IASCO, a flight training center in Redding, California which represents more than 50 employees and 100 students who spend their money in our local economy, was going to be relocated to the East Coast, but in the 11th hour, eight local investors purchased the company keeping it here in Redding. The purchasers invested $1 million and local bank, Redding Bank of Commerce, financed the balance.
An announcement was made May 21st, 2012 by John Fitzpatrick, spokesman for the new Board of Directors, that a group of local investors has purchased the fifty-three year old company which has been operating at Redding Airport since 2009. "When it was rumored that this company was for sale and could possibly leave town, we immediately recognized the need to do all possible to keep it and the people it supports in Redding," said Fitzpatrick.
Students at IASCO Flight Training Center Redding, CA
Dave Jensen, President of Redding Distributing Co., will chair a board of eight investors including two previous employees of the company. Jensen said, "We are excited about this company, their history and growth so far at Redding Airport." He adds, "With a strong board and an experienced management team, we see excellent opportunities for continued growth in this aspect of the aviation industry."
Ann Marie Guay at the IASCO Press Conference May 21, 2012
The new company will be led by President/CEO, Ann Marie Guay. Guay has been Vice President and General Manager with the company for the past three and a half years.
The company has contracts with four Chinese airline companies to train pilots for the commercial aviation industry. Currently there are 100 students in training with a capacity to train 120 students per year.
The company owns 34 aircraft and leases 3 others along with flight simulators and classroom training facilities.
IASCO currently employs 56 people with a payroll in excess of $2 million, and also supports another 18 jobs at the airport, with approximately 26 additional jobs in the region dependent on this company.
"This company has been responsible for almost $10 million in annual economic output to the region according to the NoRTEC economic impact modeling system. In addition, the Chinese students training at the facility invest almost $1 million annually into the regional economy in accommodation, food and general spending," said Mark Lascelles, President of the Economic Development Corporation of Shasta County. "This is a remarkable achievement when a group of local investors can step up and purchase one of the oldest flight training schools in the United States, and by doing so keep one of our strategic airport companies from leaving the region. The community should take pride that IASCO Flight Training is now a locally owned company," he said.
Redding Mayor Dick Dickerson at the IASCO Press Conference May 21, 2012
Redding Mayor Dick Dickerson expressed gratitude that these jobs and families will not be displaced and can remain in a community that believes in its future, as evidenced by this action.
The purchase was made possible with a business loan from the Small Business Lending Fund from Redding Bank of Commerce. "We saw an excellent opportunity to support a strong group of investors and keep a good company in this community," said Pat Moty, President of Redding Bank of Commerce. "This Fund is intended to create jobs and promote economic growth in local communities across the nation, and that is exactly what was achieved here."
Victor Clark, Vice President of Redding Jet Center, also an investor, points out the dependency that other airport services have on companies like this that remain in the region. "Their departure would have had an enormous impact on all of the airport businesses," said Clark.
Airport manager, Rod Dinger, concurred, "At a time when we are working to recruit more passenger service to the airport, we must be seen as a strong and vital region."
Redding Airport Manager Rod Dinger at the IASCO Press Conference May 21, 2012
An interesting footnote to this story: Because the business is located within the Shasta Metro Enterprise Zone, the buyers had the additional incentive of Enterprise Zone Hiring Credits to influence their decision to purchase this company and keep it in this region of the state. Enterprise Zones are a State of California economic development program that strives to keep jobs in California.
In addition, the full list of purchasers are:
Chairman of the Board: Dave Jensen (President, Redding Distributing Co.)
President/CEO: Ann Marie Guay (Past VP, General Manager, IASCO)
Secretary/ Treasurer: Ralph Nasworthy (CFO, IASCO)
John Fitzpatrick: (Past President, Pepsi Cola)
Maurice Johannessen: (President, Extol Management Corp)
Al Shufelberger: (President, RTL Inc.)
Paul Ogden: (Past President, Seco Manufacturing Inc.)
Victor Clark: (VP, General Manager, Redding Jet Center)
For the full article in the Redding Record Searchlight click here >>>
For more images of the IASCO Press Conference May 21, 2012 click here>>>