Ayres Loadmaster DSU Case Study

Delta State University Ayres Loadmaster LM200A Case Study

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Ayres Loadmaster LM200A Case Study - Dedicated Air Cargo Aircraft Acquisition and Development

CAV 670 Air Cargo

Summer I 2014

Robert Petty


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Contents

Introduction 3

The Ayres Corporation and the Loadmaster LM200 4

The Financial Load of the Loadmaster 16

The Legacy of the Loadmaster 19

References 21

Appendix 22


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Introduction

The design and manufacture of a dedicated air cargo aircraft is considered an exceptionally risky

venture, especially when one considers that most cargo aircraft are derivatives of older and less

expensive passenger aircraft, which in comparison, results in the higher acquisition cost for the new

dedicated cargo aircraft. Recovering those costs require that the aircraft have exceptional payload

capacity and efficient operational economies to make it competitive over the life of the aircraft. Often,

new technologies are the catalyst for the development of a dedicated aircraft that can exploit the

emerging technology and seize market advantage. Some in the air cargo industry have argued that the

growth (of the air cargo) industry has been hampered by the lack of aircraft optimized to fulfill cargo

carrying requirements.

The debate over the efficiency and profitability of a dedicated air cargo aircraft continues today. This

paper addresses the issue of designing and developing a dedicated air cargo aircraft through an

examination of the Ayres Loadmaster LM200 aircraft program. Contracted to develop the freight hauling

aircraft for the Federal Express, Corporation (FedEx), the Ayres aircraft company began experiencing

problems in financing and debt management and is an interesting example of the problems associated

with dedicated cargo aircraft financing. This case study will describe the Ayres Corporation, its

manufacturing heritage, the FedEx agreement for the Loadmaster LM200, Ayes financial situation, and

the ultimate disposition of the freighter design.

Throughout this case study attempts will be made to clarify the actions of the Ayres Corp., its

strategic decision-making rationale, and the financial instruments used to develop the air cargo design.

This document also serves to record the history of the Loadmaster program as individuals directly

involved in the Ayres Corporation and the development of the Loadmaster LM200 were interviewed for

this paper.


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The Ayres Corporation and the Loadmaster LM200

The Snow S-2A agricultural aircraft, designed by Leland Snow in 1958, was a successful design that

was sold to Aero Commander, Inc. of Bethany, Oklahoma in 1965. Two years later Aero Commander is

bought by North American Rockwell, where the design is modified to include electric flaps, enclosed

cockpit and enlarged chemical hopper. The construction of the aircraft was undertaken at an Albany,

Georgia manufacturing plant and the aircraft renamed the S-2R Thrush Commander. In 1977 Rockwell

sold the type certificate to its Thrush Commander to their largest distributer, Fred Ayres of the Ayres

Corporation.

Ayres modified the aircraft to include a 750shp PT6A turboprop and began selling 50 to 70 aircraft a

year from its Albany, Georgia aircraft manufacturing facility. The company recognized that a market

began to emerge in the late 1970s and early 1980s for a turboprop driven utility aircraft that could

replace the DeHavilland Beaver and Otter aircraft for remote and short field operations. Ayres having

experience with turboprop powerplants, rugged utility category airframes, and precision fabrication,

enabled them to see other markets that they could tap into.

Ayres began the design of a single engine turboprop utility aircraft in the 1980s, called the

Bushmaster, which had the tail and wing of the companys Turbo Thrush. Unfortunately, a recession in

the early 1980s and the introduction of the Cessna Caravan derailed Ayres plans for the Bushmaster,

which looked almost identical to the Caravan. Ayres decided to instead focus on diversification of his

product line and began building parts for McDonnell Douglas helicopters and Boeing 727 cargo doors

for Federal Express.

Federal Express (FedEx), Corporation, the premier over-night-express service founded in 1971, began

operations with Dassault Falcon 20 corporate converted cargo aircraft from its Memphis, Tennessee-

based air cargo center. FedEx lobbied the FAA for unrestricted geographic routing of its air cargo and as


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a result of successful lobbying, purchased wide-bodied Boeing 727s for its global network. It was at this

time that FedEx approached Ayres about its B727 cargo door construction needs. (OConner, 2001)

FedEx was using vans and other ground vehicles to transport packages between small cities and

towns to feeder airports where its aircraft could fly the cargo to its package-sorting hub in Memphis.

FedEx was looking for a turboprop aircraft that could fly routes efficiently under 500 miles and in 1982

looked on the BAE 748, Fokker F27, Marchetti Canguro, Casa 212, Piper T-1040 and the PBN Islander.

