This sucks for the families who will be impacted negatively by this sale in North Carolina. Hopefully they can get something else going. –Matt
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Planned sale of Xe company likely to mean loss of jobs in N.C.
By Jeff Hampton
April 4, 2010
Currituck and Camden counties, already struggling with high unemployment, could lose 240 more jobs after the sale of an aviation company operated by a private military company.
AAR Corp. announced last week plans to buy Aviation Worldwide Services for $200 million from Xe Services LLC, the company formerly known as Blackwater Worldwide.
AWS operates a fleet of 58 customized aircraft, including fixed-wing airplanes and helicopters. Of the 540 employees working for AWS, 240 are based at the Moyock complex known as the U.S. Training Center, AAR spokesman Chris Mason said.
Eventually, employees and aircraft based in Moyock would be relocated, Mason said. According to tax records, Presidential Airways, a subsidiary of AWS, keeps just one aircraft at the training complex and one at the Elizabeth City airport.
The complex of about 7,000 acres straddles Currituck and Camden counties and offers training and practice in marksmanship, anti-terrorism tactics, VIP convoy protection and SWAT team operations, among other things.
Over the years, Blackwater has been among the largest private employers and taxpayers in both counties.
Entrance to the training center goes through Puddin Ridge Road from N.C. 168, about a mile south of the Virginia line. Clients and workers regularly shop, eat and buy gas in the community of about 6,000 people.
“You take 240 people out of this economy and that’s 240 people not spending money in the community,” said
Eldon Miller, owner of E.L. Miller III and Sons Heating and Cooling.
Other local business owners share his concerns.
“That’s a lot of people,” said Shelby Wolf, owner of Ace in the Hole Tattoo studio. “We do a whole lot of work for people from Blackwater. There have been several just in the last couple of weeks.”
Neither the state Department of Commerce nor the county has specific research on the e ffects of job losses in a small community like Moyock.
“It’s really hard to put a number on it or to put an impact on it,” said Peter Bishop, economic development director for Currituck County. “We’re definitely going to have an impact, we just don’t know what that’s going to be.”
In January, Currituck had an unemployment rate of 10.4 percent, the highest since 1983. Camden County’s January unemployment rate was 9.2 percent.
Since 2005, Presidential Airways has flown more than 70,000 missions worldwide, transported 270,000 personnel, and delivered 50 million pounds of cargo and mail, according to a release from AAR Corp.
In 2008, Blackwater laid off an unspecified number of employees after failing to get the contract to build the Grizzly, an armored vehicle. Blackwater officials said the company employed 52 workers at a 70,000-square-foot Grizzly manufacturing facility in Moyock in 2007. Blackwater became Xe Services LLC in February 2009.
That layoff had a significant effect, said Currituck County commissioner and Moyock businesswoman
Janet Taylor.
“This is going to have a big impact like it did the last time,” she said.
Taylor said the Navy could buy the complex and use it in support of a proposed airfield for jet carrier landing practice.
“That’s one of the first things I thought when I heard about this,” she said.
Xe spokeswoman Stacy DeLuke said she was not aware of plans to close the U.S. Training Center.
On March 15, Xe officials attended the Currituck County commissioners meeting to renew for five years a permit to operate the Moyock driving track and firing ranges.
Jeff Hampton, (252) 338-0159, jeff. hampton@pilotonline.com
Story here.