The Russian owners of the former Adam Aircraft abruptly grounded development of the A700 jet this week and laid off most of the company’s workforce.
In a statement, AAI Acquisition chief executive Jack Braly called the move “a strategic realignment of the company’s goals and objectives in response to worldwide economic conditions.”
Braly told aviation-industry leaders three weeks ago that AAI’s owners planned to invest $200 million in the A700, money he called “secure,” according to published reports. One investor said at the time that the money was secure from recent Moscow stock- market turbulence.
But on Monday, AAI let go 209 employees, retaining 32 workers to maintain some operations as the company reworks its strategy and waits for conditions to improve, said vice president Steve Patrick.
“We’re suspending our testing and taking this moment to evaluate the business plan,” Patrick said.
The global financial crisis and tight credit markets have put the brakes on many investment projects worldwide. Russia has been particularly hard hit by falling oil prices and steep declines in its stock market.
AAI is owned by Russian private-equity firms Industrial Investors Group and Kaskol, which have said they control $3 billion in capital. The company bought Centennial Airport- based Adam Aircraft’s assets out of bankruptcy in April for $10 million and rehired many of its workers.
The company resumed flight testing of the seven-seat plane over the summer with a goal of obtaining Federal Aviation Administration certification by early 2010. Braly said in late July that the company would grow to 300 workers by the end of this year and 500 by the end of next year.
Greg Griffin: 303-954-1241 or ggriffin@denverpost.com
