General aviation manufacturers enjoyed another record-breaking year last year, with billings totaling $21.9 billion, up 16.5 percent from the previous year, and worldwide shipments reaching 4,272 airplanes, up 5.4 percent. For the first time ever, shipments of jets exceeded the 1,000-per-year milestone, climbing to 1,138 last year.
Adam Aircraft Industries
At a time when business jet deliveries are setting record highs (see page 3), Adam Aircraft, an Englewood, Colo. piston twin and very light jet developer, has ceased operations. Adam Aircraft is the second of the modern crop of very light jet manufacturers to shut down (Aviation Technology Group was the first), hobbled by a lack of funding at a critical time in development of the all-composite A700 twinjet.
On Friday, Adam Aircraft voluntarily filed Chapter 7 bankruptcy in the U.S. Bankruptcy Court for the District of Colorado, bringing an official end to the Englewood, Colo.-based start-up aircraft manufacturer after it ceased operations on Monday last week. In the filing, Adam Aircraft lists more than 200 creditors, $50 million to $100 million in liabilities and between $1 million and $10 million in assets.
Last night Adam Aircraft announced it is suspending operations at its facilities in Englewood and Pueblo, Colo., because of funding issues at the start-up aircraft manufacturer. “This measure was required due to the inability of the company to come to terms with its lender for funding necessary to maintain business operations.
Englewood, Colo.-based Adam Aircraft isn’t yet saying whether it met a “self imposed” deadline of January 31 to raise $30.5 million in short-term funding. On January 15, Adam Aircraft CEO John Wolf sent a letter to investors warning that the private company could liquidate some shareholder assets if the short-term financing round failed.
Very light jet developer Adam Aircraft has laid off 300 employees and temporarily suspended operations at its satellite facility in Ogden, Utah. “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.
Rick Adam, CEO of Adam Aircraft, told AIN at last month’s Sun ’n’ Fun airshow in Lakeland, Fla., that the A700 very light twinjet would make its first flight in the second half of this year and obtain certification next year. He said his company’s A500 inline piston twin, which is currently in flight testing and expected to earn FAA approval in July, is eliminating much of the risk for the Williams FJ33-1-powered A700.
Adam Aircraft founder Rick Adam–who left the fledgling Englewood, Colo. aircraft manufacturer last year–has resurfaced at AdamWorks, which aims to design and manufacture complete composite solutions for any industry, including aerospace. AIN spoke with him to find out more about his plans for the newly formed company.
Adam Aircraft’s financial predicament is apparently more dire than the company let on last Thursday when it announced it was laying off 300 employees and making other “strategic adjustments.” Just two days before this announcement, Adam Aircraft CEO John Wolf sent a letter to sha
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.