Hawker Settles Dispute with Pilatus over T-6 Royalties

 - January 10, 2013, 2:45 PM

The U.S. Bankruptcy Court issued an order on Monday authorizing Hawker Beechcraft to assume an earlier agreement with Pilatus Aircraft, resolving a claim by the Swiss OEM against the Wichita aircraft manufacturer. Pilatus had alleged that Hawker Beechcraft continued to build and deliver T-6 trainers before and following the May bankruptcy filing without paying royalties on intellectual property in production of the aircraft. The T-6 and AT-6 are both based on a Pilatus design.

The court approved a “cure amount” totaling slightly more than $7.5 million, to be paid to Pilatus “as soon as is reasonably practicable” following Beechcraft’s anticipated emergence from bankruptcy in the middle of next month. It further noted that payment will constitute “a cure of all defaults arising under the Pilatus agreement.”

In other news at Hawker Beechcraft, the OEM has confirmed plans to furlough approximately 240 hourly employees in a series of rolling furlough actions to be scheduled throughout this year. According to a company spokeswoman, the furloughs were the result of the Joint Aircraft Training Systems negotiation process and the need to synchronize T-6 and AT-6 production to meet customer demand.