Featured Profile
Written by John Pentony on October 15, 2009
Quasar Aerospace Industries, Inc.
Quasar Aerospace Industries, Inc. (OTC: QASP) is an integrated aviation/aerospace corporation created to pursue an innovative and highly synergistic business strategy in the aerospace industry.
Quasar Aerospace Industries, Inc., formerly Equus Resources, Inc., is the holding company for a group of aviation related entities that through their union strengthens the Company making it more efficient and profitable. Quasar is committed to the retention of the individual corporate cultures of their wholly owned subsidiaries while reaping the synergistic benefit of their combined union.
The units integrated in the first phase of Quasar Aerospace Industries’ operations will either be wholly owned subsidiaries, or QAI will hold a minimum 80% equity.
Subsidiaries of QAI
- Atlantic Aviation, Inc. (AAI) was created to develop and operate flight schools nationwide
- Quasar Aircraft Company (QAC) is developing a four place trainer aircraft and intends to develop the Quasar I, a twin engine, six place very light jet aircraft
- Quasar Development Corporation (QDC) will develop future aircraft designs
- Quasar Financial Corporation (QFC) supports the aircraft sales process by arranging financing and insurance for customers
- Aviation Import/Export, Inc. (AIE) is designed to import aircraft and aircraft components
Atlantic Aviation, Inc. operates a flight school at Herlong Airport in Jacksonville, Florida. Atlantic Aviation, particularly in its franchise phase, offers a significant internal market for Quasar aircraft enabling QAC to achieve profitability sooner than would have been possible otherwise. It is anticipated that the initial Jacksonville phase will provide early support for the corporate bottom line.
- Provides a ready-made market for a significant number of Quasar aircraft.
- Enhances QAI’s credibility with the early development of a significant and profitable subsidiary.
- Increases QAI’s visibility in the marketplace.
Atlantic Aviation Inc. was formed to respond to a critical shortage of flight school capacity in Florida with meeting the demand for training international students. Once the initial school is operational, the goal is to market this “School Concept” as a turn-key franchise opportunity to aviation professionals around the country.
Letter of Intent for Flight School Students: Atlantic has signed a Letter of Intent with a group from India to train foreign flight students. The Company has submitted an application to the U. S. Secretary of State for operational approval. When the program begins, the Company plans to add ten students per month until it is fully operational with 60 students in training at all times at varying stages of training and a full capacity of 80 students.
- The flight training program runs for approximately six months, at a cost of $66,000 per student for the full program.
- At full capacity it is anticipated the Jacksonville school could generate approximately ten million dollars in revenue with margins ranging from 38-45%.
- The flight training program currently has eight students enrolled.
Atlantic Aviation Jacksonville Facility:
The Company has applied for a long-term lease with the Jacksonville Aviation Authority for a flight training facility.
The facility will have:
- A 14,000 square foot maintenance hangar that will hold six aircraft
- A 6,750 square foot administration and training building
- Ramp parking for 25 aircraft
The Herlong Airport Project agreements have been signed with the Project Manager/General Contractor, the Civil Engineering firm and the Architect.
Dakota & Company of Jacksonville was selected as the general contractor. This firm has been the developer and builder of several exceptional airport projects. Mr. Fred Dewitt, the company president, will oversee all engineering, design and construction for the maintenance hangar, office building and site development. Dakota and Company has recently completed the Marco Airplane Hangar in Jacksonville, Florida, pictured below. www.dakotaandcompany.com.
The civil engineering company selected for the project is Phillips Civil Engineering. The architect the Company has chosen is Wharton Donaldson who is the Architect of record for the Marco Airplane Hangar and thus has a great working relationship with Dakota and Company. www.phillipscivil.com.
The project will be the first truly Green development on any airport in the Jacksonville area. Amongst the Green Building Initiatives will be photovoltaic electric, radiant heating and a highly insulated building.
Quasar Aircraft Company (QAC) is a Nevada corporation owned by the current principals of QAI. QAI will be responsible for the manufacture of the Very Light Jet (VLJ) and a new advanced trainer aircraft. Quasar Aircraft Company is developing a four seat trainer aircraft and will be the developer of a twin engine, six seat very light jet aircraft.
The new advanced training aircraft will have an immediate market on certification by selling aircraft to it’s sister corporation Atlantic Aviation, Inc. Jim Ray will lead this development team, and after extensive research feels confident that he will have a technically advanced, economically operating two seat aircraft certified within 18 months of the beginning of development. The aircraft will use a certified Continental power plant that only burns 5.5 gallons per hour. Quasar Aircraft intends to explore the feasibility of developing a four seater version of the aircraft.
Quasar Development Corporation (QDC) is responsible for the development of the Quasar line of aircraft. A highly talented team with a great breadth of managerial and engineering experience is in place to direct QDC’s operations. James Ray with the able assistance of our blue ribbon advisory board will direct the engineering required to complete Proof of Concept (POC) aircraft. James Ray will serve as project manager, and Herrald Jonkers will direct marketing.
Quasar Development Corporation is developing a two place aircraft. An eight/ten place aircraft would be the next development project, after that the four place craft will be placed into development. Both of these aircraft will outperform any other comparable aircraft currently on the market with an approximate 40% fuel consumption advantage.
The capstone of Quasar’s Development program will be the development of the Quasar I, a Very Light Jet. The Quasar I development project will require approximately $10 million to complete the aircraft and advance it through First Flight of the Proof of Concept aircraft. This project is 85% completed, but will not begin until a financial partner is brought on board.
