As Adam Aircraft prepares for a bankruptcy auction of its assets, some owners of its aircraft have formed a coalition and want whoever buys the company to support their planes.
If a new company does not maintain the certificate and provide parts and support for the aircraft, "ultimately they would lose most of their value," said Mike Hackett, who lives in Napa, Calif., and owns an Adam Aircraft A500 propeller plane.
Adam Aircraft brought the A500 to market in 2005 and was working toward federal certification of its A700 very light jet when it shut down. Buyers paid more than $ 1 million each for the planes.
An auction for the entire company is set for today, but the trustee could still opt for a piecemeal auction of the assets, which would be held April 30. The group of six owners, including Hackett, enlisted Adam Aircraft´s former vice president of customer support, Kay Ardalan, to advocate for their interests.
"After the company closed, there was nothing put in place to sort of take care of these guys," Ardalan said.
A group of Russian investors is among those believed to be interested in Adam Aircraft, according to Ardalan and Hackett. A buyer who is an established aircraft manufacturer may be able to continue A500 and A700 production.
The buyer may also play a role in determining what will happen to those who ordered and made deposits for Adam Aircraft planes.
Richard Aboulafia, vice president of analysis at the Teal Group in Fairfax, Va., thinks it´s unlikely the A500 owners will be supported.
"I´m hard-pressed to think of any dead aircraft company that´s been revived, especially in this class," Aboulafia said. For support of the planes, "the fleet size is so small that it would be profitable to nobody."