Reacting to a public backlash that erupted after Icon Aircraft began circulating a 40-page purchase agreement that the company asked buyers of the A5 light sport amphibian to sign before they took delivery of their new airplanes, the California manufacturer has replaced the contract with a far simpler document that removes nearly all of the most onerous requirements contained in the original. Icon also announced a major reduction in production for 2016, from 175 airplanes originally scheduled to roll out of the factory to 20.
Icon Throws Out Controversial Purchase Agreement
Key Takeaways:
- Icon Aircraft significantly revised its A5 purchase agreement, reducing its length from 40 to 11 pages and removing controversial provisions such as a 30-year airframe life limit, mandatory cockpit audio/video recorders, and transfer fees, following public backlash.
- While simplified, the new contract still requires factory-approved maintenance, includes flight data recorders, a clause precluding lawsuits if Icon isn't found liable by the NTSB, and caps the first 10-year airframe overhaul at $15,000.
- The company also announced a drastic reduction in its 2016 A5 production schedule, from 175 to 20 airplanes, citing an overly aggressive plan and the need to improve manufacturability and quality.
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