Cites Need To Manage Existing Funds As Company Seeks New Funding

ANN has confirmed with company officials that Adam Aircraft has cut approximately 300 workers from its staff of 800, due to what the company says is a need to conserve existing funds as the planemaker works to overcome past issues with the certification of its A700 very light jet, and obtain capital to see that program through to TC.

"Adam Aircraft Industries is announcing today a strategic adjustment in operations designed to focus on two key objectives: obtain a TC on our A700 jet design and complete our "MPF" initiative," said Adam Aircraft President Duncan Koerbel. "To provide for our future growth, we must be strategic in our focus by managing current cash expenditures to ensure adequate time to secure financing for the long term. We're off to a good start in this effort with assistance from our partner, Citibank, but we need to be able to provide them with sufficient time working with potential investors to secure long term financing."

The layoffs are part of what Adam officials call a "strategic adjustment," that also includes suspension of operations at the company's Ogden, UT facility through early summer. The company will also reschedule completion of the composite lay-up portion of the Ogden facility.

Lay-up and bonding operations for the empennage will be transferred from Adam's Pueblo facility, to Englewood. Machine shop operations will continue in Pueblo, but all other activity will be suspended.

"We regret that these actions will result in a layoff for many of our employees, but it is in the best interest for the long term success of Adam Aircraft Industries. We have two excellent products in the A500 and A700 with a very strong global market and will continue to move the company forward in achieving our goals."

Adam stressed its long-term objectives remain unchanged... and fully intends to return to normal operations once it clears its current hurdles. The company will retain 'MPF' staff, to make sure the company is ready for full-rate production of Adam's A500 twin-piston aircraft in the summer, and future A700 production.

FMI: www.adamaircraft.com