Adam Aircraft Industries
Encyclopedia
Adam Aircraft Industries (AAI) was an aircraft manufacturer founded by George F. Adam Jr and John C. Knudsen in 1998
. The company was located at Centennial Airport
in the Denver-Aurora Metropolitan Area
of Colorado
.
The company certified and produced the inline piston twin-engined Adam A500
, while the turbofan-powered Adam A700 AdamJet was under development. The A700 was intended to be an entrant into the niche of Very Light Jets
(VLJs), but its development was ceased before production was achieved.
One of the first Adam A500
s manufactured, A500 s/n 0002, was featured in the 2006 Michael Mann film Miami Vice
.
In conjunction with other partners, the company had also won a major contract from Defense Advanced Research Projects Agency
(DARPA) for the development of a next-generation rotorcraft, potentially signaling its longer-term product development plans.
Adam Aircraft ceased operations on 11 February 2008, and filed for Chapter 7
bankruptcy on 15 February 2008.
In April 2008, the assets of the former Adam Aircraft Industries were purchased from bankruptcy by AAI Acquisition Inc. The company failed to restart Adam Aircraft and in April 2009 Adam Aircraft ceased operations and laid off all its staff.
In April 2011 Triton Aerospace announced that they had acquired the company's assets.
plant and laid off 300 workers.
Adam Aircraft President Duncan Koerbel said was quoted as saying:
The company indicated that it needed to raise between USD$75 and $150 million to produce the A500 and complete certification of the A700.
In a letter to shareholders released on 22 January 2008, Adam Aircraft CEO John Wolf indicated that the company would face "liquidation" if it could not raise an additional USD$25M in the seven days that remained before the end of January, 2008. The company had loans due and could not pay them without the additional funds.
On 11 February 2008 the company ceased operations, issuing a short news release indicating that it was "due to the inability of the company to come to terms with their lender for funding necessary to maintain business operations."
On 14 February 2008 it was reported that employees of the company were optimistic that operations would be able to continue under new financing. At the same time aviation industry leaders believed that the company would not be saved and that there would be no choice but to have it liquidated. This prediction turned out to be correct as the company filed for liquidation under Chapter 7
on 15 February 2008
The municipal government of the City of Pueblo, Colorado
demanded that USD$2M in financial incentives paid to Adam Aircraft be returned. As part of its agreement with the city, Adam Aircraft agreed to create 448 jobs. The company had only created 90 jobs, almost all of which had been eliminated in the previous round of lay-offs in January, preceding closure. The city filed liens against Adam Aircraft's physical equipment that is located in buildings that the city owns, to recover the money owed.
bankruptcy court approved the sale of the company to AAI Acquisition Inc. for $10 million. AAI Acquisition is jointly controlled by Russia
n firms Industrial Investors and Kaskol.
Industrial Investors is a private equity management company with $3 billion in assets, notably Far East Shipping Company
. According to their statement, former Colorado Governor Bill Owens is a director of one of its companies. In a statement made at the time of purchase, AAI VP Dmitry Shokhin said: "We plan to revive Adam Aircraft's operations, including continuing the process of certification for the A700 jet".
Industrial Investments restarted work on the A700 and in May 2008 had 60 employees back at work. Industrial Investments reportedly ordered 75 A700s prior to Adam Aircraft's bankruptcy.
According to a July 2008 statement by Sergey Generalov, CEO and owner of Industrial Investors, more than ten other companies had bid for the assets of bankrupt AAI. The company, prior to the tender, made a deal with 50 Adams engineers, persuading them to stay with AAI, thus securing the winning bid. In addition to the US
$10 million purchase price, Generalov expected to invest another US$150 million before the project would generate any return.
The new company confirmed at AirVenture 2008 that they would proceed with certification of the A700 and had indicated an initial forecast completion date in the first quarter of 2010. The company also confirmed that they would not produce the A500 for the foreseeable future, due to the global drop in demand for piston-engined aircraft
Citing the economic crisis of 2008 AAI Acquisition President and CEO Jack Braly announced on 28 October 2008 that A700 "Flight test and other development activity have been suspended". Braly indicated that the company's investment team and board of directors were reviewing the economic and market conditions and would decide on a new schedule for certifying the A700.
