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| Tuesday, June 17, 2008 |
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Mooney Responds To Soft Market
By FlyingNews @ 3:28 PM :: 539 Views ::
0 Comments :: General Aviation, Small Aircraft Manufacturers
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Mooney Airplane Company is experiencing the impact of the changing economy and its effect on the general aviation market. Industry statistics were recently released by the General Aviation Manufacturers Association (GAMA). While overall revenues for business and personal aircraft are up, sales of piston engine airplanes are down by 28% compared to the same period last year.
In response to the current market, Mooney has implemented numerous measures to improve efficiencies and reduce cost, including the adoption of LEAN manufacturing initiatives.
According to Mooney Chief Executive Officer Dennis Ferguson, “In light of our current order levels, we have decided to slow our production rate from 8 aircraft to 5 per month for the remainder of 2008. While this action will allow us to better control inventory and reduce production costs, it will have an impact on our work force. Effective Tuesday, June 17, we will reduce our employment by approximately 80 people. In order to assist the affected employees we will provide a severance package and career transition support.”
“These decisions will not have an adverse effect on the quality or safety of our products nor will they delay scheduled aircraft deliveries. They were made to create corporate resiliency in the present economic conditions. Our plans include positioning Mooney as a strong contender in the international market,” Ferguson stated. “We are strengthening our business in Europe, South America and Australia, where Mooney’s high performance, efficiency and pricing are especially appealing. Our focus is to ensure the long-term viability of the company through prudent management and expansion of our market reach.”
Mooney recently received certification for the Model M20TN Acclaim and the Acclaim Type S from the ANAC, the Brazilian aviation certification authority. Other recent international certifications for the Acclaim include Civil Aviation Safety Authority (CASA) in Australia.
Ferguson concluded, “the Mooney name has earned its place in the distinguished company of aviation legends. Since 1946 the story of Mooney has been one of constant innovation, industry leadership and the passion for flight. Our commitment is to continue the Mooney story.”
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