Piper Indefinitely Suspends PiperJet Altaire

Isabel Goyer

Monday, October 24, 2011 at 11:14 PM ET

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Piper Altaire

Key Takeaways:

Piper has indefinitely suspended its Altaire single-engine jet program due to rising development costs making it unlikely to recoup investment under foreseeable market projections.
The decision was made despite the Altaire program being on schedule, on budget, and meeting performance targets.
As a direct consequence, Piper will lay off 150 employees and offer refunds or credit options to customers who had placed orders for the jet.
Piper plans to reallocate resources to step up product improvements for its turboprop and piston-powered aircraft lines.

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Piper on Monday indefinitely suspended its single-engine Altaire jet, previously known as the PiperJet, saying it would be unlikely to recoup its investment in a reasonable period of time.

“Following an evaluation of Altaire development and light jet forecasts we determined the best course of action for the company going forward,” interim Piper president/CEO Simon Caldecott said in an email release, “is to indefinitely suspend the program, preserving intellectual property and progress to date.” This course of action seems to leave Piper’s options for the jet open going forward.