StandardAero said it will cease operations and close Associated Air Center, the company’s large transport category VIP completions center at its Dallas Love Field facilities, at the end of 2017.
“After a thorough analysis, StandardAero has concluded that the business case for continuing to operate AAC is no longer an economically viable option for the company and its investors,” the company said in a statement.
Work volumes, both now and projected in the future, do not support the fixed costs required to operate the facility, it said.
“In addition, the limited pipeline for new business opportunities, excess industry capacity and slowing demands in the VVIP aircraft marketplace have all contributed to this decision,” the company said. “The decision also aligns with the company’s near-term growth strategy and actions to strengthen StandardAero’s portfolio by expanding its core engine MRO capabilities.’
Between now and the end of the year, StandardAero will help employees find positions in other StandardAero’s business units and provide them with a variety of company-funded redeployment and outplacement assistance and services.
In the meantime, Associated Air Center will operate as business as usual and will complete its obligations on current contracts, existing warranties and complete committed projects for customers.
It will keep as many employees as necessary to support all projects until they have been completed, StandardAero said.
StandardAero, based in Scottsdale, Arizona, is owned by Veritas Capital, a private equity firm based in New York City.