Thu, Jan 17, 2008
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.
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