Cirrus Aircraft

This article is about the aircraft manufacturer. For other uses, see Cirrus.
Cirrus Aircraft
Subsidiary
Industry Aerospace
Founded 1984
Founders Alan & Dale Klapmeier
Headquarters Duluth, Minnesota, United States
Key people
 Dale Klapmeier (Co-Founder & CEO)
Patrick Waddick (President, Innovation & Operations, Duluth division)
Todd Simmons (President, Customer Experience, Knoxville division)[1]
Don McIsaac (Executive Vice President & CFO)
Judi Eltgroth (Senior Vice President, HR)[2]
Products Light aircraft
Owner China Aviation Industry General Aircraft (CAIGA)
Number of employees
 1,000+[3]
Parent Aviation Industry Corporation of China, which is owned by the Government of the People's Republic of China.
Website www.cirrusaircraft.com

The Cirrus Aircraft Corporation (formally Cirrus Design Corporation[4]) is an aircraft manufacturer that was founded in 1984 by Alan and Dale Klapmeier to produce the VK-30 kit aircraft. The company headquarters is located in Duluth, Minnesota, United States. As of June 2015, Cirrus had delivered over 6,000 aircraft in 16 years of production.[5][6][7]

The company is owned by China Aviation Industry General Aircraft (CAIGA), itself owned by Aviation Industry Corporation of China (AVIC), which is in turn wholly owned by the Government of the People's Republic of China.[8][9]

Cirrus markets several versions of its three certificated models, the SR20, SR22 and SR22T. It was planning to market a light-sport aircraft, the Cirrus SR Sport, but suspended the project in 2009 due to costs and lack of market demand. This has since been cancelled.

The Cirrus Vision SF50 single-engine jet is currently under development.[10]

Facilities

Cirrus Aircraft has its headquarters and main manufacturing facility in Duluth, Minnesota. An additional manufacturing facility, which produces the composite components for the planes, is located in Grand Forks, North Dakota. The Grand Forks facility is owned by the city of Grand Forks and leased to the company.[11]

On 27 December 2007 the company secured a lease for former Northwest Airlines hangar at Duluth International Airport. The 189,000-square-foot (17,600 m2) building was to be used for construction of its new Cirrus Jet.[12] Cirrus canceled the lease in 2009 during the height of the Great Recession.[13]

In February 2015 the City of Duluth had agreed to put up US$6M and had asked the state contribute the remaining US$4M to build a US$10M factory on the Duluth Airport dedicated to the production of SF50 Vision jets. The city would then try to recoup its costs for the facility from lease payments by Cirrus over time.[14]

On 6 May 2015 Cirrus announced that it will establish a new facility campus called the "Vision Center" in Knoxville, Tennessee on the city's McGhee Tyson Airport. The facility will focus on all customer interactions including training, maintenance & repair, personalization and deliveries for the Vision Jet and SR-series. The center is slated to open by the middle of 2016. All manufacturing operations were said to remain in Duluth and Grand Forks.[15][16]

Management

Co-founder Alan Klapmeier served as President from 1984 until January 2006, and Chief Executive Officer (CEO) from 1984 until February 2009.

On 19 January 2006 Cirrus made public that Chief Operating Officer (COO) David Coleal had been named President.[17]

On 18 December 2008 the company announced that COO Brent Wouters would be appointed President and CEO effective 1 February 2009. David Coleal was no longer with the company[18] and Alan Klapmeier continued as Chairman of the board, with Dale Klapmeier as Vice-Chairman.[19]

On 1 August 2009 Cirrus Aircraft CEO Brent Wouters announced that Alan Klapmeier's contract as Chairman of the Board would not be renewed when it expired at the end of that month.[20] Alan left Cirrus on 21 August 2009.[21]

On 1 September 2011 the company announced that Co-Founder Dale Klapmeier has been named CEO and that Brent Wouters, previously President and CEO, is no longer with the company.[22][23]

On 12 March 2013 Patrick Waddick was named President, adding this to his COO position.[24]

In May 2015 Cirrus reported that Chief Customer Officer (CCO) Todd Simmons will lead the new Vision Center in Knoxville, Tennessee, where all customer activities and operations for the company will take place.[25]

History

1980s

A Cirrus VK-30 kit aircraft
A Cirrus-designed Israviation ST-50, at the Paris Air Show in 1997

