New Piper plans to cut production this year from the originally planned 538 aircraft to 448, and next year's to 400 aircraft.
Piper had laid off 250 people, almost 17% of its workforce, on the day of the terrorist action because of the already slow US economy. "There was no way to test and deliver aircraft off the line," says the company. To avoid cash flow problems due to the extended grounding of US general aviation, the manufacturer sent 1,000 workers home for two weeks beginning 24 September. Around 200-250 people were kept on to test and deliver aircraft once restrictions were eased. Even then some Piper dealers were still unable to take delivery of aircraft because of airspace restrictions around major US cities only now being lifted.
Despite the cut in production, Piper still expects to report an increase in revenues this year to $265 million, compared with $182 million last year. But instead of growing in 2002, as initially forecast, revenues are projected to slip to $225 million. Piper has grown steadily since emerging from bankruptcy in 1994.
Cessna announced layoffs at its single-engine aircraft plant earlier this year, and Mooney has entered Chapter 11 bankruptcy protection.
Source: Flight International