Those which have the payload capability are too expensive for us, while those which are cheap

enough cantt be loaded and unloaded easily. Federal Express particular requirement for a small aircraft

may prove extremely hard to satisfy. (Current commuters are fine), but Federal Express gets very low

utilization from its aircraft because of the nature of its operation, so initial capital and depreciation

costing assumes great significance for the company. (Flight International, 1982)

Cessna had heard about the FedEx requirement and approached them in order to demonstrate its

Cessna C-208 Caravan single-engine utility aircraft. Although, Fred Smith, founder of FedEx did not like

the idea of using a single engine aircraft in extensive commercial night flying, he conceded when the

performance of the C208 was realized. In 1985 FedEx announced that it would use the Caravan in its

feeder fleet.

The introduction of the Caravan proved invaluable to the FedEx feeder routes, however it was not

long before FedEx was on another search for a new turboprop aircraft that was larger than the Caravan.

FedEx looked at a variety of aircraft.

The demands of the fast growing over-night air cargo business forced FedEx into acquiring Fokker F27-

600s and F27-500s in 1988 for its large turboprop requirement. This aircraft had a 99% reliability of

operation, but was expensive to operate and FedEx began thinking about a future acquisition.


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FedEx required an aircraft sized midway between the Cessna 208 and the F27 (see Figure 1.). FedEx

had two major criteria for the new aircraft: 1) capacity: it had to be able to carry containerized cargo

(i.e. standard AYY or LD3 containers), and it had to allow for 14 Federal Aviation Regulation Part 135

single-pilot operation in order to reduce operating costs.

Figure 1. FedEx Cessna C-208 Caravan and Fokker F27 Friendship Feeder Aircraft

The company studied four potential ways of providing the extra lift. First, FedEx considered adding

more Cessna 208s and F27s to the fleet; second, to order other existing or soon-to-be-produced types;

third, to buy aircraft other than the Cessna 208 and F27; and fourth, to become involved in the

development of an all-new aircraft that met their exact requirements. FedEx quickly decided that none

of the first three options was ideal.

Option one was discarded, because FedEx already flew multiple Cessna C208s and the aircraft were

not able to accept FedExs standardized cargo containers. FedEx did not want to purchase any more

Caravans and wanted to find something with a greater useful load. The Fokker F27 had high direct

operating costs and the supportability of the aircraft was in question, because Fokker was going through

a bankruptcy.

FedEx dropped option two after studying at least 56 aircraft types, including the Chinese-built Harbin

Y-12, the Russian Antonov An-38 and the Czech LET 410/610/710 series of aircraft.


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The majority of the aircraft that FedEx studied failed because of the single-pilot-operation

requirement or because of inefficient cabin volume utilization, which provided no opportunity for

containerization. The parcel carrier eliminated the non-Western aircraft choices because it was worried

about the aircrafts product support. Which left the last option of turning towards manufacturers for a

clean-sheet design.

In October 1995, Ayres announced that Ayres was pursuing design studies for a PT6A Soloy Pac twin-

engine aircraft known as the Loadmaster. The design, originally a 19 seat commuter aircraft to be

designed under 14 CFR Part 23 for passenger service, had a quick change capability to be converted

into a freighter hauling three LD3 containers. A larger variant of the design that was being offered during

the initial studies at Ayres was capable of carrying 14 parcel containers. Both aircraft would have a

common empennage derived from the Ayres Thrush aircraft, while the smaller of the two designs would

use the Thrushs wing mounted outboard of a wing root extension. The Soloy company was the first to

disclose to the public that FedEx had shown interest in the Loadmaster design and the Dual Pac

propulsion system.

Ayres began designing possible utility aircraft for the FedEx requirement in the early 1990s and gave

his Bushmaster turboprop a second look. After pitching a version of the Bushmaster to FedEx, the parcel

company stated that they did not want another Caravan, which has an 8,000 lb maximum weight, but a

larger aircraft.

Ayres decides to increase the size of the aircraft and its payload for a gross weight of 12,500 lbs,

which is the FAAs maximum allowable for a single engine aircraft. FedEx still was not happy and wanted

an aircraft that was large enough to carry its standard cargo containers. Ayres pushed the design up to

19,000 lbs, despite the regulatory requirement.


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The FAA was not willing to relinquish its stance on the ruling of maximum single-engine aircraft

weight, especially after a series of commuter accidents which occurred in the early to mid-1990s. Ayres

then offered the FAA a design that included two engines, but one propeller, driven by a common

gearbox, in order to get around the single-engine limitation. Ayres will later file an application for type

certification with the FAA of the twin-engine single propeller Loadmaster in February 2001.

