Tamarack Aerospace: Plan approved, good news in uncertain times
The Plan of Reorganization filed by Tamarack Aerospace Group was confirmed by the US District Court for Eastern Washington on March 2nd clearing the way for the company to begin the process to emerge from its voluntary bankruptcy. In uncertain times with industries grappling with the global pandemic of Covid-19, Tamarack President Jacob Klinginsmith appears quietly confident his company has confirmed a blueprint for its re-emergence.
Klinginsmith spoke to Corporate Jet Investor about the Plan of Reorganization, where he sees Tamarack growing in the future and how the firm’s Active Winglet’s could well be the key to success in getting there. But first we began with the impact of Covid-19 – now and in the future.
Corporate Jet Investor: Has Covid-19 impacted you Tamarack? Do you foresee an impact on yourselves or the market?
Jacob Klinginsmith: We care very much about the safety of our employees, our community and beyond and we are taking the expected precautions concerning Covid-19. Staff are working remotely when possible, we are making sure we have no interruptions in our supply-chain for parts or vendors. We believe our unique Active Winglet technology, with up to a dramatic 33% fuel savings for many aircraft, will make even more sense to buyers who will now be fighting cashflow problems and need to have a fuel savings and safety-focused technology like ours. Sustainability in aviation is no longer a nice to have but a must-have and there is no more dramatic sustainable aviation technology out there than Tamarack Active Winglets.
CJI: How has the plan been funded?
JK: Tamarack Aerospace is a privately held corporation with a group of dedicated and trusting investors who appreciate our prudently run business, and satisfied customers. Active Winglet sales have been the basis of our financial recovery. We just performed our 100th Active Winglet installation in February; and we are growing our business -–including a growing legion, over 20-strong now, of Tamarack authorised service and installation centres worldwide.
CJI: What is the plan for the near future?
JK: Now that our voluntary bankruptcy plan is approved, we’re moving ahead with hiring staff and continue installing Active Winglets on more aircraft in the US. There is no technology like the Active Winglets available anywhere that can save up to 33%or more fuel every flight, reduce noise pollution and improve safety and ride comfort. We intend to establish even more service centres in the US and internationally having increased our number of service centres worldwide recently to nearly two dozen.
Tamarack Active Winglets are turning blue skies greener. We are aggressively focusing our brand on the dramatic green and sustainability benefits our product brings to aviation. The US Congress, military and commercial carriers and OEMs and leading aviation associations are showing intense interest in our technology and we see opportunities for all kinds of airframes.
CJI: Where do you hope to see Tamarack Aerospace in five years?
JK: Our hopes for the next five years are turning into reality. We hope to capture a significant part of the aviation market and we have no competition.
The court just approved the plan to end our voluntary bankruptcy and we have the financial resources and new client interest to grow our business exponentially in the next five years. Our patented Active Winglets react within a fraction of a second to turbulence, instantly smoothing the flight, making it a safer ride and allowing up to a 33% fuel savings on many business airframes while providing about half that benefit for most larger aircraft. The outdated passive winglets you see on most aircraft now only brag about fuel savings of 4% or so without most of our other important benefits.
CJI: How much do you hope to see the Active Winglets fleet expand?
JK: There is no limit. We have a family of more than 100 Cessna CitationJets with Active Winglets installed in the air right now, and more installations in progress. As mentioned, the US Congress, the military and commercial carrier industry, OEMs and aviation associations are showing interest in our technology.
The ROI [Return on Investment] of the Active Winglets supports our growth plans because now is the time for aviation to increase its scrutiny of cost savings and good investments. For example, the aircraft valuation company VREF has put a 100% return on the investment in Active Winglets. This is supported by feedback from Tamarack customers who have told us that the value of their aircraft increased with the addition of the Active Winglets.
CJI: How will an aircraft owner with Tamarack Active Winglets benefit from the technology?
JK: Our Cessna CitationJet owners have reported a fuel savings of up to 33% with Active Winglets. One Tamarack customer who logs an average of 200 flight hours per year has reported an annual savings of $41,600 in fuel costs alone. Using this example and based on 200 hours of annual flying, the investment in Tamarack Active Winglets is recouped in fuel savings alone in approximately 3.6 years’ time. For 400 hours of annual flying, the investment is recouped in just 1.3 years. This isn’t factoring in the benefits to the planet for lower C02 emissions.
Finally, and possibly the most important, Active Winglets improve safety via much better climb gradients, greater flight stability, and a smoother ride for passengers. When determining ROI, owners need to account for the value of Active Winglets with the same calculations they would use for another purchase that made flying safer, such as a bigger oxygen tank or upgraded avionics. But then also factor in being able to take off with an additional 500 to 1,000 lbs in payload, being able to turn a three-hour flight into a four-hour flight using the same amount of fuel, landing with extra fuel as a safety margin or avoiding a fuel stop all together.