In 1984, Cirrus Aircraft's founders, brothers Alan and Dale Klapmeier, along with spouses Jeff and Sally Viken, started developing the Cirrus VK-30 as a homebuilt aircraft in the basement of the Klapmeiers' parents' barn in rural Baraboo, Wisconsin.[26] After a few years in the design phase, the brothers borrowed money to move the project to their own factory on the Baraboo airport, where they began flight testing.[27][28] The first flight of the VK-30 was on 11 February 1988 and kit deliveries commenced shortly thereafter.[29]

1990s

Cirrus Aircraft designed the ST-50 under contract to Israeli aircraft manufacturer IsrAviation. The aircraft was configured like the Cirrus VK-30, but was powered by a Pratt & Whitney Canada PT6-135 turboprop engine, in place of the piston engine used in the VK-30. The prototype was first flown on December 7, 1994, by Norman E. Howell.[30] That same year, the Klapmeier brothers moved company headquarters from southern Wisconsin to a much larger facility in Duluth, Minnesota.[27][31]

In August 1996, Cirrus announced plans to build a plant at the Grand Forks International Airport in Grand Forks, North Dakota.[27]

By the middle of the decade the company had discontinued the VK-30 and began development of the Cirrus SR20 which was type certified in October, 1998.[32] This was followed by customer deliveries of the SR20 beginning in July, 1999.

2000s

Cirrus SR20 landing

In June 2000, the company received an FAA Production Certificate for its SR20 aircraft.[33] In November the same year, Cirrus received a type certificate for its next model, the SR22.[32]

In August 2001, Cirrus sold 58% of the company for $100 million to Crescent Capital, the US arm of the First Islamic Investment Bank of Bahrain (now called Arcapita).[34][26][35][36]

In July 2002, the company announced that it would collaborate with the University of North Dakota Aerospace Foundation to provide a new Cirrus Customer Training program.[37] In February the following year, Cirrus delivered the industry's first-ever all glass cockpit light aircraft.[37][38]

In June 2004, Cirrus received type certification for the SR20 from the European Aviation Safety Agency (EASA).[39] That same year, Cirrus accomplished record-breaking sales, up 69% over the previous year. The SR22 became the world's best-selling single-engine aircraft.[37]

Cirrus entered the civilian flight-training fleet market with SR20 deliveries to Sweden's Lund University in January 2005,[40] followed by University of North Dakota and Western Michigan University.[41][42]

Cirrus SR22 front view

In 2006, the company delivered 721 aircraft, celebrating its 3,000th Cirrus airplane off the production line only seven years after deliveries commenced.[43][37] That summer, Cirrus acquired a 25-percent stake in SATSair, a 2004 start-up air taxi operator that flew 26 Cirrus SR22s. SATSair ceased operations on 24 October 2009.[44]

On 28 June 2007 the Cirrus Vision SF50 single-engine light jet was unveiled.[45] At the 2007 EAA AirVenture Oshkosh airshow, the company unveiled the Cirrus SRS light sport aircraft.[46] A version of the B&F Fk14 Polaris, the type never entered production for Cirrus. In December 2007 Arcapita stated that it was looking to sell its share of the company. Cirrus Aircraft indicated at the time of the announcement that this was expected as Arcapita was considered a medium-term investor.[12]

In September 2008 the global sale slump in piston-engined aircraft impacted the company and it laid off 100 workers or 8% of its workforce. This included 79 people at the main plant in Duluth, Minnesota and 29 employees at the composite construction plant in Grand Forks, North Dakota. After this round of lay-offs Cirrus had 1,230 employees remaining. Company COO Brent Wouters stated that the lay-offs were due to "not selling as many airplanes as we'd hoped to this year."[47]

Company CEO Alan Klapmeier announced in October 2008 that due to the economic situation and resulting lack of demand for Cirrus aircraft, the company was moving to a three-day work week. He reported that sales were down 10% over the same period in the previous year. Compared to the industry average in that same period sales were down 16%. Klapmeier also indicated that introduction of the Cirrus SRS would be delayed until 2009, due to lack of demand in the light-sport aircraft market sector, but that the Cirrus Vision SF50 jet would not be delayed.[48][49]

Cirrus eliminated 208 employee positions in the fall of 2008 and cut aircraft production from 14 to 12 aircraft per week in response to the economic situation. In November 2008, the company announced that it would lay-off about 500 production employees for one month to allow for reductions in excess stock of aircraft produced.[50][51]