The designs evolution over its development was heavily influenced by powerplant changes. The

aircrafts propeller diameter was changed to develop more thrust. With the increase in diameter the

propulsion unit had to be positioned on the airframe higher from the ground. This resulted in moving

the cockpit higher, which gives the aircraft an elevated cabin. The fuselage design was frozen at its

minimum size to reduce weight while still accommodating the LD3 containers.

The Loadmaster exceeded its cargo capacity requirement of being less than FedExs Fokker F27. The

designer tried to produce an airframe that was less than 50% of gross weight. He achieved an airframe

weight that was 47% that of gross weight. Ayres also designed the aircraft to comply with 14 CFR Part 25

for transport category aircraft instead of Part 23 commuter aircraft. Ayres wanted to be able to utilize

the aircraft in the transport category as modifications and additions to the aircraft would likely result in

weight increases.

The Loadmasters was designed as a high wing aircraft for greater lift. Its increased thickness-to-chord

ratio (20%) allowed the aircraft to have deep spars, eliminating struts, and lowing the aircrafts weight.

The aircrafts stall speed of 70 kts and a maximum of 205 kts allows the aircraft to approach small fields

while being to cruise at a respectable speed. The aircraft was expected to land over a 50 ft obstacle

within 1,745 ft and takeoff in 1,525ft, making the aircraft able to access almost all paved runways in

America.


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The freight aircraft will have forward and aft cargo doors on the standard model. Ayres planned a

future variant of the LM200 with a clam-shell aft cargo door to accommodate a pickup truck or

minivan. (Warwick, 1997) The companys plans were to certify the aircraft for $25 million using two

prototype aircraft.

In December 1996 Ayres announces at the NBAA show in Orlando, Florida that the company has

signed a deal with FedEx for 50 LM200 aircraft, with an option for an additional 200 aircraft over 15

years with first delivery set to begin in December of 1999 (see Figure 2.). The company planned a 30

month certification program, which it expected to start in mid-1997. The first prototype was expected to

fly by the end of 1998.

Ayres envisioned other roles for the aircraft. He expected that foreign countries in remote regions

will be interested in the aircraft as a low cost maritime patrol aircraft or firebomber. Ayres had not

negotiated with any other group that showed an interest in the Loadmaster, but he believed that the

world was his market, considering that no other manufacturer had any aircraft that could compete

directly with the Loadmaster.

Figure 2. Fred Ayres and the LM200 at NBAA 1996 (Courtesy of Flight International)

A 1/8th scale wind tunnel model of the Ayres LM200 with revised main undercarriage, in order to

reduce drag, was developed to test refinements being made to the overall aerodynamic configuration.


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The company considered replacing the automotive style strut gear with a trailing beam type housed in

an aerodynamic fairing.(Warwick, 1997)

About this time Ayres was considering an alternative engine type to the LHTEC T-800. The company

was looking at offering a Pratt & Whitney Canada/Soloy Twinpac propulsion system, which would have

different center-of-gravity locations and require the Pratt & Whitney engines to be moved 11.8 inches

(300mm) further back on the aircraft.

Figure 3. LHTEC T-800 Turboshaft Engine and model of Loadmaster at Paris Air Show. (Courtesy Flight International)

In the meantime Ayres was pursuing certification of the Turbo Thrush 660 aircraft with a production

of 70 agricultural aircraft by the end of 1997.

The Ayres Loadmaster design features two LHTEC (AlliedSignal/Allison) CTP-800 turboshaft engines

driving one six-bladed propeller through a Westland combining gear shaft. Ayres signed an agreement

with Allison in mid-1997 to cover the supply of 100 LHTEC CTP800-4T engines for the LM200. At the

same time Ayres selects the Honeywell SPZ-5000 integrated avionics system for the freighter, which


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includes the IC-500 Integrated Avionics Computer, Honeywells Primus II navigation/communications

radios, and the Primus 440 color weather radar.

Ayres considered the requirements of a single-engine cargo aircraft in other countries where FedEx

might fly the Loadmaster. For the aircraft to be operated in Europe the single-pilot instrument-flight

regulations for commercial aircraft would have to be relaxed there. Other countries that were modeled

after Europe aviation regulations may also prove challenging.

In July 1997 Ayres announced 10 additional orders for the LM200, which expanded its total orders to

67 aircraft. The additional order came from Corporate Air, a Montana-based company which operates

90 aircraft under contract with FedEx, flying Cessna 208 Caravans and Shorts 360s. Corporate Air has an

option for 20 more aircraft. At this time Ayres has 50 orders from FedEx, 10 for Corporate Air, five for

Dutch operator Duijvestijn Aviation (with an additional option of five more), and South Africas Orsmond

Aviation, which has ordered two.

