ChCh Flight Experience In Admin- Saved

[twinstarda42]

http://www.stuff.co.nz/business/2969084/Av...-administration

Aviation firm glides into administration
By MARTA STEEMAN - The Press Last updated 05:00 16/10/2009

Christchurch's Flight Experience Group has been put in voluntary administration by its owners.

The firm, in which Mike Pero has been a leading promoter and shareholder, makes and sells flight simulators for pilot training and entertainment. It owes ASB Bank $4 million.

Chief executive Bill Highet said the company had suffered from the international downturn and the high dollar. It had been paying the interest required on the loan but has been unable to refinance it after it expired in February.

Three or four investors, mostly local parties, were interested in buying into the company and doing a deal with the bank. That would dilute the holdings of its present owners, about a dozen shareholders, with the single largest being local boutique investment bank and adviser Ocean Partners.

Highet said about $10m of equity had been invested in the company.

The company had 12 employees. Some had kept working as volunteers for the past month but were now looking for new jobs.

Flight Experience, formerly known as Pacific Simulators, designed, manufactured and exported flight simulators and sold franchises in New Zealand, Australia and Asia. The company sold six simulators in the past year.

Highet said an administrator was needed as a third party to sort out a restructuring. Voluntary administration allowed companies to restructure in an orderly manner.

If a new shareholder injected equity the company was likely to retract to just a small operation with a couple of key people, he said. Its focus would be to support the 11 franchisees operating around the world.

The company owed nine local suppliers about $200,000, he said.

[Ian Warren]

This will be a slight glitch due the , this recent past year or last 18 months , many have not seen one off these units , 'the sim' put together , the talent is there .. they just require that market to open again , to experience one , well simply my non sim younger brother very impressed , a mare glitch .

[AlisterC]

Very sad news. I am one of those now looking for new work - I wish it could have been different and the company didn't deserve this. It was a great idea going places, until the stupid recession hit...
RIP F.E!

[benwynn]

Will this affect all FE's or just the construction of the simulators wing of the company?

Very sad news, I guess people just can't afford those things anymore. If only they could get through another year or two...

[Ian Warren]

QUOTE (Albatross @ Oct 17 2009, 09:51 AM) <{POST_SNAPBACK}>

Very sad news. I am one of those now looking for new work - I wish it could have been different and the company didn't deserve this. It was a great idea going places, until the stupid recession hit...
RIP F.E!

Now you have confirmed it Alister , a Great Idea gone , anyone who have not had the chance to see what was involved , go and have a look , Northlands in Christchurch , i was simply just hoping a typical media blowup .

Good luck on your job search !

[redkiwi]

I went to the Auckland one in Botany to have a look before it opened and I was amazed after talking to them. Although it all may look like 737 stuff, it's actually all custom built for that purpose - there is barely anything in there from a real 737. The programming and R&D was amazing, and the feeling you get inside the sim is awesome!

[AlisterC]

That's right Red, there is actually nothing from Boeing in the simulators. The FE franchises are carrying on business as though nothing has happened to the manufacturing wing! So be sure to go and support them if you get the chance. You'll have a blast. Hopefully the idea has not gone, and maybe one day can be resurrected to start again.

[creator2003]

If it was cheaper to use ,i would use it every now and again for a fun fix ,seeing its very pricey to even get some sort of 15min flight is what has turned me off ,i can do all this at home with out all the controls ,plus the real factor is lost with out great eye candy ,imagine rex or fex with soem mean nz addons or orbx ,do they even run FSX ?

i hope they pick up the pieces and somehow carry on ,its been great for simming in NZ ,oh and maybe soem price changes to get more through the doors

[toprob]

Yes, it would be interesting to know how this would affect the franchises. I would imagine that they would just carry on as normal.

QUOTE

If a new shareholder injected equity the company was likely to retract to just a small operation with a couple of key people, he said. Its focus would be to support the 11 franchisees operating around the world.[/quote]
Best case, they can carry on with support and maintenance, worst is that without support and maintenance they can't afford to keep the sims going.
I've no idea of the profitability of the franchises -- I guess like anything some do well and some don't.
I always been impressed by the operation they built, it's a real shame that financial shenanigans by the folk who control the money world-wide can have some a wide-ranging affect on companies like this.