The company laid off 200 employees in October 2008, leaving 30 engineering staff still at work.
In January 2009 the company announced that it was seeking a new strategic partner to help the company expand into new areas of work. The new focus was to be on sub-contract engineering and manufacturing for the aerospace and custom automotive industry, specializing in projects that could make use of the company's expertise in composite design and manufacturing. The company stated at the time that it had not abandoned the A700 jet project. Company Vice President of Business Development Steve Patrick said:
In April 2009, unable to find non-aerospace work for its facilities, new partners and out of operating capital, AAI Acquisition closed Adam Aircraft and laid off the last of its staff.
, Hsueh's company is redesigning the A500 and A700 with the intent to return the aircraft to production at the Port of Skagit County
, Skagit County, Washington
.
In April 2011 Triton Aerospace of Skagit Regional Airport
in Burlington, Washington
announced that they had acquired the assets of Adam Aircraft and intended to return the A500 to production after re-engineering it to lose 1000 lb (454 kg) of empty weight and recertifiying it. The aircraft will also be changed to a turboprop
, with twin-engined and rear-engined-only versions. Two new prototypes are expected in 2013 with re-certification to follow. The company owner, Thomas Hsueh, indicated that for now production is planned for the USA, but costs may require moving the assembly line to China, or even a lower cost country, such as Mexico. Triton indicated that they have no plans to produce the A700 jet.
1998 in aviation
This is a list of aviation-related events from 1998:-Events:* Cirrus Aircraft successfully flight-tests the CAPS ballistic emergency aircraft parachute.* Adam Aircraft Industries founded* Eclipse Aviation founded-January:...
. The company was located at Centennial Airport
Centennial Airport
Centennial Airport is located in Dove Valley, an unincorporated portion of Arapahoe County near Denver, Colorado. The airport’s runways also extend into neighboring Douglas County. The airport opened on May 12, 1967 as Arapahoe County Airport, and was renamed on July 13, 1984...
in the Denver-Aurora Metropolitan Area
Denver-Aurora Metropolitan Area
The Denver-Aurora-Broomfield, CO Metropolitan Statistical Area is a United States Census Bureau defined Metropolitan Statistical Area in the State of Colorado that includes the City and County of Denver and nine suburban counties. The Census Bureau estimates that the population was 2,357,404 on...
of Colorado
Colorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
.
The company certified and produced the inline piston twin-engined Adam A500
Adam A500
The Adam A500 is a six-seat civil utility aircraft that was produced by Adam Aircraft Industries. The aircraft is of pod-and-boom, push-pull configuration with its two Continental TSIO-550-E piston engines mounted to provide centerline thrust....
, while the turbofan-powered Adam A700 AdamJet was under development. The A700 was intended to be an entrant into the niche of Very Light Jets
Very Light Jet
A very light jet, entry-level jet or personal jet, previously known as a microjet, is a category of small jet aircraft approved for single-pilot operation, seating 4-8 people, with a maximum take-off weight of under...
(VLJs), but its development was ceased before production was achieved.
One of the first Adam A500
Adam A500
The Adam A500 is a six-seat civil utility aircraft that was produced by Adam Aircraft Industries. The aircraft is of pod-and-boom, push-pull configuration with its two Continental TSIO-550-E piston engines mounted to provide centerline thrust....
s manufactured, A500 s/n 0002, was featured in the 2006 Michael Mann film Miami Vice
Miami Vice
Miami Vice is an American television series produced by Michael Mann for NBC. The series starred Don Johnson and Philip Michael Thomas as two Metro-Dade Police Department detectives working undercover in Miami. It ran for five seasons on NBC from 1984–1989...
.
In conjunction with other partners, the company had also won a major contract from Defense Advanced Research Projects Agency
Defense Advanced Research Projects Agency
The Defense Advanced Research Projects Agency is an agency of the United States Department of Defense responsible for the development of new technology for use by the military...
(DARPA) for the development of a next-generation rotorcraft, potentially signaling its longer-term product development plans.
Adam Aircraft ceased operations on 11 February 2008, and filed for Chapter 7
Chapter 7, Title 11, United States Code
Chapter 7 of the Title 11 of the United States Code governs the process of liquidation under the bankruptcy laws of the United States...
bankruptcy on 15 February 2008.