Cirrus started recalling its workers on 5 January 2009 after the month-long shutdown. The furloughed workers were called back slowly over the month, to ramp up to production to eight aircraft per week, compared to a company capacity of 16 aircraft per week. The company indicated at that time that it would retain the ability to reduce its workforce quickly as the economic situation and sales numbers dictate.[52]

On 9 January 2009 Cirrus announced that it would lay off 50 administrative employees and extend the lay off period for 100 of the 500 employees laid off over Christmas 2008. Company spokesman Bill King stated that the cuts were necessary or else the company would not survive the current economic crisis.[53]

Cirrus Vision SF50 single engine very light jet

In early February 2009, the company's new CEO, Brent Wouters, indicated that the future of the company would likely hinge on the Vision SF50 jet design as production of the piston single-engine SR-series had fallen to 20% of its 2008 rate of 16 aircraft per week. Wouters characterized demand for new aircraft as "awful" and added, "We are increasing our focus on the jet, because that is going to be our future engine for growth in my estimation."[54]

In April 2009 the company announced that it was suspending the Cirrus SRS light sport aircraft project. It cited economic conditions, that the aircraft required development, an expanded flight-training strategy and that the LSA rules were expected to change over time to allow LSAs with a broader mission profile.[55]

On 29 April 2009 the company announced that it was increasing production from the previous 3-4 aircraft per week back to 6 aircraft per week. The change was accomplished without recalling any laid-off workers. The company stated: "We continue to see very encouraging trends in sales activities and interest from sales prospects domestically and around the world. Clearly, this is an upward move and is indicative of a stronger bias toward growth in aircraft orders. Though we remain in a very challenging environment, our hope is that this new rate is the first step and initial indicator of what will become a more substantial trend into the second half of the year and beyond."[56]

On 1 June 2009 the company announced it was recalling 50 workers and boosting production to 8 aircraft per week.[54][57]

The company stated:

“ In contrast to other reported general aviation industry trends, Cirrus Aircraft has seen consistent growth in new aircraft orders over the past 120 days, with stronger order rates consistently outpacing production output over that timeframe. Equally notable are the sources of the new orders. Domestic and international retail demand, as well as both U.S. and global institutional demand, are each playing a contributory role. Cirrus Certified, its pre-owned aircraft sales division, is seeing similar increased sales activity with used aircraft inventory levels showing increasing signs of stabilization.[57] ”

On 26 June 2009 it was reported by AvWeb that Cirrus Aircraft co-founder and former CEO Alan Klapmeier intended to buy the Vision SF50 project from Cirrus Aircraft and its major shareholder Arcapita and produce the aircraft under a new company. The new venture had been receiving financial advice from Merrill Lynch. Klapmeier indicated that his reason for wanting to take over the project was to speed up development and get the aircraft on the market sooner.[58][59] Cirrus CEO Brent Wouters indicated that while the company intended to proceed with the SF50 program itself, he would listen to Klapmeier's proposal.[60] On Monday 27 July 2009 Cirrus CEO Brent Wouters and co-founder Dale Klapmeier stated at a press conference that they would find a way to produce the SF50, either at Cirrus or through selling it to Alan Klapmeier. They both said that the key factor was raising enough capital to proceed with the project, complete certification and commence production.[61] On Friday 31 July 2009 Alan Klapmeier announced that his offer to buy the SF50 program had not succeeded, with the key issue having been the program selling price, as well as other points and that the negotiations were at an end. Wouters responded saying further talks were possible, but that Cirrus would continue to develop the SF50 in house.[62][63]

In late August 2009 Cirrus announced that it was laying off 85 employees, mostly office workers. Todd Simmons, Vice President of Marketing stated: "These are challenging days for Cirrus, but the decision made is in the best interest in the entire company. Our outlook is still positive. We are making forward progress within the industry."[64]

In November 2009 the company laid off an additional 58 workers, or 10% of the remaining payroll. The company indicated that it had failed to achieve some "institutional sales of aircraft" and that meant the lay-offs were expected and also emphasized that it does not indicate deeper problems with the company. As of 11 November 2009 the company had about 550 production workers employed.[65]

