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Hawker Beechcraft Bankruptcy Plan Targets Lower Bizjet Production

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Key Takeaways:

  • Hawker Beechcraft's "Project Flight" plan, submitted during its bankruptcy filing, aims to significantly decrease or eliminate business jet production, specifically ending the Premier light jet program and likely the Hawker 4000.
  • The company intends to preserve its piston, King Air, and military aircraft sectors, with the highest-margin option involving the complete cessation of all business jet production.
  • A bankruptcy filing agreement has already wiped out $2.5 billion in debt and $125 million in annual cash interest liabilities.
  • While Hawker Beechcraft hopes to emerge from bankruptcy as an independent company, lawyers have noted interest from potential bidders for its acquisition.
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Hawker Beechcraft’s path to solvency will likely include a major decrease in bizjet production, according to a recent report by the Wichita Eagle.

As part of its recent bankruptcy filing, Hawker Beechcraft submitted a “Project Flight” plan outlining three potential options for moving forward, all of which preserve the company’s piston, King Air and military aircraft sectors while doing away with its Premier light jet program.

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