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Adam Aircraft Layoffs Aimed At Cash Preservation, A700 Certification
Adam Aircraft Layoffs Aimed At Cash Preservation, A700 Certification

Adam Aircraft, which is developing the A500 pusher/puller twin piston and its turbofan sibling, the A700, announced today it was laying off 350 employees in Englewood, Colo., and two other facilities in an effort to preserve cash while moving towards certification of the A700 and searching for long term financing. The layoffs take effect today; some 500 employees remain on the job.

Adam President Duncan Koerbel said, "We regret that these actions will result in a layoff for many of our employees, but it is in the best interest for the long-term success of Adam Aircraft Industries. We have two excellent products in the A500 and A700 with a very strong global market and will continue to move the company forward in achieving our goals."

A company spokesperson said three A700s, two of which are fully conforming, are in flight test and a fourth is nearing completion. The hope is that a Type Certification will be awarded by year end.

The layoffs effect employees at Adam plants in Ogden and Pueblo, but callbacks are anticipated in the former by early summer.

In explaining the decision, Koerbel said, "We must be strategic in our focus by managing current cash expenditures to ensure adequate time to secure financing for the long term. We´re off to a good start in this effort with assistance from our partner, Citibank, but we need to be able to provide them with sufficient time working with potential investors to secure long term financing."


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