Safire Aircraft, pursuing development of the six-seat very light Safire jet, expects to close on the latest round of financing on 17 June and resume operations by 1 July, according to president and chief executive Camilo Salomon.
The company was last week forced to "temporarily" suspend operations following a "severe cashflow" problem. "We had hoped to secure funding by the end of May," Salomon says, "but the [five] shareholders have a few details to iron out with the new Swiss private equity group's terms and conditions of funding."
Of particular concern to the existing shareholders is the future ownership structure of Safire. "Overall control of the company will switch to the new investor," Salomon concedes, "but that is the price we have to pay if we want to continue with the programme." The funding, he says, should cover the cost of Safire Jet development through to certification.
First flight of the aircraft was planned for the end of September, with deliveries beginning in 2006. A delay to this schedule is now inevitable, Salomon says, "but not significant".
By the end of last week Safire had received two cancellations following written notification to its 400 customers of the temporary suspension.
KATE SARSFIELD / LONDON
Source: Flight International
