When it comes to travel, the overall industry has become a lot more self-serve.
Travel agents are incredibly useful when consumers book cruises, vacations that involve more than one family, and other complicated trips.
But the internet has made it easier to take a do-it-yourself approach. Sites like Booking's (BKNG) -) Priceline help you assemble your own vacation and they even offer ready-made packages.
And the idea of assembling your own travel fits with a lot of other popular modern conveniences. Meal kits — where you get a bunch of premeasured and cut ingredients — fit that description.
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Essentially, we've become a make-your-own-pizza society where at least some people want to take a DIY approach, but they know they need a hand. Using Priceline to build a trip and literally building your own plane are two very different things.
Planes are very expensive, and building them from kits has become a popular hobby. Van's Aircraft has been a leader in that space, selling kits for hobbyists to build small planes that are both legal and safe.
The company supports tens of thousands of existing planes built from its kits and has thousands more on order.
Van's Aircraft, however, has experienced significant financial difficulty and has filed for Chapter 11 bankruptcy protection.
Image source: Pixabay.
Van's Aircraft files for Chapter 11 bankruptcy
Van's posted a statement on its website about its Dec. 4 Chapter 11 bankruptcy filing.
The Aurora, Ore., company, founded 1972, tried to reassure its customers that it would "continue to source, produce, and provide parts, service, and support to our customers. We will also be crating and shipping kit orders."
The company sells a variety of kits to make airplanes, and many of its customers have never built a plane before.
"RV kits are very complete. All necessary aluminum forming is done; all welding is completed at the factory. Molded canopies and fiberglass parts are supplied. All the hardware is included. Most steel parts are powder-coated," the company writes on its website.
Van's sells planes that have up to four seats with a variety of capabilities. Some are optimized for short flights while others have longer ranges or can even be used to perform acrobatics.
Van's explains why it filed for Chapter 11
In a note to customers posted on its website, Van's made clear that it has a significant inventory of parts, so it can continue to support built aircraft as well as those being built now. The company also explained what led to its Chapter 11 petition, filed in U.S. Bankruptcy Court for the District of Oregon.
Over the past few years, the company has faced a handful of complex issues, including unprecedented supply chain challenges throughout COVID, faulty primer that led to corrosion problems on quick build kits, and problems with laser-cut parts that were manufactured in response to high demand. As a result of this combination of issues, the company experienced serious cash-flow problems from which it could not recover through the normal course of business.
Building a Van's plane starts at about $45,000, and that would involve using a used engine. The company said it has a 12-to-18-month supply of parts to serve its customers.
"We understand that this situation creates a hardship for everyone involved. However, without these changes we do not see a viable path forward that would allow Van’s Aircraft to remain in business and support its customers," the company added.
All planes built from the company's kits must be licensed and registered as required by law. The company says that building its planes requires "virtually" no skills.
"One requirement that’s more important than skill is having the right frame of mind," the company wrote.
"Building an airplane requires dedication, commitment, a willingness to learn, and the ability to make (and correct) the occasional mistake without throwing a frothing fit or suffering an ulcer."
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