[AlisterC]

The sims run FS2004, but have numerous addons included. You can fly around some of Robin's scenery in NZ for example. The R&D guys were experimenting with FSX, Xplane etc, but it was never introduced to a FE store. To be honest, it's not particularly aimed at flight simmers who can 'do this at home' .
You can do this at home, so you would. There are plenty of other people out there who want to fly a jet simulator, but don't have the means to do it at home. Also most people buying time in the sim are partners, wives, friends, family etc buying a ride for someone, so it's not really aimed at you Creator

[deeknow]

QUOTE (Albatross @ Oct 17 2009, 03:09 PM) <{POST_SNAPBACK}>

To be honest, it's not particularly aimed at flight simmers who can 'do this at home' .
You can do this at home, so you would. There are plenty of other people out there who want to fly a jet simulator, but don't have the means to do it at home. Also most people buying time in the sim are partners, wives, friends, family etc buying a ride for someone, so it's not really aimed at you Creator

I'm sure its true that the majority of FE punters are not hard-core simmers, and also that many are attending through the generosity of their family/friends shelling out for a voucher, but I also know now after going on a family "sponsored" 90-min session just today at FE in Hamilton that it was worthwhile for me, and I'd shell out the money out of my own pocket to go again, and no doubt will.

As you point out Alister FS2004 is a core part of the product, but the actual "experience" is so much more through the interaction with the physical elements, which you just cant recreate at home, at least not without being single or having a VERY understanding partner, and having cr@p-load of $$$ and time at hand. Now I'm not on commision here but I'd say dont write-off considering it without going into a branch and taking a squiz at the kit. If anyone's keen to hear more about it feel free to PM me.

[toprob]

Might be a good opportunity for someone looking for sim work here.

[AlisterC]

Thanks for this link Rob, I've forwarded it on to some of the guys.

[twinstarda42]

Simulator firm in flight once more

Flight simulator company Flight Experience will take off again after one of the company's founders bought it back from the receivers.

Russell Hubber and Iain Pero reclaimed Flight Experience Group's assets on Wednesday under a new company, Pacific Simulators 2010, and are planning for a new push into the United States.

Before it was put into receivership, Flight Experience was designing and building flight simulators, mostly as entertainment attractions.

It has sold 11 franchises, worth about $640,000 each, including five in New Zealand, four in Australia, one in Singapore and one in Hong Kong operating two simulators.

Last month the company was put into voluntary administration and two weeks later lender ASB Bank put it into receivership.

ASB was owed $4 million by Flight Experience but receiver Simon Thorn, of Grant Thornton, said money retrieved in the sale would not cover debt to the bank. It is understood Mr Pero and Mr Hubber paid about $400,000.

That would mean the bank would left with a significant shortfall, with other creditors and investors receiving no money.

Mr Hubber built the first simulator in his garage in Lincoln, outside Christchurch, during the 1990s. Mr Pero owns one of the simulator franchises in Sydney and is brother to Mike Pero, another big investor in Flight Experience.

Yesterday, Mr Hubber said it was a bittersweet day saying goodbye to $100,000 invested in the previous company while preparing for a better future.

"People have asked me why I'm getting back into it but I'm not hesitating in saying this company has a huge future," he said. Equipment and the five remaining staff were moving to a smaller manufacturing plant. "The US market is where we will be looking."

Mr Pero said he had bought into the firm to keep the support going for his franchise in Sydney. "Without the parent company we don't really have a business."

Mike Pero said he was glad Mr Hubber and his brother had taken control of the company but was not keen to invest again, having lost millions under the previous regime.


http://www.stuff.co.nz/business/3080636/Si...light-once-more

[Ian Warren]

Go Russell and Iain ! , and the rest of the team .. wish all the good luck , Im just so pleased !