2010s

In March 2010 Cirrus went to court in an attempt to get an order to prevent former supplier L-3 Communications from telling other Cirrus suppliers that Cirrus was heading into bankruptcy and from discouraging companies from doing business with Cirrus. On 1 April 2010 Cirrus applied for a "voluntary dismissal" of the case against L3, before L3 had filed a response. L3 had been engaged in a lawsuit against Cirrus for non-payment of US$18.7M in development costs for flat panel electronics, with Cirrus countering that L3 did not abide by the contract terms.[66][67]

In June 2010 the company began paying back-rent owed to the city of Grand Forks. Cirrus had stopped paying its rent 16 months earlier. It also owed the City of Duluth back rent, which the city has indicated would be forgiven in exchange for job creation.[68]

In February 2011, Cirrus was sold for US$210M to China Aviation Industry General Aircraft (CAIGA), a subsidiary of Aviation Industry Corporation, which is wholly owned by the Government of the People's Republic of China.[69][70][71] The announcement of the sale was met with mixed responses. The Duluth News-Tribune labelled it "a sinking feeling of impending loss", while Russ Niles of AvWeb said "Chinese participation in the aviation industry isn't necessarily a bad thing and the folks in Duluth and Grand Forks could have suffered a worse fate. In the absence of a sale, bankruptcy was a real possibility for Cirrus and it might have been hard for a trustee to justify operating the business with the numbers it was showing. As for where it leaves current Cirrus owners and those thinking of buying one, the sale is probably a positive thing."[72]

In mid-March 2011 aviation industry analyst Brian Foley indicated that he was trying to organize a group of US investors to make a counter-offer to the Chinese buy-out to keep Cirrus as a US-owned company. Foley stated that he had seen an "overwhelming response" from the US aviation community, indicating that Americans want Cirrus "to be owned and operated on American soil, period."[73] Foley's counter-offer did not materialize.

In late March 2011 freshman Minnesota congressman Chip Cravaack urged the Committee on Foreign Investment in the United States to exercise "extreme caution" over allowing the sale of Cirrus to the Chinese government, indicating that he was concerned that company technology would be used for Chinese military programs. Cirrus spokesman Todd Simmons responded to the congressman's remarks with surprise, responding that, "the CAIGA transaction is an investment in Duluth and our local communities."[74] On 30 March 2011, at the Sun 'n Fun airshow, company co-founder Dale Klapmeier provided reassurances that Chinese ownership would not result in production being moved out of the USA. Klapmeier also expressed disappointment in the political issues raised, particularly by Cravaack. Klapmeier explained, "His concerns are unfounded," detailing that Cirrus did not have any unique technology that could be employed in military applications.[75] Former 18-term Minnesota Congressman Jim Oberstar also came out in support of Cirrus and the acquisition, saying Cravaack was "undermining" the situation, and that "we have nothing to fear from an investment such as this by the Chinese."[76][77]

The sale was reviewed by the Committee on Foreign Investment in the United States and was approved, as Cirrus has no national security-sensitive trade secrets.[78] The sale to CAIGA was completed as a merger of the two companies on 28 June 2011.[79][80]

In July 2011 CAIGA President Xiangkai Meng and Duluth Mayor Don Ness signed a non-binding Memorandum of Understanding that the jobs at Cirrus Aircraft would remain in Duluth and not be moved to China. Ness said "Verbal assurances are wonderful, but a written assurance, signed by the president of CAIGA, certainly carries much more weight."[81]

Following the company's merger with CAIGA in July 2011 company CEO Brent Wouters indicated that Cirrus would move quickly to expand its line of aircraft, including bringing the Vision SF50 jet to market. Wouters said "We need to expand our product line -- bigger, smaller, faster airplanes, a much broader range, and very quickly. And we need more penetration in the top 10 foreign markets. And we must go forward quickly on both avenues."[82]

On the first anniversary of Chinese government ownership in 2012, company CEO Dale Klapmeier indicated that the company was financially in a much better position and progress was being made with certifying the Vision SF-50 jet.[8]

In March 2013 the company was granted a loan for US$950,000 from the City of Grand Forks, North Dakota to purchase an autoclave for composite production at the company's Grand Forks facility. The loan was originally turned down by the city, questioning whether the company would ever repay it. The loan was later allowed and an apology issued.[83]

In July 2013 the company's President and COO Pat Waddick indicated that the ongoing Chinese government investment would allow it to continue to develop new models of aircraft with innovative powerplants. CEO Dale Klapmeier stated that the company would be establishing aircraft manufacturing facilities in China.[84]