In August of 1997 Allison completes design work on the CTP-800 engine and selects a 3 bladed

Hamilton propeller system to pull the aircraft. Allison recognizes that Ayres is on an aggressive

schedule and tries to order parts for a completed engine systems test in the second quarter 1998.

The contract for the initial engine is with Ayres, however an identically configured propulsion system

is planned to be delivered to FedEx under a separate contract with the parcel carrier. Allison believes

that they should have no trouble with the gearbox for the Loadmaster. Weve got real confidence in

the gearboxwe have got the three (Allison, Allied Signal and Westland manufacturers) best minds in

the world working on it, said Don Christiansen, Allison CPT800 engine manager. (Norris, 1997)

FedEx supplemental aircraft operations division had worked closely with Ayres to keep the project's

costs down. They were sensitive to capital requirements for development of the aircraft. FedEx spent $1

billion (in capital projects) a year - as much as UPS, which is twice the size in 1997 - and there was a


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significant level of competition for capital within the company. FedEx would fly its Cessna 208s for just

one and a half hours a day and their F27s just over two. The turboprops were not getting the utilization

that FedEx turbojet did. Transporting four LD3 containers using the economy of the LM200 was its

saving grace (see Figure 4.).

Figure 4. Model of Loadmaster receiving a load of four shipping containers. (Courtesy of Flight

International)

In an effort to reduce costs FedEx negotiated a volume powerplant buy with LHTEC. FedEx

approached the UK helicopter manufacturer, Westland, to arrange a similar buy for its gearboxes. This

negotiation strategy continued with all of the other FedEx subcontractors.

To secure a lower price FedEx promised each manufacturer a sole-source, long-term contract to and

will supply the major components to Ayres as buyer-furnished equipment rather than having to accept

any manufacturer's mark-up.

The cargo carrier also established a program office staffed by its own engineers to conduct oversight

on the certification process and keep certification costs down, although the Loadmaster will be


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certificated under Ayres' own type certificate. FedEx needed the Loadmaster and it worked to see that

the dedicated cargo aircraft would fly in its fleet before any other parcel carrier.

The publics response to the unattractive shape of the Loadmaster design, which had been called a

whale and one of the ugliest planes in the world, received a tongue and cheek response from FedEx

engineer Guy See, saying, one of the ten ugliest aircraft in the industry, but we dont care, and seeing

as it flies at night, no one will see it anyway. (Flight International, 1997)

Figure 5. Ayres LM200 Loadmaster (Courtesy Janes Information Group)

FedEx, eager to have the most economical aircraft for its routes, approaches Israeli Aircraft Industries

(IAI) and Ayres about building a larger aircraft dedicated to air cargo, which would be designed to

replace the Fokker F27. Ayres, building the Loadmaster, which is designed to fit in between the Caravan

and the F27, is asked about a growth version. This growth version would be on the order of $10 million

per aircraft and carry five standard FedEx containers up to 970 nautical miles. The Loadmaster is

designed to carry only four half-sized containers.


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In lieu of a completely new aircraft, FedEx asked Ayres if a stretched version of the Loadmaster could

be built. The new FedEx concept aircraft is said by Fred Smith, founder and chairman of the parcel

carrier, not close to a launch decision. These are only concepts. (Lopez, 1997)

In the early part of 1998 Ayres looked at locations that could conduct final assembly of the

Loadmaster. The company evaluated sites in Americus, Georgia and Dothan, Alabama. Ayres selected

Dothan, because it possessed a skilled work force and the city offered a $4 million incentive.

Ayres was beginning to move very quickly on the Loadmaster design and began approaching various

manufactures that could complete detail design work on the aircraft. In April of 1998 Ayres announced

that Fairchild Dornier would be contracted to design the fuselage, while the wing and tail subcontractor

was yet to be named. Ayres sought manufacturers in the US, but no cost effective design firm stood out.

Ayres needed an aircraft manufacturer with experience that could build the wings and empennage

for the Loadmaster and found that the Czech Republics Let Kunovice aircraft company was very well

suited to the task and began contractual arrangements for the company to build Loadmaster

components.

In late April the Czech government approves the deal for Ayres to buy Let Kunovice. The US

government is slow to approve the sale, approving the purchase in September of 1998. Ayres then

became owner of 93.6% of Let and assumed the companys long-term debt. Ayres bought the shares

that were being held by Aero Holdings and the Czech state owned bank, Konsolidaeni. The remainder of

the shares are left in the hands of a small group of shareholders, which each own about 1%.

