Oregon-Based Van's Aircraft Declares Bankruptcy

January 25, 2024

Van's Aircraft Inc, founded in 1972 by Dick VanGrunsven, is an experimental aircraft kit business that benefits from a through-the-fence arrangement with the publicly-funded, state owned Aurora Airport in Oregon. In 2020, Van's was the recipient of a $1-2 Million Paycheck Protection Program (PPP) grant.

According to a 12/06/2023 Aviation Pros article Van's Aircraft Announces Chapter 11 Reorganization, "Over the past few years, the company has faced a handful of complex issues, including unprecedented supply chain challenges throughout COVID, faulty primer that led to corrosion problems on quick build kits, and problems with laser-cut parts that were manufactured in response to high demand. As a result of this combination of issues, the company experienced serious cash-flow problems from which it could not recover through the normal course of business." A 12/06/2023 AVweb article stated that the company owes between $10 and $50 Million to creditors.

An AOPA 12/05/2023 article, which described Van's as "the world's largest manufacturer of experimental aircraft kits," reported that, "More than 11,250 Van's 'RV' kits have been finished, registered, and flown around the world." However, as a result of current financial woes, "The 51-year-old Oregon firm will immediately raise kit prices about 32 percent, and parts prices are likely to rise even more than that...Customers with kits on order will have the option of paying the new higher prices, or canceling their orders and seeking refunds through the bankruptcy court process as unsecured creditors. Such creditors typically receive only partial refunds."

An earlier AOPA 10/30/2023 article on Van's financial difficulties included the following explanation, "a 'multi-million-dollar setback' related to the use of inferior primer on parts sourced overseas, which led to corrosion 'forming on a large number of quick build kits' that resulted in many parts being scrapped; and another issue with outsourced parts with holes that were laser-cut rather than punched, with customers reporting cracks around the laser-cut holes. Company tests determined the parts were usable, but many customers requested replacement of affected parts nonetheless."

According to a statement from Van's Aircraft quoted in the article, "This has resulted in an unmanageable number of requests to replace laser-cut parts and cancel orders...More than 1,800 customers are currently affected by this issue, some of whom have received more than one kit."

General Aviation Aircraft - High Accident Rate

The National Transportation Safety Bureau NTSB General Aviation Dashboard: 2012-2021, reveals that during this 10 year time-frame, there were a total of 12,368 general aviation (GA) accidents in the U.S. involving 3,817 deaths. This averages out to 3.4 accidents and one fatality somewhere in this country every single day.

Clearly, General Aviation (GA) aircraft, including amateur, experimental aircraft built from kits, are highly accident prone. The discussion on accident rates specific to Van's Aircraft, below, does not include other experimental aircraft companies or the hundreds of Cessna, Piper, Beech and other aircraft that seem to be falling from the skies at an alarming rate every year. Nor does it include helicopter, air taxi and jet accidents.

Van's Aircraft Accident History

Van's offers a number of different makes and models of aircraft. Some are designed for travel, others for sports aerobatics. Some have room for passengers, others have a more limited seating capacity. What they all have in common is a significant history of accidents, including fatalities. Since 1980 more than 1,068 accidents have occurred in these aircraft, 454 pilots and passengers have died. The statistics below are from the Aviation Safety Network (ASN) database.

Van's 3, 3A, 3B, 3M

Between 4/26/1980 and 1/28/2023, Accidents 40, Fatalities 22

Van's RV-4

Between 5/02/2012 and 11/07/2023, Accidents 174, Fatalities 86

Van's RV-6 and 6A

Between 9/20/1992 and 1/02/2024, Accidents 350, Fatalities 152

Van's RV-7 and 7A

Between 10/13/2003 and 12/12/20023, Accidents 146, Fatalities 60

Van's RV-8

Between 5/24/1998 and 12/16/2023, Accidents 157, Fatalities 48

Van's RV-9 and 9A

Between 9/05/2002 and 1/25/2023, Accidents 90, Fatalities 26

Van's RV-10

Between 9/19/2007 and 1/21/2024, Accidents 69, Fatalities 24

Van's RV-12 and 12iS

Between 6/24/2010 and 10/26/2023, Accidents 32, Fatalities 13

Van's RV-14 and 14A

Between 9/24/2018 and 11/3/2023, Accidents 10, Fatalities 1

Concluding Remarks

On 1/5/2024, pilots, crew members and passengers were put in grave danger when a door plug panel blew out shortly after a Boeing 737 Max 9 jet departure from the Portland International Airport. Fortunately no one died, though some passengers sustained significant injuries. Subsequently, a number of the 737's were grounded pending further investigation.

A 1/09/2024 PBS Frontline article raised an earlier design flaw issue with Boeing 737 Max 8 jets which were grounded in 2018 and 2019 after 346 people died in two separate plane crashes. Yet despite 12,368 general aviation aircraft accidents between 2012 and 2021, including 3,817 deaths, little has been done to investigate the exceptionally high general aviation accident rates in the U.S. As the number of GA operations has climbed in recent years, people both in the air and on the ground are increasingly at risk.

This raises a question as to why companies like Van's Aircraft, with a lengthy and documented history of multiple accidents including hundreds of fatalities, is not subject to the same scrutiny as Boeing. Similarly, Cessna, Piper and other highly accident prone general aviation aircraft routinely engage in dangerous practice maneuvers while flying low and loud over people's homes and neighborhoods with minimal if any oversight or regulation enforcement.

But wait, it gets even worse. Not only is the American public put at risk by these aircraft, in addition they are forced to subsidize thousands of general aviation airports including expansion projects, runway extensions, air traffic control towers and hangar construction on behalf of hobbyists, flight schools, private pilots, and private jet owners. This is unjust and unfair. The users of these airports should be required to assume the full cost of their expensive hobbies, not the people who don't even use these facilities. In addition, users need to be held fully responsible for the damages caused by their flying habits to residents and property on the ground as well as the environment and public health.