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Van’s Aircraft Reports Cash Crunch, Why It Occurred & The Means To Correct It

Posted on March 9, 2024 by mwflyer

Published in Midwest Flyer Magazine February/March 2024 Digital Issue

In an October 30, 2023, Aviation-e-Brief article by rather than punched, with customers reporting cracks around AOPA’s Managing Editor of Digital Media, Jim Moore, the laser-cut holes. Company tests determined the parts were it is noted that the #1 aircraft kit manufacturer in usable, but many customers requested replacement of affected

the world, Van’s Aircraft, is experiencing some cash flow parts, nonetheless.

difficulties, and that an internal assessment led by company founder, Richard “Dick” VanGrunsven, is being conducted to identify and remedy problems.

Van’s Aircraft detailed three primary causes of the situation: 1) A combination of supply chain snarls and increased demand during the COVID-19 pandemic, which caused shipping costs to spike as the company hired and trained new staff to work on the increased volume of orders; 2) A “multi-million-dollar setback” related to the use of inferior primer on parts sourced overseas, which led to corrosion “forming on a large number of quick build kits” that resulted in many parts being scrapped; and 3) Another issue with outsourced parts with holes that were laser-cut

“This has resulted in an unmanageable number of requests to replace laser-cut parts and cancel orders,” the company stated. “More than 1,800 customers are currently affected by this issue, some of whom have received more than one kit.”

To date, there were more than 11,000 Van’s Aircraft kit builds completed by 2022, and hundreds more still in progress – a testament to the popularity of the aircraft, and the confidence the aviation community has in the company that issues will be resolved.

(https://www.aopa.org/news-and-media/all-news/2023/ october/30/vans-aircraft-reports-cash-crunch-prompts- concern?utm_source=ebrief&utm_medium=email&utm_ term=vans).

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