By Rob Stapleton
Alaska Journal of Commerce

The sudden departure of an investor in a local aircraft parts manufacturing business may put 20 people out of work this month.

Businessman Sean McLaughlin has invested thousands of dollars in Chugiak-based Northern Airframes LLC, which does business as Airframes Alaska.

“It came out of the blue I got a call from the investor's representative and he said the investor has ordered us to stop selling parts and quit taking orders,” said Dick Roberts, chief operations officer of Northern Airframes.

The company, in business for the past nine months, may close its doors the week of Oct.13 unless new investors come to the rescue.

McLaughlin also has invested in other Alaska companies, including one that has built high-priced condominiums in Downtown Anchorage.

Airframes Alaska was formed in late 2007 by combining Airframes Inc. and Northern Piper Aviation Inc., both profitable small business companies started by owners who had experience with the Piper Super Cub (PA-18).

The 1940s Super Cub is one of the most popular aircraft in Alaska due to its slow flight characteristics and ease to fly to short airstrips popular throughout rural Alaska.

Roberts said he's looking for new investors, but the company will close its doors soon unless another investor takes over the company under the terms of the current owner.

While Roberts was not privy to the exact reason for the turnabout, his go-between, Scott Merriner, who is associated with ChangePoint Church, delivered the bad news on Sept. 29. Merriner simply said the investor was afraid of legal entanglements over the sales of aircraft parts, Roberts said.

Roberts said he wasn't aware of any lawsuits filed against the company.

Merriner, the CEO of Airframes Alaska, said the company was restructuring, that employee ownership was being offered to its workforce and other changes were coming.

“We are bullish on the company's products and future. This is just a hiccup,” he said. “Forces outside of the company are mainly responsible for these actions.”

While Merriner said that no layoffs were announced, sources inside the company said everyone was sent home the week of Sept. 29, without pay, but that they were recalled on Oct. 6 to resume work on five fuselages.

“At this point, the only thing we can do business-wise is to continue the maintenance aspect of the business,” Roberts said. “We can't even sell aircraft parts and we have people who have put down deposits on fuselages who need them.”

Airframes Alaska recently changed its name from Northern Airframes to reflect its new direction.

The company reportedly has first right of refusal to manufacture a Bush Alaska version of the Super Cub, called the Super 18. The new aircraft will have a higher gross weight capability, slotted wings and a 180-horsepower engine. It will offer more storage, and can be fitted with tundra tires, skis or floats.

“If this doesn't pan out, and we don't get a new investor I will be out of a job, lose my house, have to personally file for bankruptcy and loose my dream,” Roberts said.

Merriner is more optimistic.

“We support Alaska business and Alaska manufacturing, and are going to restructure the company to reflect our beliefs,” said Merriner.

Merriner would not reveal what the company needed as far as restructuring, but indicated that the current investor had spent $4.5 million on the two Birchwood hangars used for the Airframes Alaska business, the purchase of two companies and the move to Birchwood.

“This will survive with additional new money, but I can't tell you how much,” said Merriner.

Rob Stapleton can be reached at rob.stapleton@alaskajournal.com">rob.stapleton@alaskajournal.com.