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Sun, Nov 19, 2006

More Hailstorm Fallout: Columbia Inventory Glut Means Cut Hours For Staff

Hailstorm Has Lasting Repercussions For Oregon Planemaker

Mother Nature's revenge continues. Columbia Aircraft will cut hours for some 400 employees effective November 27.

A company executive told the Bend Bulletin the cuts will take off six to eight hours per week for factory and staff workers in a variety of positions.

Columbia says the cut backs are a direct result of overages in its inventory stemming from this past summer's hailstorm where some sixty aircraft were damaged. Many of those sixty planes were set to go to customers, but instead have been undergoing repairs. Those repairs are now complete.

The company said it pulled 20% of its workers off the line to help with the repairs which slowed production somewhat, but the quick effort to get the repairs done has actually created an inventory overage.

Columbia says in looking for ways to balance production with inventory, it was either cut back hours or lay workers off.

Columbia vice president Ronald Wright told the Bulletin, "We don't like the idea of this happening during any holiday. But this was absolutely necessary."

The company expects the situation to continue only for a few weeks until sales can catch up with inventory. Current estimates have all workers back to normal hours by New Years Day.

Columbia recorded record sales in 2005 with projections to equal them this year. Of course, those projections were made before the hail storm...

FMI: www.flycolumbia.com

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