VERO BEACH, Fla., Oct. 24, 2011 – Piper Aircraft Inc. is indefinitely suspending further development of the Piper Altaire business jet following a review to align the company’s business goals with the light jet market outlook, investment strategies and overall economic forecasts.
Piper Interim President and CEO Simon Caldecott said that while the Altaire program was on schedule, on budget, and hitting aircraft performance targets, planned development costs had risen above the point that were recoverable under foreseeable light jet market projections. The company will not release the budget for the Altaire development program or expenditures to date. Piper will refund the deposits of Altaire position holders or their deposits can be applied towards other new Piper airplanes.
“Going forward as a company, we will step up product improvements for our turboprop and piston-powered product lines,” said Caldecott. “In addition, the company is initiating third-party engineering and manufacturing services to preserve as much of our talent pool and as many jobs as possible.”
Among the enterprise initiatives underway is Design by Piper. This third-party service provider will perform proprietary engineering and technical functions for other companies to take advantage of the high level and wide range of some of the talent that had been assigned to the Altaire development program.
Additionally, Precision by Piper, another third-party service provider, will leverage the company’s precision manufacturing expertise and recent upgrades to its manufacturing capabilities which were completed in anticipation of Altaire production. Utilizing the company’s vertically integrated manufacturing model, Piper is also stepping up product improvements and investments in existing lines of its business and training aircraft.
Placement Assistance
Piper is preparing a schedule of personnel reductions and will provide information to the affected employees as soon as possible. The company will aggressively work with aviation companies and other employers who are currently seeking talent to place as many impacted Piper employees in other positions as possible. Companies can contact the Piper Placement hotline at 772-567-4361.
Current employment at Piper totals more than 850 individuals. As a result of the indefinite suspension of the Altaire jet development program, the company will progressively lay off approximately 150 employees as the program ramps down. That will bring total company employment to somewhat more than 700 individuals. In addition, the company is quickly eliminating the positions of 55 contract personnel.
About Piper Aircraft
Piper Aircraft, Inc. is headquartered in Vero Beach, Florida.
