ30 because it is not in the drawing board of any other aviation company," Creed said.
A statement from the company said it has about 300 orders throughout the world. Talks between SSAC and Emivest have been going on since December.
"Emivest is excited about the takeover with a full order book," said Creed, adding that the aircraft will be displayed at the next edition of Dubai Air Show and at all other major international aviation exhibitions. He said the SJ30 can also be used for emergency medical purposes as its interior is suitable for such a purpose.
Emivest on Friday obtained approval from the United States Committee on Foreign Investment to acquire the 80 per cent stake from the Taiwanese Government in San Antonio, Texas-based SSAC, which makes the world's fastest long-range light jet.
According to industry sources, the Taiwanese Government, as well as SJ30 designer Ed Swearingen and original investor Douglas Jaffe, would hold the remaining 20-per cent share.
An official spokesman of SSAC said in a statement that Buti Saeed Al Ghandi, chairman of Emivest, had obtained the approval from the American authorities.
The company in a statement said: "The acquisition will enable SSAC to initiate full-scale production of its SJ30, which is the world's fastest, longest range and highest flying light jet.
"The SJ30 has a high cruise speed of Mach .83, a range of 2,500 nautical miles and an operating ceiling of 49,000 feet. This is the first acquisition of an American company by Emirates Investment & Development PSC."
SSAC is a partnership between Swearingen Aircraft Company of San Antonio and Sino Aerospace Investment Corporation of Taiwan. The company was established in 1995 and incorporated in 1997. Headquartered at the San Antonio International Airport (KSAT), the aircraft manufacturer currently employs approximately 300 staff at its facilities in San Antonio and Martinsburg, West Virginia.
Recent media reports in the United States and Taiwan suggested that the Taiwan Government had already injected nearly $700m into the company over the 13 years that it has held a majority stake in the company, but a political fallout over this investment stalled the needed additional government funding to get production started in earnest.
Founded in 1997 and headquartered in Dubai, Emirates Investment & Development Company PSC aims to provide credible investment and development services to support the regional economy, and social and environmental progress.
Emivest invests in the manufacturing, horticulture, construction, real estate, education, transportation, telecom and finance sectors.
The perfect business aircraft
The SJ30 is designed to provide a new level of performance in the light business jet class. Powered by two Williams FJ44-2A fanjet engines, it is claimed to have the world's fastest speed and longest range of all light business jets in the under-10,000 kilogram class.
Its top speed is 0.83 Mach, 486 knots or 560mph, and its range is 2,500 nautical miles. The SJ30 has the world's only sea level cabin at 41,000ft and can attain a top flying height of 49,000ft. It is also claimed to operate at the world's lowest cost per mile in its class. It is the world's first light business jet with full transatlantic capability and is also said to be the first light business jet to have the range to fly "anywhere to anywhere" in Europe and "anywhere to anywhere" in the continental US.
All this comes with single pilot certification. The manufacturers claim that performance and technology have come together to create the SJ30 corporate jet as one of the world's most technologically advanced light business jets on the market today.