Ayres purchased the company, because of Lets 19-seat L-410/420 and the 40-seat L-610G aircraft,

would complement the Ayres product line of rugged utility aircraft. Ayres planned to manage product

support, sales and marketing activities for both Lets and Ayres aircraft. The L-410 shared the same


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vertical stabilizer and L-610 the wing, of the Loadmaster. Let would also manufacture the turbine air

inlet cover and the aft section of the fuselage of the LM200.

The L-610G was a westernized version of the L-610, with western avionics. The aircraft was originally

designed for a requirement released by the former Soviet Union as a replacement for the Antonov An-

24. After the collapse of the Soviet Union, Let planned to offer the aircraft with western avionics to

widen its market. Ayres changed the name of the L-610G to the Ayres 7000 and demonstrated the

aircraft in the US. Ayres believed that its combined sales with Let would exceed $100 million.

In August of 1998 FedEx secures a deal with Pan Am International Flight Academy to provide flight

training for its LM200 Loadmaster pilots. The Academy planned to build a training center at the FedEx

hub in Memphis, Tennessee, and to house a Level D full-flight simulator for the aircraft. The simulator

would be manufactured by Virginia-based Intelx and the data package by Kohlman Systems Research.

In May of 1999 FedEx converted 25 options to firm orders for the Loadmaster, bring FedExs order to

75 aircraft and 175 optioned aircraft. Deliveries for FedEx are planned at two a month from the Dothan

assembly line. The Loadmaster airframe was approximately 8 months from completion (see Fig 6.) and

the engineering toubles in the gearbox and with the LHTEC engine were beginning to be resolved.

Figure 6. Loadmaster cockpit in the Ayres factory.


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The Financial Load of the Loadmaster

By August 2000 the Let aircraft division of Ayres was forced to suspend production, because an

agreement with its largest creditor, Konsolidacni Bank (KoB), which was about to expire. The divisions

1,400 employees were being laid off. Ayres attempted to revive Let by negotiating with the Israeli

Aircraft Industries (IAI) for a partnership in Let. British Aerospace (BAe) Corporation also showed

interest in partnering in Let to construct parts for BAe in Czechoslovakia in order to make the deal more

attractive to the Czech Republic. The aircraft BAe was selling was the Saab Gripen fighter aircraft. IAI,

which had lost several contracts at the time, and who were having difficulty in marketing their own

cargo aircraft, the Airtruck, saw a possible boost from the investment in the Loadmaster in

Czechoslovakia.

The KoB was owed approximately $50 million by Let, and Ayres, having assumed the companys debt

was required to pay the bank back. Ayres was unable to stabilize Let and could not secure financing for

the failing company.

Ayres stopped making payments to KoB in July 2000, when KoB cancelled a stand-still agreement on

debt repayment. A stand-still agreement is a form of hostile takeover defense in which Ayres, on behalf

of Let, acquires a promise from KoB to limit the amount of the payments. At the time the only Let sales

were of the L-410, which was too little to keep the company in business. Ayres could not bail out Let.

Instead it made promises to build greater percentages of the Loadmaster in the Let manufacturing

facility in order to save the factory workers jobs. KoB declared Let bankrupt in October of 2000.

Ayres was beginning to face its own financial problems with the Loadmaster creditors. In September

of 2000 Ayres began seeking additional financing and additional partners to complete the development

of the delayed Loadmaster.


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Advisors, Aero Equity, was retained by Ayres to write a business plan to assist in trying to attract

more equity investors. The company had enough capital to get the aircraft through certification, but not

enough to begin production of the aircraft afterward. In order to continue with FedEx support, FedEx

wanted to see a viable business and technical plan, that addressed Ayres effort to get the Loadmaster

back on track to construction, testing, and production.

The Triumph Group, who were to integrate the LHTEC engines into the Loadmaster, promised to

deliver the engines by December 15, 2000. The engine was not pacing the speedy airframes

development schedule. When Let went bankrupt in October Ayres would have to find another wing and

empennage manufacturer for its Loadmaster. Fred Ayres suggested to his creditors that they could find

relatively low cost manufacturers in Poland or Romania.

The drain on the companys finances was becoming unescapable. In late November 2000 Ayres files

Chapter 11 bankruptcy protection. GATX Capital provided Ayres with an initial infusion of debtor-in-

possession (DIP) financing to allow work on the Loadmaster to resume after a stoppage of work

occurred due to Ayes running out of money. GATX Capital, based in San Francisco, is a subsidiary of

Chicago-based GATX Corp., a specialized finance and leasing company that focuses primarily on railroad,

commercial aircraft and marine assets. As a financial firm, GATX Capital has no intention of operating as

an OEM.

