Hawker Beechcraft Employment Drop Triggers Reduction in State Incentives
Hawker Beechcraft, in what it hopes is the final phase of Chapter 11 bankruptcy proceedings, saw its employment level in Kansas drop to 3,372 as of December 31, triggering an automatic reduction in the annual incentive payment from the State of Kansas. In 2010 the company was granted $45 million in incentives by the state, based on an agreement to maintain employment in Kansas at 4,000. With some buffer built into the agreement, a drop in employment below 3,600 calls for a reduction in the annual incentive payment of $5 million. With the December drop in employment below that level, Hawker Beechcraft will receive a pro-rated payment of approximately $4.2 million.