KITFOX BANKRUPTCY - Canada Implications..

KITFOX BANKRUPTCY

The company known as Kitfox has filed for Chapter 7 Bankruptcy, and it looks as if anyone who has sent in a deposit or who has paid for parts will get little or nothing. Here is the link to the papers that have been filed show_case_doc_1,89321,,,,1.pdf] . There is a large tax debt, but most of the assets are the jigs and fixtures, and intellectual property. Undoubtedly the assets will be bought by someone and production will resume.
Anyone with a Kitfox registered as an AULA is currently limited to a fairly low gross weight. The Model IV and the Speedster have a manufacturer's stated gross weight of 1050 pounds when on wheels. There is no manufacturer's statement that allows floats on these two models. All other models have not had their weights publicly stated. The TC website lists all other Denny and Skystar Kitfoxes as "1058 pounds or less", which does not necessarily mean that even 1058 pounds is a legal gross weight. The "1058 pounds or less" is Transport lingo that means that the manufacturer filed the original statement back when 1058 was the maximum gross weight for the category, and the information was considered to be proprietary. Despite these low gross weights, a check of the TC registration database will show that there are a considerable number of these aircraft erroneously registered at well above these numbers. It is not illegal to register at higher than the manufacturer's stated weight. However it is definitely illegal to fly an AULA at any weight higher than that which is supported by the manufacturer.

What does this bankruptcy mean to the current owners of AULA Kitfox aircraft? There is a requirement for the manufacturer to maintain records and to be able to supply a flow of safety information to owners of aircraft registered in the AULA category. Unless Chapter 7 bankruptcy has a provision for this, this requirement cannot currently be satisfied. Advanced Ultralight is a great category when it works, but this is one of the pitfalls to consider when deciding on a new or used aircraft. The paragraphs below are copied from the Transport Canada AULA website.

" Beyond the aeroplane itself, you need to look carefully at the manufacturer. Owners of advanced ultra-light aeroplanes are highly reliant on manufacturers for the continuing fitness for flight of their advanced ultra-light aeroplanes. Manufacturers are the only entity able to provide the approval required for any modification of an advanced ultra-light aeroplane. A number of years into the life of an advanced ultra-light aeroplane, your aeroplane may need replacement parts or a modification of some nature for the continued safe operation of the aeroplane. If the manufacturer is no longer conducting business, it might be difficult or impossible to obtain suitable replacement parts. Without a manufacturer, it may be impossible to obtain approval for modifications.
A number of owners of advanced ultra-light aeroplanes have found themselves seriously disadvantaged when the manufacturer ceased to exist. These owners often face the cancellation of the Certificates of Registration for their aircraft because the aircraft can no longer meet the requirements of an advanced ultra-light aeroplane. Such aircraft may be eligible to be a basic ultra-light aeroplane; that option may not serve the owner's needs, especially if the initial selection of an advanced ultra-light aeroplane was made to provide advantages not offered only by basic ultra-light aeroplanes.

Potential buyers of advanced ultra-light aeroplanes must remember that not only are they relying on the aeroplane itself, but also they are relying heavily on the support that only the manufacturer can provide to them."


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