Ayres needed $80 million to resolve its debts and allow for Loadmaster work to continue. GATX

Capital was adamant that the only reason they were continuing to finance the Loadmaster was because

FedEx was still behind the aircraft. FedEx was remaining supportive, but had doubts about Ayres

success.

At this point Ayres intends to fly the Loadmaster in the third quarter of 2001 and begin deliveries in

the first or second quarter of 2003. The aircraft is now four years behind schedule and Ayres owed GATX


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$22 million. GATX believed that the program was too much for Fred Ayres to control and would only

provide DIP financing if he stepped down from the helm of the company. Ayres reluctantly stepped

down and took up a position of sales and marketing of the Loadmaster and the L-610G.

The air cargo market for the first two quarters of 2000 were dismal for FedEx due to a weak US

economy. It was then that FedEx planned to curtail some of its aircraft conversion programs. After

analyzing the Loadmaster financial problems and the projected difficulties with the economy, FedEx

terminated their commitment to the Loadmaster program and wrote off the $9 million in deposits paid

to Ayres.

Despite the termination, FedEx expressed that if the aircraft was manufactured that they would still

be interested in the aircraft as a buyer, but not as its developer. FedEx told potential Ayres investors

that they were still interested in the aircraft, making Ayres a potentially good investment.

On August 7th 2001 a bankruptcy auction was held on the Ayres Thrush product line and the

Loadmaster program. Five potential buyers came forward for acquiring all of the Ayres assets, and three

others were interested in just the Thrush product. GATX formed Crown Aerospace in order to legally

take over the assets of Ayres to sale them without the burden of debt. The companys debt would

remain with Ayres who was now facing legal troubles on the ownership of the engines of Lets L610G,

that Ayres was to market in the US as the Ayres 7000, as the engines were from US manufacturer

General Electric. Ayres also faced a law suit involving Pan Pacific, a commuter airline that went out of

business after placing orders with Let for its L-410s, which Ayres was responsible for. Pan Pacific

claimed that the delays on the L-410, due to work stoppage for the Loadmaster, and the eventual

bankruptcy of Let, caused the commuter airline to go under.


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The Legacy of the Loadmaster

FedEx in late 2002 searched for a Loadmaster replacement. They focused on the Saab 340, the ATR42,

and the BAe ATP. FedEx was still looking for a turboprop cargo aircraft that could still transport its

standardized containers with the capacity of the Loadmaster. Only the converted ATP and ATR with

cargo door kits, priced at $1 million installed, were FedEx only options.

Continental Airlines was planning the retirement of its ATR42s and FedEx saw that as an opportunity

to acquire a number of the aircraft at a low price. The ATR freighters were planned to be used on short

routes in areas where surface transportation was not expedient to fulfill the role the Loadmaster had

intended.

Figure. 7 FedEx ATR42 Air Freight Aircraft

GATX parted and sold the product lines of the Ayers Corp. to different buyers. The Thrush agricultural

aircraft line went to Larry Bays, former Mayor of Albany, Ga, and US Army helicopter pilot, while the

rights to the Loadmaster was sold to Canadian businessman Adam Sanford. There is no interest in


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reviving the Loadmaster program, however the unique niche market between the Caravan and the F27s

cargo capacity for a dedicated air cargo aircraft has not been filled, and FedEx continues to use the

Caravans under contract carriage today.


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REFERENCES

Baron, Roger. Flight International Editorial, Surrey, UK, 5 November 1997, pg. 44

Federal Express: New Aircraft and Electronic Mail. Flight International, Surrey, UK, 25 September 1982,

pg. 910

Janes All the Worlds Aircraft 1999-2000. Janes Information Group, London 2000

Lopez, Ramon. FedEx Opens Talks in Hunt for Fokker F27 Successor. Flight International, Surrey, UK, 19

November 1997, pg. 8

Norris, Guy. Flight International, Surrey, UK, 6 August 1997, pg. 17

OConner, William E. An Introduction to Airline Economics, 6th Ed. Praeger. Westport, Connecticut. 2001

Warwick, Graham, Master of the Loads. Flight International, Surrey, UK, 3 September 1997, pg. 29


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APPENDIX A

AYRES LM200 LOADMASTER (Description Courtesy of Janes Information Group 1999)

TYPE: Twin-engined utility transport.

PROGRAMME: Design officially launched 1996, following considerable detail redesign (see 1996-97

edition); Federal Express announced as launch customer November 1996; contract placed in 1997 for

LHTEC to deliver 100 power plants from May 1999 onwards; three prototypes to be built at Albany.

