business

A fledgling business dubbed Northern Aero Partners is exploring the possibility of returning aircraft maintenance operations to the former Northwest Airlines base in Duluth.

Tim Barzen, a retired Northwest pilot from Minneapolis, said he is part of a group of eight people -- all with backgrounds in the aviation industry -- who are working to resurrect the facility. The 189,000-square-foot maintenance base opened in 1996 and was closed by Northwest in August 2005.

A portion of the building, now owned by the Duluth Economic Development Authority, already has been put back to use by Cirrus Design Corp., which is developing a personal jet on the premises.

"We'd like to utilize that facility for the purpose for which it was built," said Barzen, describing his interest in using the building to once again service Airbus A320 jets.

Barzen said he and his partners also see an opportunity to capitalize on the talents of some of the former Northwest mechanics who have stayed on in northern Minnesota even after the air base closed.

Northern Aero Partners would expect to employ more than 100 people within one year of beginning operations in Duluth. Barzen believes he and his partners could have a maintenance line up and running in Duluth by the second quarter of 2010, if not sooner.

Barzen believes his company and Cirrus can coexist in the cavernous building, which is too large for either business to fully occupy alone.

"We're working very closely with Cirrus," said Barzen. "If this doesn't work for both of us, we're not interested in pursuing it."

Bill King, Cirrus' vice president of business administration, said he remains open to working with Northern Aero Partners, but he said his company cannot afford to slow its efforts to bring a jet to market. Cirrus expects to introduce its Vision SJ50 jet, selling for around $1 million, by 2013.

Ultimately, however, King said it makes better sense to have A320 jets serviced in the building than to keep Cirrus there.

"Our jet has a 14-foot tail, and right now it's being built in a place with a 90-foot ceiling. It's insane when you think about it," he said.

Rob West, CEO of the Area Partnership for Economic Expansion -- commonly known as APEX -- said he's cautiously optimistic about Northern Aero Partners' plans for the maintenance base.

But he said: "We want to make sure it doesn't interfere or encumber the Cirrus project and its efforts to bring a jet to market."

Northern Aero Partners estimates that it will take about $35 million to launch an MRO -- industry shorthand for maintenance repair and overhaul operation -- in Duluth.

The company has been working with Sens. Yvonne Prettner Solon, DFL-Duluth, and Tom Bakk, DFL-Cook, and Reps. Roger Reinert and Mary Murphy, both DFL-Duluth, to secure bonding funds that could be used to improve the facility by extending fiber optics to it and making it more energy-efficient. Barzen said he expects those improvements to be "relatively small in terms of the total project cost."

Bills were introduced in both the House and Senate on Thursday. Prettner Solon said no specific amount has been requested in the bills.

Barzen said Northern Aero Partners still is putting the finishing touches on its business plan but has been working with several potential investor groups who appear to have a healthy interest.