In April 2008, the assets of the former Adam Aircraft Industries were purchased from bankruptcy by AAI Acquisition Inc. The company failed to restart Adam Aircraft and in April 2009 Adam Aircraft ceased operations and laid off all its staff.
In April 2011 Triton Aerospace announced that they had acquired the company's assets.
History
Financial problems and cessation of operations
In January 2008 it was announced that Adam Aircraft was having problems raising the capital required to complete certification flight testing of the A700 jet and to enter full production of the A500 piston aircraft. As a result the company closed its Ogden, UtahOgden, Utah
Ogden is a city in Weber County, Utah, United States. Ogden serves as the county seat of Weber County. The population was 82,825 according to the 2010 Census. The city served as a major railway hub through much of its history, and still handles a great deal of freight rail traffic which makes it a...
plant and laid off 300 workers.
Adam Aircraft President Duncan Koerbel said was quoted as saying:
"To provide for our future growth, 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, CitibankCitibankCitibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
, but we need to be able to provide them with sufficient time working with potential investors to secure long term financing."
The company indicated that it needed to raise between USD$75 and $150 million to produce the A500 and complete certification of the A700.
In a letter to shareholders released on 22 January 2008, Adam Aircraft CEO John Wolf indicated that the company would face "liquidation" if it could not raise an additional USD$25M in the seven days that remained before the end of January, 2008. The company had loans due and could not pay them without the additional funds.
On 11 February 2008 the company ceased operations, issuing a short news release indicating that it was "due to the inability of the company to come to terms with their lender for funding necessary to maintain business operations."
On 14 February 2008 it was reported that employees of the company were optimistic that operations would be able to continue under new financing. At the same time aviation industry leaders believed that the company would not be saved and that there would be no choice but to have it liquidated. This prediction turned out to be correct as the company filed for liquidation under Chapter 7
Chapter 7, Title 11, United States Code
Chapter 7 of the Title 11 of the United States Code governs the process of liquidation under the bankruptcy laws of the United States...
on 15 February 2008
The municipal government of the City of Pueblo, Colorado
Pueblo, Colorado
Pueblo is a Home Rule Municipality that is the county seat and the most populous city of Pueblo County, Colorado, United States. The population was 106,595 in 2010 census, making it the 246th most populous city in the United States....
demanded that USD$2M in financial incentives paid to Adam Aircraft be returned. As part of its agreement with the city, Adam Aircraft agreed to create 448 jobs. The company had only created 90 jobs, almost all of which had been eliminated in the previous round of lay-offs in January, preceding closure. The city filed liens against Adam Aircraft's physical equipment that is located in buildings that the city owns, to recover the money owed.
AAI Acquisition
On April 11, 2008, a ColoradoColorado
Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains...
bankruptcy court approved the sale of the company to AAI Acquisition Inc. for $10 million. AAI Acquisition is jointly controlled by Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
n firms Industrial Investors and Kaskol.
Industrial Investors is a private equity management company with $3 billion in assets, notably Far East Shipping Company
Far East Shipping Company
The Far East Shipping Company is a Russian ship-owning company and the base company of FESCO Group. Founded in the 19th century in Vladivostok, the company now owns a fleet of 50 vessels, totaling 880 thsd DWT.- Share capital and management :...
. According to their statement, former Colorado Governor Bill Owens is a director of one of its companies. In a statement made at the time of purchase, AAI VP Dmitry Shokhin said: "We plan to revive Adam Aircraft's operations, including continuing the process of certification for the A700 jet".
Industrial Investments restarted work on the A700 and in May 2008 had 60 employees back at work. Industrial Investments reportedly ordered 75 A700s prior to Adam Aircraft's bankruptcy.
According to a July 2008 statement by Sergey Generalov, CEO and owner of Industrial Investors, more than ten other companies had bid for the assets of bankrupt AAI. The company, prior to the tender, made a deal with 50 Adams engineers, persuading them to stay with AAI, thus securing the winning bid. In addition to the US
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....
$10 million purchase price, Generalov expected to invest another US$150 million before the project would generate any return.