The proposed Very Light Jet was initiated by an aviation enthusiast from Germany who intended to build an all composite twin engine, six place aircraft which evolved into a conventional aircraft plan. Engineers and manufacturers began work towards building the Proof of Concept aircraft. Investments of close to $50 M USD supported the projected. The Proof of Concept was never fully developed and at the time they closed their doors they had over 700 orders with $10K deposits in escrow.
Quasar Financial Corporation (QFC) provides significant assistance to the company’s sales force by enabling them to offer “One Stop Shopping” for the customers’ acquisition, financing, and insurance needs. Quasar Financial should also provide a small but steady positive cash flow.
This service corporation will facilitate aircraft financing and insurance placement for the dealer network and aircraft purchasers. It will not operate as a lender or carry any insurance risk, but rather will serve as an intermediary with major operators in these fields.
Aviation Import-Export, Inc. (AIE) This entity has been established to meet the financial protocols of lenders, and to facilitate the transfer of funds among the various relevant entities in the enterprise.
Acquisition of Manufacturing Company for Aircraft
Quasar Aerospace Industries, Inc. executed a binding agreement to acquire a manufacturing company that will provide production capability for the Quasar line of aircraft currently in development. For security reasons the name of the company will not be divulged until the acquisition is closed.
The acquisition is to be made with private funding at $54 M, of which $40 M will be in cash and the remainder in assumption of liabilities. This acquisition when it closes is anticipated to add approximately $44 M to the Company’s revenue stream and $10 M in EBITDA.
The company to be acquired has a vast range of capability in the aerospace industry, and operates three plants totaling approximately 300,000 square feet. The company owns two of the plants equaling 190,000 square feet and leases the third plant. The revenue and profit numbers are achieved with less than 250 employees and an excellent safety record.
Undisclosed Purchase Agreement for Aviation/Aerospace Company
An agreement to acquire a third aviation/aerospace company was signed in May of 2009. The full Board of Directors of the company to be acquired unanimously approved recommending to the shareholders that they accept the offer of One Dollar per share for the 32 M shares outstanding. The members of the Board hold over 80% of the outstanding stock so shareholder approval is certain to be obtained.
The acquisition will add approximately $18 M to the Company’s annual revenue and $3.75 M to the bottom line. The current management team will remain intact. Quasar’s management team has been closely associated with this company for over three years.
Business Plan
The company business model is based on two core principals:
(1) A phased approach to the development of individual aircraft which will insure early profitability and minimize financial risk through time, and
(2) The development of an integrated network of companies whose synergies will enhance profitability throughout the company.
Phase One
The first phase of QAI’s plan consists of the development of the Quasar two seat training aircraft. The manufacture of light propeller powered aircraft has lagged significantly in the U.S. market for some years, with the exception of “Kit Built” planes.
There is a void in the market place for an affordable trainer aircraft. Cessna no longer produces the 152, and the 172 is priced in excess of $200,000. Cessna has announced the development of an LSA, to be built in China, which they plan to begin delivering in late 2009. However, with the recent crash of the prototype could delay that program. Over 1,000 orders have been placed for this aircraft. The Quasar trainer will be designed to fill this void, and to provide a superior plane that is safe, dependable, extremely cost efficient, and supported by a nationwide maintenance and repair capability.
Once the Quasar trainer is established in the marketplace, the company will proceed to the development of four and ten place aircraft. The four place aircraft will begin flight tests in late 2009. This aircraft will be certified by the FAA. Company designers will work closely with the company’s Advisory Board (Described below) in a coordinated process to insure that the final design is approved. Since the U.S. is the largest market in the world it is paramount to obtain FAA certification at the earliest possible date. The phased approach is designed for a cash positive approach with substantial revenues from inception.
Research indicates that market for this category of aircraft is large, and that the market appears to be far greater than the productive capacity of the manufacturers currently in the business. Other then the projected Cessna entry, there are a few European built planes that our aircraft should be able to compete against effectively.
Phase Two
Once the Quasar line is established the Company intends to:
- Continue to carve a substantial niche in the affordable light plane market,
- Become a major player in the manufacture of aircraft/aerospace components for the aircraft industry, and
- Design, certify and build the best Very Light Jet aircraft available in the marketplace over the next five years.
The market for Very Light Jets also appears to be greater than current productive capacity. With a production capacity of 150 planes a year, a new customer would expect to wait until 2022 to take delivery. Once the development phase is completed the sales forecast for the Quasar I is 20 aircraft in 2010 and 100 aircraft in 2011.
Chief Executive Officer
Dean Bradley Director Chairman and Chief Executive Officer
Contact:
Dean Bradley
904-612-8485
deanbrad@bellsouth.net
Quasar Aerospace Industries, Inc.
9300 Normandy Blvd.
Suite 511
Jacksonville, FL 32221
http://www.equusresources.com
Phone: 904-612-8485
Fax: 904-378-3252
This Profile contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements as a result of various factors, and other risks. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and Equus Resources, Inc. and Quasar Aerospace Industries, Inc. under take no obligation to update such statements.
Disclosure: Pentony Enterprises LLC is STOCKGURU.COM, SHAREHOLDERVISION.COM and STREETRESEARCH.COM. 9555 Lebanon Road; Suite 103; Frisco, Texas 75035. (469) 252-3030. Disclosure: Pentony Enterprises LLC has been compensated $14,000 by the company for profile coverage for the period ending November 25, 2009. Pentony Enterprises is not a registered investment adviser or a broker/dealer. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person, or that an investment in such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
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