It’s Still Slow Going at Sino Swearingen

 - October 25, 2007, 11:04 AM

After last month’s announcement that Sino Swearingen Aircraft is being taken over by Action Aviation Investors (AAI), production activity at the San Antonio-based manufacturer has yet to pick up. So far, it has delivered only two SJ30s since the airplane received FAA certification two years ago; the latest delivery occurred at the NBAA Convention. AAI is buying a controlling interest in Sino Swearingen and pledged to provide funds to help the company ramp up production to meet an order backlog of 274 SJ30s. News reports claim that the Taiwan government, which is selling its majority share to AAI, has already spent about $700 million on the SJ30 program. Richard Aboulafia, vice president of analysis at consulting firm Teal Group, isn’t sure the program will make it, even with AAI’s investment. “Can the SJ30 be salvaged?” he asked. “Not by the current owners, unless they have several hundred million dollars they don’t mind risking. At least one established manufacturer–Bombardier–could use an aircraft in this class, but that’s an outside chance, at best.”