11 Employees Left as OAS Closure Nears

Northwest Arkansas

by Talk Business & Politics ([email protected]) March 29, 2004 12:00 am 1,005 views 

Ozark Aircraft Systems, which announced on Dec. 30 that it would close its business at the Northwest Arkansas Regional Airport in Highfill in 30 to 45 days, has only 11 employees left, primarily doing inventory. The largest employer at the airport, OAS had 477 employees in 2000 and planned to eventually have 1,200. When the announcement was made on Dec. 30, the company had 135 employees.

Alice Walton, the daughter of Wal-Mart Stores Inc. founder Sam Walton, was instrumental in bringing OAS to Highfill and was a shareholder during its first years of operation.

OAS was the North American maintenance center for International Lease Finance Corp., a wholly owned subsidiary of American International Group Inc. and one of the largest aircraft leasing companies in the world.

OAS opened to provide aircraft services — including engineering, modification and maintenance — for a variety of aircraft. The employee-owned company initially custom- built interiors for a several airplanes, including Boeing business jets and Airbus 319 CJs. Other OAS clients included American Airlines, Legend Airlines and a Saudi Arabian prince.

The Dec. 30 announcement was made by CEO Dennis Davis, who has left the company since then. Davis said OAS would complete work for one customer before closing completely. Leta Harrison, one of the few OAS employees left, said she wasn’t sure when the business would be completely closed.

In the announcement, Day said there was a “severe downturn” in the corporate aircraft business after Sept. 11, 2001, so OAS converted to a “maintenance, repair and overhaul facility” for large commercial airline planes.

OAS occupied three 57,000-SF hangars at the airport, valued at about $5.5 million each (not including the equipment they house), according to public records.

Scott Van Laningham, executive director of the airport, said OAS was trying to find another airline maintenance company to lease the hangars. Van Laningham said the airport owns the land but OAS owns the buildings.