Production line started at Dothan, Alabama; Let is building wings and tail unit subassemblies in Czech

Republic, and was due to deliver first sets in December 1998. First flight due early 1999; certification to

FAR Pt 135, for single pilot operation, mid-1999; first deliveries by October 1999.

CURRENT VERSIONS: LM200: Civil version; as described. Applications include container freighter and

passenger version carrying 19 passengers at ordinary seating pitch or 34 in high-density. Firefighting and

long-range patrol variants also under consideration.

Searchmaster: Proposed remote earth sensing aircraft; two operators' consoles in cargo hold.

LM250: Military freighter, described separately.

CUSTOMERS: Ayres foresees sales of 600 aircraft by 2010. Federal Express signed letter of intent for 50,

plus 200 options, in November 1996. By mid-1998, additional orders received from Corporate Air of

Montana (three, plus 20 options); Duijvestijn Aviation, Netherlands (five, plus five options); Orsmond

Aviation, South Africa (four); and WestAir of Fresno, California (two). Order book stood at 75 in late

1998.

COSTS: Basic price US$4 million to US$5 million (1999).

DESIGN FEATURES: Meets requirements of mixed freight operators seeking aircraft sized between

Cessna Caravan and Fokker F27/50. Single-propeller configuration, but circumvents several countries'

prohibitions of single-engine commercial night flights by employing two linked turboshafts. Shoulder-

wing design, with constant chord centre-section and tapered outer panels with outward-canted

endplates. No cabin windows on freight version. ALM 201 wing section; thickness/chord ratio 20 per

cent at root, 13 per cent at tip; taper ratio 0.4; dihedral 1 30'. Rudder, cockpit fittings, control wheels

and engine inlets from Let L-410.

FLYING CONTROLS: Conventional and manual. Actuation by pushrods and cables. Electromechanical

single-slotted, three-position flaps. Trim tabs in starboard aileron, rudder and both elevators.

STRUCTURE: All metal, semi-monocoque fuselage with aluminium alloy skins, having clad aluminium

frames and stringers. Two-spar wing with integral fuel tank; spars at 20 and 63 per cent chord.

Aluminium alloy leading-edge skins; composites wingtips. One-piece horizontal stabiliser constructed on

two full-span spars. Special protection against corrosive cargo.

LANDING GEAR: Fixed tricycle type, with sponson-mounted trailing-link main gear having oleo shock-

absorbers and differential three-rotor `tri-metallic' brakes from Aircraft Braking Systems, which also

provides wheel assemblies. Parking brake; nosewheel steerable 75. Mainwheel tyres 28 9.00-12,


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pressure 6.76 bars (98 lb/sq in); nosewheel 18 5.50-12, pressure 6.27 bars (91 lb/sq in). Ski, float and

retractable landing gear are under consideration.

POWER PLANT: One 2,013 kW (2,700 shp) LHTEC CTP800-4T `twin-barrel propulsion system' of two in-

parallel coupled engines, each with FADEC, driving a six-blade Hamilton Standard 568F-11 constant-

speed propeller through a GKN Westland combining gearbox. A `hot and high' version using T801 engine

is being considered. Fuel tanks in wings, combined capacity 3,407 litres (900 US gallons; 749 Imp

gallons). Single pressure refuelling/defuelling point in starboard sponson; optional gravity defuelling.

ACCOMMODATION: Pilot and optional co-pilot and observer on flight deck. Four LD3 or Demi freight

containers, plus general freight. Four cargo areas: Main, comprising constant section of fuselage; Upper,

behind flight deck; Forward, below flight deck; and Aft, in tailcone. Main area contains four seat tracks

for total of 34 passengers, or 19 passengers and bulk cargo. Cabin windows and two emergency exits

optional. Crew and passenger door forward of wing, port side, gives access to forward cargo area, flight

deck (via ladder) and main area. Main freight door, port side, aft of wing; aft baggage door, starboard

side. Internal door on passenger version (optional for freight version) between forward cargo area and

main hold. Flight deck side windows are hinged at top for ground ventilation and emergency exit.

Accommodation ventilated and heated; air conditioning optional.

SYSTEMS: Electrical system 28 V DC, powered by two engine-driven 400 A starter/generators; two 24 V

43 Ah lead/acid batteries. Optional 24 V battery for cargo hold lighting. Ground power inlet, port side

rear, 28 V DC. Hydraulic system, 138 bars (2,000 lb/sq in), powers mainwheel brakes and nosewheel

steering; electric pump. Fire detection and suppression system in each engine compartment.

