About Enstrom What are the odds for the successful introduction of a new helicopter company with no money and a start-up initiated by an industrial machinery salesman with no aviation background and an iron mining master mechanic also with no aviation background - one in a hundred? One in a thousand? Or even more? Well guess what- Jack Christensen did it. Incredible! Despite almost insurmountable obstacles over the years, the Enstrom Helicopter Corporation of Menominee, Michigan is a wonderful story of tenacity and achievement in a very competitive international industry. The understated management skills and key to the amazing scenario is the leadership and charisma of the founder and first president Jack Christensen. So who is this guy? Well, Jack is a Menominee native, born there in 1927. After graduation from high school he enlisted in the U.S. Navy serving as a petty officer at the Great Lakes Naval Facility where he worked in administration with IBM systems for about two years. After being discharged he returned to Menominee and began working for a local company called Northern Hardware Supply as a clerk in order processing. After this and at the age of 20 he took on the responsibility of a manufacturer's representative, handling a line of electric tools. In 1951 Jack and his father started a company called Christensen Machinery and Supply Company. The company handled various industrial
mining machinery and manufacturing carbide tools, selling primarily to iron mine companies and general industry in Northern Michigan.
The company was later sold and is still in operation today. Also in 1951 Jack married his ‘patient and supportive' wife Barbara. They lived in Menominee until just recently when they decided on a smaller home in nearby Marinette, Wisconsin. They have one son, John, who lives in San Diego, CA and one daughter, Carrie Anderson, who lives in Delaware. It was in his role as a machinery and tool salesman for the mining industry that Jack met Rudy Enstrom in 1956. Rudy was a master mechanic who was then unemployed due to the perhaps fortuitous fact that the mine was closed. During their discussion, Jack asked him what his plans were
for the future. Rudy then revealed that he was building a helicopter at home, which was his hobby and passion. He was hoping to find financing for eventual production according to Christensen. Interested in the possibilities, Jack began to discuss the project with many of his machinery customers and friends and was encouraged by their positive reception for the idea. Enthused, Jack and Rudy in 1959 decided to form a company, which was called the R. J. Enstrom Corporation of which Jack was president. This jump-started the process of finding necessary financing and hiring a production team. Fortunately the people of Menominee and adjacent
Marinette came through with funding of about one million dollars. Jack points out that they attracted 9,000
Stockholders at the price of $10.00 per share. Some 90 percent of the funding came from the two local cities with about 10 percent from a variety of sources outside the local area. Interestingly, despite the fact that as the company experienced technical difficulties during early stages of development, the loyal stockholders continued their support, as additional financing was required. Jack wanted to point out that local
community support for Enstrom was
The Birth of Enstrom Helicopters
by Andy Aastad
Enstrom Founder, Jack Christensen, largely responsible for its ultimate success. He is also proud of his record of employee support and a very low turnover. From his tenure beginning in 1959 through 1969 they never missed a payroll. In the operational start-up the first problem was moving Rudy's helicopter from his home basement to the plant. It was necessary to knockdown a basement wall in order to move it. Also in the beginning, finding the right team of employees was a challenge. Jack hired fifteen people initially which included four engineers, a welder, mechanics, sheet metal workers and others, most of whom came from local industries. His chief engineer was Alb Ballauer who had helicopter experience with McDonald Aircraft and rotor blade experience with the Parsons Corporation. Paul Schultz was also hired at the beginning. Paul had his own company manufacturing model airplane kits and also had an aviation background. Bob Bakotich was the third engineer responsible for the successful drive system, and Bob Bretl was responsible for the control system. Jack credits the initial engineering team for the winning design and quality of the F-28 with special accolades for the hard-working Paul Shultz. The F-28 was named product of the year in 1965 by the state of Michigan. The F-28 competed with many products including the brand new Ford Mustang so winning was quite a spectacular achievement. Also in 1965 the F-28 was named the Helicopter of the Canadian Centennial and was flown cross-country from east to west in promotional activity for the centennial.
Back to the start-up. Very early in the game with Rudy Enstrom's hobby helicopter, the tail rotor broke off in the first flight test. The engineering team on further evaluation realized and concluded that the hobby helicopter
was not practical. The lack of aircraft engineering technology was evident and led to a decision not to attempt
another flight. It was permanently grounded and thus it was necessary to begin a complete redesign. The first F-28 prototype employed a semi-rigid rotor system. Unfortunately the system failed in a high-speed flight test resulting in total damage and death of the test pilot whose name was Jim Terrel. This was a major catastrophe for the fledgling company seriously affecting its financial capability. However, continuing financial support from the community materialized and work began on the second prototype. The major design challenge for ship number two was obviously the rotor head. After discarding the idea of an improved rigid rotor system, a fully articulated system proposed and developed by Paul Shultz was adopted. Over the years this system has proved to be highly effective and dependable. New rotor blades were also developed and have earned an outstanding reputation in the many years of operational experience. The Enstrom is well known for its excellent performance.
