MD Helicopters has to slash its work force by a quarter. The troubled company has been further damaged by a slowdown in orders for its helicopters, which are primarily aimed at the law enforcement and air ambulance markets.
The company is “permanently eliminating” 23 jobs, according to a spokeswoman, while another 33 people are being laid off until business improves. About 200 employees will remain at the plant in Mesa, Ariz.
The layoffs came after a refinancing package for the company fell through and MD officials were working with banks to bring in capital. In a written statement, CEO Henk Schaeken said that his employees are working very hard to navigate through the current difficulties, “and we anticipate that many of these personnel will be brought back once our workload improves.” AIN has learned that Schaeken hopes to be in that position by January.
Business fortunes of the small independent have been wavering for several years now. While acknowledging that “cash flow has been an issue” for the company, the spokeswoman denied that the corporation was in danger of folding.
Speculation has been mounting that Boeing might be interested in reacquiring its former subsidiary, which it sold in 1999.