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DEVILS LAKE: Aircraft refurbisher closes doors
Dakota Aero Manufacturers had high hopes for creating 100 jobs
By Elisa L. Rineheart
Herald Staff Writer
An aircraft refurbishing company that took off during the 1998 general aviation manufacturing boom in North Dakota, and that was expected to create 100 jobs in Devils Lake, closed Monday.
Dakota Aero Manufacturers specialized in rebuilding used twin-engine airplanes built in the 1970s.
Since it opened in 1997 at the Devils Lake airport, the aircraft repair and replacement company received more than $1 million from city, state and private investors, The Associated Press reported.
"The support we have received makes it especially difficult for us to close our doors, knowing that we are disappointing so many good people in the Devils Lake area and across the state," said company president Duane Bye.
Originally, the company was expected to generate 15 new jobs each year in the five years since its inception. The average salary was estimated at $30,000 per year, said company executives in an interview with the Herald back in early 1998.
Flood recovery
At the time, Devils Lake was starting to recover from a series of floods that had taken a toll on local business owners, so the announcement of a new employer in town was treated like "a breath of fresh air."
To aid in the start-up process in 1998, the Devils Lake City Commission gave the company a $40,000 grant.
But in early 2001 - after a dramatic restructuring of its business strategy - and despite a substantial investment from Bye, the company was forced to borrow $200,000 from the North Dakota Development Fund, said a report from the city of Devils Lake.
A major setback in the restructuring process was that the company was unable to get a certification from the Federal Aviation Administration to rebuild a twin-engine passenger airplane powered by a liquid cooled engine rather than a more common air-cooled one, The Associated Press reported.
Bye also blamed the Sept. 11 terrorist attacks for hurting the aircraft industry.
"We have tried hard to recover from these unsuccessful outcomes, but as the group of owners from the company, we are financially, emotionally and physically exhausted," Bye said.
Dakota Aero Manufacturers had high hopes for creating 100 jobs
By Elisa L. Rineheart
Herald Staff Writer
An aircraft refurbishing company that took off during the 1998 general aviation manufacturing boom in North Dakota, and that was expected to create 100 jobs in Devils Lake, closed Monday.
Dakota Aero Manufacturers specialized in rebuilding used twin-engine airplanes built in the 1970s.
Since it opened in 1997 at the Devils Lake airport, the aircraft repair and replacement company received more than $1 million from city, state and private investors, The Associated Press reported.
"The support we have received makes it especially difficult for us to close our doors, knowing that we are disappointing so many good people in the Devils Lake area and across the state," said company president Duane Bye.
Originally, the company was expected to generate 15 new jobs each year in the five years since its inception. The average salary was estimated at $30,000 per year, said company executives in an interview with the Herald back in early 1998.
Flood recovery
At the time, Devils Lake was starting to recover from a series of floods that had taken a toll on local business owners, so the announcement of a new employer in town was treated like "a breath of fresh air."
To aid in the start-up process in 1998, the Devils Lake City Commission gave the company a $40,000 grant.
But in early 2001 - after a dramatic restructuring of its business strategy - and despite a substantial investment from Bye, the company was forced to borrow $200,000 from the North Dakota Development Fund, said a report from the city of Devils Lake.
A major setback in the restructuring process was that the company was unable to get a certification from the Federal Aviation Administration to rebuild a twin-engine passenger airplane powered by a liquid cooled engine rather than a more common air-cooled one, The Associated Press reported.
Bye also blamed the Sept. 11 terrorist attacks for hurting the aircraft industry.
"We have tried hard to recover from these unsuccessful outcomes, but as the group of owners from the company, we are financially, emotionally and physically exhausted," Bye said.