Environmental system of cargo version comprises outside air ventilation for cooling, and either engine

bleed air or electric elements for heat; optional vapour cycle air conditioning. Passenger version has

engine bleed air heat and vapour cycle cooling with automatic temperature controls. Pneumatic rubber

de-icing boots on wing and tail leading-edges; electric heating of propeller blades, engine air inlets and

windscreens for flight into known icing.

AVIONICS: Honeywell SPZ-5000 as core system.

Comms: Primus II system including two RCZ-851G com units and RM-850 radio management unit.

Radar: Primus 440 weather radar antenna on starboard wing leading-edge.

Flight: IC-500 autopilot, ADC-3000 air data computer, AT-300 radio altimeter, AH-800 AHRS and

dual AlliedSignal KLN 900 GPS. Optional TCAS 2000.

Instrumentation: Two ED-600 127 127 mm (5 5 in) CRT displays.

EQUIPMENT: Ball-mat cargo handling floor; cargo restraints around floor.

DIMENSIONS, EXTERNAL:

Wing span 19.51 m (64 ft 0 in)

Wing chord: at root 3.12 m (10 ft 3 in) at tip 1.24 m (4 ft 1 in)

Wing aspect ratio 8.9


24

Length overall 19.61 m (64 ft 4 in)

Height overall 7.00 m (22 ft 11 in)

Tailplane span 8.13 m (26 ft 8 in)

Wheel track 4.57 m (15 ft 0 in)

Wheelbase 5.69 m (18 ft 8 in)

Propeller diameter 3.91 m (12 ft 9 in)

Freight door: Height 2.11 m (6 ft 11 in) Width 1.88 m (6 ft 2 in)

Aft baggage door: Height 1.07 m (3 ft 6 in) Width 0.76 m (2 ft 6 in)

DIMENSIONS, INTERNAL:

Main cargo area: Length 6.73 m (22 ft 1 in)

Width at floor 2.28 m (7 ft 5 in)

Max width 2.54 m (8 ft 4 in)

Max height 2.40 m (7 ft 10 in)

Floor area 15.3 m2 (165 sq ft)

Volume 38.2 m3 (1,350 cu ft)

Upper cargo area: Volume 2.3 m3 (80 cu ft)

Forward cargo area: Volume 7.1 m3 (249 cu ft)

Aft cargo area: Floor area 4.1 m2 (43.7 sq ft)

Volume 9.2 m3 (325 cu ft)

AREAS:

Wings, gross 42.55 m2 (458.0 sq ft)

Ailerons (total) 4.33 m2 (46.60 sq ft)

Trailing-edge flaps (total) 8.53 m2 (91.80 sq ft)

Fin 4.65 m2 (50.00 sq ft)

Rudder, incl tab 2.45 m2 (26.40 sq ft)

Tailplane 9.25 m2 (99.60 sq ft)

Elevators (total, incl tabs) 2.36 m2 (25.40 sq ft)


25

WEIGHTS AND LOADINGS:

Weight empty, equipped 4,082 kg (9,000 lb)

Max payload 3,946 kg (8,700 lb)

Max fuel weight 2,735 kg (6,030 lb)

Max T-O and landing weight 8,618 kg (19,000 lb)

Max ramp weight 8,704 kg (19,190 lb)

Max wing loading 202.5 kg/m2 (41.48 lb/sq ft)

Max power loading 4.28 kg/kW (7.03 lb/shp)

PERFORMANCE (estimated):

Never-exceed speed (VNE) 231 kt (427 km/h; 265 mph)

Max cruising speed 205 kt (380 km/h; 236 mph)

Normal cruising speed 180 kt (333 km/h; 207 mph)

Econ cruising speed 153 kt (283 km/h; 176 mph)

Max rate of climb at S/L 567 m (1,861 ft)/min

Max certified altitude 7,620 m (25,000 ft)

T-O to 15 m (50 ft) 465 m (1,525 ft)

Landing from 15 m (50 ft) 532 m (1,745 ft)

Range: with max payload 280 n miles (518 km; 322 miles) with 1,814 kg (4,000 lb) payload 1,590 n

miles (2,944 km; 1,829 miles) ferry 1,630 n miles (3,018 km; 1,875 miles)

g limits +2.9/1.1


26

APPENDIX B

Size comparison of the Ayres LM200 (top); Shorts 330 (middle); and Cessna Caravan (bottom). (Courtesy

Internet: Secret Aircraft Projects)

Ayres Corporation Logo.

Documents

Ayres Loadmaster DSU Case Study