Back to Rudy Enstrom. He left the company after only one year and opened a small shop producing snow removal equipment. He is now retired and living in Crystal Falls, Michigan. His contribution to the helicopter industry was catalytic and unquestionably fruitful. FAA certification for the F-28 is another very interesting facet of the Enstrom story, which began early on in 1959 with Bob Bakotich and Bob Jenny as members of the team. Both originally agreed to participate on a temporary basis through FAA certification. However, Jack points out that they both were so impressed with the company, its esprit de corps, and loyal community support that they stayed on and when reaching the age of 65 retired locally. Because of the accident with the first ship and the time it took to redesign number two, certification was not completed until 1965. The cost of certification compared with today's standards seems unbelievable. It was only $1,300,000, which included the cost of the first three helicopters. Those were the good old days. Production followed shortly thereafter with a total employment of 57 in January of 1967, producing one helicopter a month plus parts. FAA certification of an improved F-28A model, with increased power from 180 to 205 HP, was received in May 1968. However, as might be expected, growth of the company and expanding financial requirements dictated the need for additional capital, beginning in 1967. In October 1968 the capital requirement was satisfied by a deal with the Purex Company who purchased 90 percent of the outstanding stock. Operating as part of the Pacific Airmotive group of companies owned by Purex, Enstrom was now back on track. An interesting footnote to this story was that John Meyers, Chairman of Pacific Airmotive had earlier purchased an F-28 for helicopter training purposes. Knowing that Meyers was happy with the product, Jack approached him about the possibilities of acquisition. Meyers increased Production of Helicopters
However, Pacific Airmotive insisted was interested and took the proposal to Purex management for approval, which he received with the understanding that Enstrom would report to Pacific Airmotive rather than directly to Purex. That decision may have been responsible for future problems. Infusion of new capital allowed Enstrom to acquire additional equipment, floor space, and personnel, which sharply on the development of a turbine-powered helicopter, which was initiated almost immediately. The result was the emergence of the T-28, essentially utilizing the F-28A aircraft with a turbine engine. Actually the development engine was a Garret Air Research auxiliary power unit popular at the time with the airlines. Unfortunately, the new program was complicated and generated a substantial increase in expenditures, which was a big problem for a relatively small company not yet producing a significant income.
Increasing costs attracted the attention of Purex management who by 1970 directed Pacific Airmotive to take over the management of Enstrom according to Christensen. This requirement was one that Christensen could not accept and thus he submitted his resignation. That left a void, which was almost the demise of the company. A period of time followed in an effort to sell the company, which culminated finally when Enstrom was acquired by F. Lee Bailey. During the interim period the COO Marty Vale was named Vice President. Marty had been
hired as Production Supervisor after his retirement from Bell Helicopter Company. As explained by Christensen, Bailey's interest grew from the fact that he owned an F-28 and also because he became aware of the opportunity while he represented another party interested in acquiring Enstrom. When his client's interest
Was terminated, Bailey advised Christensen that he was interested in buying Enstrom. His negotiation with Purex resulted in an agreement, and Bailey became the new owner in January 1971. Christensen returned to management and was responsible for rehiring the many employees who had been laid off. Christensen
continued in Enstrom management until retirement two years later. F. Lee Bailey finally sold the company in 1979 and Enstrom has experienced two ownership changes since then. However, despite ownership changes, the dedicated, experienced workforce and management of Enstrom have continued to generate a slow but steady growth under the capable leadership of Chairman Bob Tuttle and President Jerry Mullins. Today the F-28, 280, and 480 lines of helicopters, totalling over 1,200 are operating worldwide and demand continues to be positive. The future looks bright for Enstrom, its employees, and the loyal community which provided so much support
in the early days. The legacy of Jack Christensen is secure and will be remembered both by the Menominee local community and the helicopter industry as an outstanding achievement.
ANDY AASTAD is the former editor of the helicopter market letters and currently a market consultant to the helicopter industry. He can be reached at 252-635-5015 or aastad@suddenlink.net.
aboutsalesgalleryhiretrainingservicelinksnewscontact
Year of Manufacture 2003
280C