In 2013 the company delivered 276 new aircraft. This was a 10 percent increase in the number of deliveries over 2012 and the company's best year since 2008. In 2013 the SR22 and SR22T were the highest selling four-to-five-seat fixed wing aircraft in the world and had been for eleven years in a row.[85]

On March 25, 2014 the company's first conforming Vision SF50 jet flew.[86] Cirrus also indicated that it was continuing to hire engineers, technicians and designers for the jet program. From 2011 to 2014 Cirrus hired more than 300 new workers, bringing the total number of employees to over 800.[87][88]

In 2015 the company announced plans to expand to Knoxville, Tennessee, establishing a customer delivery center there.[25]

Products

2003 model Cirrus SR22
Interior of SR22 with Perspective avionics

SR aircraft series

Cirrus SR (Single Reciprocating) Series aircraft are designed around composite technologies with Cirrus Perspective by Garmin digital flight displays and modern avionics as standard equipment. The aircraft are all electric - no vacuum systems are used. Redundancy is provided by dual batteries and alternators. The SR22 is also available with TKS anti-icing equipment which enables flight into known icing conditions.[89] The SR22 was the first aircraft to come equipped with 'airbag seatbelts', two airbags installed in the shoulder harnesses of both the pilot and co-pilots' seat belts.[90][91]

The aircraft incorporates other unusual design elements. All Cirrus aircraft use a mechanical side yoke instead of the traditional yoke or stick flight controls. The aircraft also use a single power lever that adjusts both throttle and propeller RPM via a mechanical cam actuated throttle and propeller control system. Construction is dominated by the use of composite materials, although traditional aluminum is used for flight control surfaces.

The Cirrus SR22T is powered by a Continental TSIO-550-K turbocharged engine. Turbocharging allows the engine to maintain maximum power at higher altitudes while increasing the maximum operating altitude to 25,000'.

Cirrus Airframe Parachute System (CAPS)

NASA photo series showing the CAPS deployment in action

The Cirrus SR series (SRV, SR20 and SR22) aircraft are equipped with the Cirrus Airframe Parachute System (CAPS), developed in association with Ballistic Recovery Systems, a ballistic parachute deployed from the back of the aircraft. In many emergencies, it allows the entire airplane to descend safely and has been credited with saving over 120 lives to date.[92] There have been no fatalities involving CAPS when deployed within the certified design parameters.[93] Cirrus was the first manufacturer to receive FAA certification for production aircraft with ballistic parachute systems, and remains the only aviation company to implement the device as a standard equipment on all its models.[94]

Because of the parachute, Cirrus designed a special kind of wing that is to have greater "spin resistance", making it more difficult for the plane to enter a spin, and thus, more difficult to recover from one.[95] CAPS was accepted by the Federal Aviation Administration as an equivalent level of safety and complete spin testing was not required.[32] The system was first tested in 1998 by late Air National Guard F-16 pilot and Chief Cirrus test pilot, Scott D. Anderson.[96] In 2004, the European Aviation Safety Agency (EASA, previously JAA) required Cirrus to conduct a limited series of spin tests for European certification. The spins were completed and met EASA satisfaction, with no unusual characteristics found.[97][98]

List of Cirrus aircraft

References

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  89. ↑ Cirrus Design (January 2009). "Cirrus Aircraft Announces Known Ice Protection Availability For Sr22 And Turbo Aircraft Models". Archived from the original on 8 July 2011. Retrieved 2009-01-12.
  90. ↑ "Cirrus Aircraft". Retrieved 1 October 2014.
  91. ↑ "Airbags in the SR22". Retrieved 1 October 2014.
  92. ↑ "CAPS Works. Training Makes It Work For You". Retrieved 2014-10-25.
  93. ↑ "CAPS History by Cirrus Owners & Pilots Association". Retrieved 2014-06-24.
  94. ↑ "Getting Cirrus about Aircraft Parachutes". Retrieved 2014-09-18.
  95. ↑ "INTERVIEW with a CIRRUS DESIGN ENGINEER". Retrieved November 2014.
  96. ↑ Fallows, James (June 2001). "Freedom of the Skies". The Atlantic. Retrieved 2014-07-18.
  97. ↑ WhyCirrus.com. "CAPS and Stall/Spin". Retrieved 2015-06-13.
  98. ↑ Cirrus Stall Spin Report (March 2004). "CIRRUS DESIGN SR 20" (PDF). Retrieved 2015-06-13.

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