One Aviation Earns CFIUS Approval for Sale

 - March 18, 2020, 10:58 AM

Albuquerque, New Mexico-based One Aviation recently cleared a significant hurdle in its plan to emerge from Chapter 11 bankruptcy, though when that emergence will occur remains up in the air. The  Committee on Foreign Investment in the United States (CFIUS) this month provided clearance for Citiking International US to acquire One Aviation, according to the law firm of Paul Hastings that represented the company in the matter.

Citiking, a U.S. entity backed by Chinese investors, has financially supported One Aviation’s service operations for Eclipse 500 and 550 very light jets since the company filed for bankruptcy in October 2018. At that time, all parties aimed for an expedited trip through Chapter 11; however, those hopes were soon dashed by several factors.

"The bankruptcy process is unbelievably difficult to navigate," One Aviation CEO Alan Klapmeier told AIN. "The process for certifying an aircraft is much more reasonable; after this experience, I'm really looking forward to working with the FAA again."

The company received court approval for its exit plan last September. Once clear of bankruptcy, One Aviation aims to produce the larger Eclipse 700 featuring an expanded cabin, Williams International FJ33-5A-12 turbofan engines, and Garmin G3000-derived avionics.

While Klapmeier emphasized One Aviation is progressing toward exiting Chapter 11, the Covid-19 crisis presents another impediment. "People don't want to travel right now to meetings about the next step of that process," he said. “For those who do wish to travel [in this environment], though, general aviation is clearly the best way to do it."