Agreement With State Announced Tuesday
Hawker Beechcraft Corporation (HBC) has reached a formal
agreement with the State of Kansas that significantly incentivizes
the company to maintain its presence in Wichita over the next 10
years. Chairman and CEO Bill Boisture and Kansas Governor Mark
Parkinson announced the agreement Tuesday alongside Wichita Mayor
Carl Brewer and Sedgwick County Commissioner Karl Peterjohn at an
event at the National Center for Aviation Training. The
State’s incentive package requires Hawker Beechcraft to
maintain its current product lines in Wichita and retain at least
4,000 jobs over the next 10 years.
Bill Boisture
“Today’s announcement marks a key point in the
future of Hawker Beechcraft,” Boisture said. “With the
acceptance of this agreement, we are committing to be successful as
a Wichita, Kansas, and U.S. based private company and preserving a
valued American industry in tomorrow’s aviation markets. With
the strong level of commitment to our people and their skills
enhancement, we intend to have the best trained work force in the
industry to power the development, manufacturing and projection of
our diversified product line of business turbine aircraft, trainers
and special mission offerings to emerging global markets from here
in Kansas.”
“As the general aviation industry continues to recover
from the economic recession, this agreement is a great victory for
our state as it stabilizes Hawker Beechcraft’s long-term
presence in Wichita and provides some security to thousands of
employees in uncertain times,” said Parkinson. “I am
pleased with the workforce training assistance in this package
which will further solidify Wichita as having the best trained
aviation workforce in the world. With this responsible agreement,
Wichita and the entire state will benefit as this critical sector
of our economy prepares for a stronger future.”
The $40 million incentive package from the State of Kansas is
part of the IMPACT program available through the Kansas Department
of Commerce. The package includes $10 million over three years for
tuition reimbursement and training as part of the State of Kansas
Investments in Lifelong Learning (SKILL) funds of the program. The
SKILL funds may be used for employees attending the National
Aviation Training Center, Wichita State University or any of the
other Kansas Regents’ institutions. Hawker Beechcraft will
also receive $10 million in the first year, followed by $5 million
each year for the next four years, as part of the Major Project
Investment (MPI) portion of IMPACT. MPI funds may be used for other
expenses related to the project, such as the purchase or relocation
of equipment, product development, labor recruitment, or building
costs.
Kansas Governor Parkinson
IMPACT incentive packages are financed through tax exempt,
public purpose bonds issued by the Kansas Development Finance
Authority. These bonds are retired through the revenue received
from statewide employer withholding taxes. The City of Wichita and
Sedgwick County have also agreed in principle to each provide $2.5
million over the course of five years.
“This is a significant moment for Wichita as we work to
keep our great city the Air Capital of the World,” said Mayor
Brewer. “I appreciate the hard work of Governor Parkinson and
the partnership with Sedgwick County to reach this agreement that
will protect Wichita jobs and keep Hawker Beechcraft an important
piece of our aviation community for years to come.”
“We are so pleased to help announce this agreement at the
National Center for Aviation Training, an important project for
Sedgwick County and a critical component of the incentive
package,” said Commissioner Peterjohn. “Strengthening
our aviation workforce will not only profit Hawker Beechcraft, but
the entire community as we return the aviation industry to more
prosperous times.”