Boisture: "Market Is Not Improving As We Had Hoped"

Hawker Beechcraft CEO Bill Boisture announced late last week that the company plans to lay off 350 salaried employees, citing continued sluggishness in the economy. "(T)he market for new production aircraft is not improving as we had hoped," Boisture said in a letter to employees, which nearly echoed remarks from Cessna CEO Jack Pelton announcing layoffs at that company earlier in the week..

The letter says large-scale layoffs of hourly workers are not expected at this time, but that furloughs may be necessary or there may be a few hourly jobs lost. HBC is currently in contract negotiations with its machinists.

But television station KWCH reports that there are also rumors around town that HBC may pull up stakes from Wichita entirely and move its operations to Baton Rouge, Louisiana. The International Association of Machinists (IAM) says it believes HBC will be staying in Wichita, and the company would only say that no decision has been made.

Hawker Beechcraft CEO Bill Boisture

The move by HBC brings the number of aviation-related layoffs in Wichita to over a thousand in just the past week. Cessna said on Tuesday that it plans to lay off 700 workers, citing the same economic conditions and industry sluggishness as HBC. And the effects of the job losses go beyond the individuals who are looking for work. The station said, for example, that even those who keep their jobs are concerned about the future, and don't borrow money or spend it.

The layoff notices at HBC are expected to go out by November 1st.

FMI: www.hawkerbeechcraft.com