By Anna Sowa / The Bulletin
Kingfisher Airlines Chairman Vijay Mallya’s $200 million investment in Bend’s Epic Aircraft earns him half-ownership of the company.
The $200 million investment by an India-based airline mogul in Bend’s Epic Aircraft could help the local airplane maker break into the commercial jet market by producing larger planes for larger companies, an Epic spokesman said Thursday.
“It’s extremely likely that the Bend facility will grow substantially and contribute more to the job market in Bend,” said Lyn Freeman, the Epic spokesman who revealed how much Vijay Mallya is investing in Epic. “It will be a big shot in the arm for the Bend economy, but how big a shot it turns out to be ... I don’t know.”
Epic employs 140 people in Bend.
Mallya, a billionaire who owns Kingfisher Airlines in India, refers to himself as the “King of Good Times,” according to his chairman’s message on the Kingfisher Web site. The 51-year-old is known for his lavish parties and flamboyant, jet-setting lifestyle, complete with expensive toys that include a more-than-300-foot yacht, 200 horses, a fleet of rare cars and a personal jet the size of a large commerical airliner.
Epic President and CEO Rick Schrameck announced Wednesday that Mallya, his friend and fellow aviation buff, was investing in the company, but Schrameck did not disclose the investment’s size.
Mallya representatives could not be reached for comment the past two days, but Freeman said Mallya’s office has confirmed the $200 million investment.
Mallya now owns 50 percent of Epic, Freeman said, adding that Mallya “has insisted” that Schrameck remain as company chief.
'Speedier transformation’
Mallya’s role is expected to be that of a financing source and middleman between Epic and other aircraft companies to which Mallya has ties, Freeman said.
“My guess would be that (Mallya) would bring a lot of information that would lead Epic to a speedier transformation into the commercial jet market,” Freeman said. “Vijay will try to help Epic crack that nut because he lives in that world.”
Through his Kingfisher Airlines, Mallya has a long-standing relationship with Airbus, the French aircraft maker that competes globally with Boeing for commercial jet business. Kingfisher was one of the first to order the new Airbus A380, the world’s largest passenger aircraft. It can be configured to seat upward of 550 passengers.
Epic currently makes its “experimental,” or kit planes, in Bend. For kit planes, Epic builds or orders parts that customers put together themselves at Epic’s Bend plant. Customers get on-site help this way and can finish the plane quickly.
The company is working on certifying a turboprop and light jet in its new facility in Canada, where the company built a plant to avoid the long, expensive procedure of getting Federal Aviation Administration certification. Aircraft are certified to global standards, so planes certified in Canada would be eligible to fly in the United States.
Gary Miller, president of the Central Oregon chapter of the Oregon Pilots Association, said
Epic’s goal to certify a line of single- and twin-engine jets in Canada could use the financial help from Mallya.
“Certainly, having a fat line of credit is going to be good for a company, if they can make good use of it,” Miller said.
Federal certifications can cost tens or hundreds of millions of dollars, Miller said, and Mallya could solve that problem. Epic will be a good investment for Mallya, he added. Epic has proven to be an ambitious airplane maker with an impressive product line that includes the twin-engine jet Elite and upcoming light jet, Victor.
“Their ability to come up with new airplanes is slightly unusual,” Miller said, “and very costly.”
He pointed to Epic’s five planes listed on its Web site, one of which is certified: the single-engine
turboprop Epic Dynasty.
The future for Epic planes will be larger and faster models, Freeman said. The largest Epic plane currently holds eight passengers. Bigger planes could be used for commercial airlines’ pilot training, he said.
With Epic producing larger aircraft, more opportunities for growth will exist in the commercial airline market, Freeman said.
“Vijay believes the light-jet market is going to be a heavy growth market, which is why he jumped in so strong,” Freeman said. “He looked at our designs and capabilities and just really liked the whole vision of Epic. He loved the business model.”
Deep pockets
Mallya, a member of Indian Parliament, stepped into his late father’s business, United Breweries Group, in 1983 at the age of 28. Since then, he’s built it to a $2 billion organization with operations in various industries, including alcoholic beverages, pharmaceuticals and infrastructure development. Forbes.com lists Mallya’s net worth at $1.5 billion.
Freeman said Schrameck and Mallya have a mutual love of car racing. Mallya has been involved with international car-racing circuits, including the high-profile Formula 1 circuit as an official partner of the Panasonic Toyota Racing F1 team, according to his Web site.
Mallya also produces the annual Kingfisher Swimsuit Calendar, associated with his flagship beer brand, the last of which featured photo shoots from the French Riviera. He also sponsors golf, tennis and polo events in India.
Anna Sowa can be reached at 383-0304 or asowa@bendbulletin.com
