26 May 2016
ICON Aircraft is cutting back on production of its innovative A5 amphibious aircraft. The Californian company will produce just 20 aircraft this year, as opposed to the 175 it had planned. It is also reducing staff drastically – 150 jobs going from a workforce of 160, according to AOPA news in the USA.
“The unfortunate fact of the matter is that ICON had an overly aggressive production schedule for 2016,” said CEO Kirk Hawkins. “We are working hard to find the balance between high-rate production and our exacting standards for quality, performance, and affordability. While the A5 is extremely well-engineered and an amazing aircraft to fly, frankly we need to improve its manufacturability. We’ll have to slow down and walk before we run.”
ICON says its investors have committed to a substantial infusion of new capital to support the production changes. The company will return to a higher rate of production once supplier and internal capabilities are up to speed, expected next year.
“If there is any silver lining to this news,” said Hawkins, “it’s that we are taking this opportunity to accelerate the introduction of ICON Flight Centers. This will give ICON a regional presence that allows deposit holders to get earlier access to an A5 for demonstration flights and training without having to come out to California.”
ICON says it will continue to take orders for the A5 and has also revised its controversial purchase agreement.
“I realize this news will be as big a disappointment for many of our customers as it is for us,” said Hawkins. “I wish there were a better answer. For those who continue to be patient with us, not only will you get special access to fly the A5 at ICON Flight Centers, you’ll own one of the world’s most amazing aircraft.”
