Dimor Group Sheds Light on Reasons for WACO Shutdown

Company states classic biplanes succumbed to rising costs and falling demand.

WACO YMF-5 [Credit: WACO Aircraft]

I was fueling at my home airport a couple of summers ago when a WACO YMF-5 taxied up to wait for its turn at the pumps. It was gorgeous—black fuselage, yellow wings, and Jacobs engine idling so slowly that I could count the blades.

Almost.

I snapped a photo and texted it to my wife, with the message, “Want one!”

Later, over dinner, she wondered aloud, skeptically, about how big the market for such a niche aircraft could be. It was an insightful question. This week we received the answer—not big enough.

Official Statement

Dimor Group, the German company that acquired WACO Aircraft Corp. in 2018, released a statement following the April 28 shutdown of WACO’s manufacturing and maintenance operations at its Battle Creek, Michigan, facility. The company cited a lack of demand among its reasons for shuttering the business.  

“This decision was reached after careful deliberation. Rising production costs, coupled with ongoing limitations in market demand, rendered continued U.S. production unsustainable,” Dimor said in its statement. “Consequently, approximately 60 positions will be affected by the cessation of manufacturing operations in Battle Creek.”

Junkers A60 [Credit: Dimor Group]

Dimor added that while it will stop manufacturing its flagship WACO YMF-5 and the smaller, less expensive Great Lakes aerobatic trainer, production of its newer Junkers A50 Junior, A50 Heritage, and A60 light sport aircraft will continue in Germany.

Surprise Ending

People familiar with the company’s operations told The Aviation Consumer that employees received an email message around Tuesday evening, not long after finishing work for the day. The message said they should not return on Wednesday.

“After exhausting every possible path to keep our operations running, ownership has made the painful decision to cease the aircraft production and maintenance services operations U.S., effective immediately,” the message read.

The abrupt factory closure came as a surprise to many pilots, WACO customers, and even the company’s employees. Some said they did not see the end coming.

The business looked healthy on the surface. WACO Aircraft exhibited at the Sun ’n Fun Aerospace Expo in Lakeland, Florida, earlier in April, and the company had promoted several aviation events on its website.

WACO manufactured a wide range of open-cockpit and cabin biplanes during the 1920s and ’30s. Nostalgia for this golden age of aviation helped to drive enthusiasm for the brand, which reemerged during the 1980s.

Jonathan Welsh

Jonathan Welsh is a private pilot and lifelong aviation enthusiast who has been a reporter, writer and columnist for 35 years. His career includes stints with the Wall Street Journal, Flying Magazine and the Aircraft Owners and Pilots Association. He recently returned to Firecrown to lead Aviation Consumer.