Adam Aircraft Revises Production, Spending Plans
Adam Aircraft today announced “a revision to the company’s overall production plan.” The result is a “strategic adjustment” necessary to achieve two key objectives: FAA type certification of the A700 very light jet and completion of the “make production fly” initiative that is improving manufacturing efficiency at the company’s Englewood, Colo. factory. “To provide for our future growth,” said Adam Aircraft president Duncan Koerbel, “we must be strategic in our focus by managing current cash expenditures to ensure adequate time to secure financing for the long term.” The strategic adjustment includes suspending operations at Adam’s Ogden, Utah satellite facility through early summer and rescheduling the completion of that plant’s composite lay-up section; moving empennage lay-up and bonding operations from Adam’s Pueblo, Colo. facility to Englewood but retaining machine-shop operations at Pueblo; and reducing expenses and labor, which includes layoffs, “commensurate with the revised production plan,” the company stated. Layoffs will affect a total of 300 employees, including 50 from the Ogden facility, bringing the total employee count down to 500, according to an Adam spokeswoman. While Adam says it already has the funding needed to achieve type certification of the A700, the strategic adjustment will help the company “ensure the transfer to production [of the A700] and achieve cash-flow breakeven,” she added. The revised production schedule now calls for full-rate A500 production this summer and volume production of the A700 following FAA certification, previously announced as planned for the fourth quarter this year. “With its long-term company objectives unchanged, Adam Aircraft will ensure that the required engineering, manufacturing, planning, supply chain, tooling and other development resources are available to achieve TC of the A700 in 2008,” the company said.