The new company confirmed at AirVenture 2008 that they would proceed with certification of the A700 and had indicated an initial forecast completion date in the first quarter of 2010. The company also confirmed that they would not produce the A500 for the foreseeable future, due to the global drop in demand for piston-engined aircraft
Citing the economic crisis of 2008 AAI Acquisition President and CEO Jack Braly announced on 28 October 2008 that A700 "Flight test and other development activity have been suspended". Braly indicated that the company's investment team and board of directors were reviewing the economic and market conditions and would decide on a new schedule for certifying the A700.
The company laid off 200 employees in October 2008, leaving 30 engineering staff still at work.
In January 2009 the company announced that it was seeking a new strategic partner to help the company expand into new areas of work. The new focus was to be on sub-contract engineering and manufacturing for the aerospace and custom automotive industry, specializing in projects that could make use of the company's expertise in composite design and manufacturing. The company stated at the time that it had not abandoned the A700 jet project. Company Vice President of Business Development Steve Patrick said:
In April 2009, unable to find non-aerospace work for its facilities, new partners and out of operating capital, AAI Acquisition closed Adam Aircraft and laid off the last of its staff.
Triton America
In July 2009, real estate developer Thomas Hsueh purchased the remaining tooling, parts, and intellectual property of Adam Aircraft from the Russian investors. Doing business as Triton America LLC, in Anacortes, WashingtonAnacortes, Washington
Anacortes is a city in Skagit County, Washington, United States. The name "Anacortes" is a consolidation of the name Anna Curtis, who was the wife of early Fidalgo Island settler Amos Bowman. Anacortes' population was 15,778 at the time of the 2010 census...
, Hsueh's company is redesigning the A500 and A700 with the intent to return the aircraft to production at the Port of Skagit County
Port of Skagit County
The Port of Skagit is a port authority that owns and operates three key facilities in Skagit County, Washington. They include the Skagit Regional Airport, Bayview Business Park and the La Conner Marina...
, Skagit County, Washington
Skagit County, Washington
Skagit County is a county in the U.S. state of Washington. It is named after the Skagit Indian tribe. As of 2010, the population was 116,901. It is included in the Mount Vernon-Anacortes, Washington, Metropolitan Statistical Area...
.
In April 2011 Triton Aerospace of Skagit Regional Airport
Skagit Regional Airport
Skagit Regional Airport is a public airport located three miles west of the central business district of Burlington and northwest of Mount Vernon, both cities in Skagit County, Washington, United States. The airport is owned by the Port of Skagit County. It is situated in the Bayview Industrial...
in Burlington, Washington
Burlington, Washington
Burlington is a city in Skagit County, Washington, United States. The population is 8,388 as recorded by the 2010 census. It is included in the Mount Vernon–Anacortes, Washington Metropolitan Statistical Area.-History:...
announced that they had acquired the assets of Adam Aircraft and intended to return the A500 to production after re-engineering it to lose 1000 lb (454 kg) of empty weight and recertifiying it. The aircraft will also be changed to a turboprop
Turboprop
A turboprop engine is a type of turbine engine which drives an aircraft propeller using a reduction gear.The gas turbine is designed specifically for this application, with almost all of its output being used to drive the propeller...
, with twin-engined and rear-engined-only versions. Two new prototypes are expected in 2013 with re-certification to follow. The company owner, Thomas Hsueh, indicated that for now production is planned for the USA, but costs may require moving the assembly line to China, or even a lower cost country, such as Mexico. Triton indicated that they have no plans to produce the A700 jet.
List of aircraft
- Adam M-309 CarbonAero - (2000) Twin-piston engine centerline thrust technology demonstrator aircraft built for Adam Aircraft by Scaled CompositesScaled CompositesScaled Composites is an aerospace company founded by Burt Rutan and currently owned by Northrop Grumman that is located at the Mojave Spaceport, Mojave, California, United States...
- Adam A500Adam A500The Adam A500 is a six-seat civil utility aircraft that was produced by Adam Aircraft Industries. The aircraft is of pod-and-boom, push-pull configuration with its two Continental TSIO-550-E piston engines mounted to provide centerline thrust....
- (2002) Twin-piston engine centerline thrust six-person aircraft. Development of M-309 - Adam A700 AdamJet - (2003) Twin-turbofan engine six-person (+1 in optional belted lav) aircraft, with configuration similar to A500