Chinese Acquisition of United States Aircraft Manufacturer Facing Possible Department of State Scrutiny

Posted on August 10, 2011 by Van Hilderbrand

On June 28, 2011, the Minnesota based small aircraft manufacturer, Cirrus, was acquired for a reported $210 million by China’s state-run Chinese Aviation Industry General Aircraft (“CAIGA”). This acquisition has raised questions concerning jurisdiction and China’s ability to gain access to potential U.S. military technology. CAIGA currently manufactures a stealth jet fighter and has come under scrutiny for previously bidding on U.S. defense contracts. Thus, a request for jurisdiction review to the Department of State was initiated just after CAIGA’s purchase of Cirrus. 

Cirrus has a line of four-seat turbo prop planes, along with technology for a small jet prototype, the Vision SF50. Cirrus uses Williams International’s FJ33-4A-19 engines on the SF50. It is this engine technology that has come under scrutiny. The FJ33 uses a Full Authority Digital Engine Control (“FADEC”), which the Department of State may classify as a military item. If it does, Cirrus could lose access to its prototype due to its acquisition by a foreign-owned company. Until the decision is made, the SF50 remains with Williams International.

The Department of State’s jurisdiction review could take up to six months. A similar review last November denied a Chinese acquisition of a U.S. technology start-up worth $2 million, just one of a handful of Chinese acquisitions that were not approved. As this case progresses, please check back to this blog for future posts. 

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EPA Publishes Nitrogen Oxide Emissions Standards for Aircraft Engines in the Federal Register

Posted on August 3, 2011 by Van Hilderbrand

As a follow-up to our July 14, 2011 post entitled “EPA Proposes Rule to Set Standards for Nitrogen Oxide Emissions From Aircraft Engines,” on July 27, 2011 the Environmental Protection Agency (“EPA”) published the proposed rule setting nitrogen oxide emissions standards for aircraft engines in the Federal Register (76 Fed. Reg. 45,012). The United Nations’ International Civil Aviation Organization (“ICAO”) has previously endorsed the emissions standards and engine manufacturers have begun conforming to the published standards. The EPA believes that the emissions standards will reduce nitrogen oxide emissions at takeoff and landing by 100,000 tons between 2014 and 2030.

The rule’s release date was July 6, 2011 (130 DEN A-7, 7/7/11) and the EPA will accept comments on the proposed rule through September 26, 2011 at Regulations.gov (Docket Number: EPA-HQ-OAR-2010-0687). A public hearing will be held on August 11, 2011 at the Sheraton Chicago O’Hare Airport Hotel in Rosemont, Illinois at 9:30 a.m. As this issue progresses, please check back to this blog for future posts.

 

Special thanks to Sullivan & Worcester's Ari Hoffman, environmental intern, for assisting in the preparation of this post.

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