Icon Aircraft said Friday it is implementing a revised business plan for the unique LSA seaplane that includes a 40 percent cut to the company’s current workforce. Icon president and COO Thomas Wieners said, “Icon is currently structured for higher volume production, but after producing more than 100 aircraft, we now have a very good understanding of costs. And while the Icon A5 is truly an exceptional plane, the necessary higher price lowers demand considerably and requires us to adjust the organization’s size as a result.” Icon’s original business plan envisioned 10 A5s rolling out the factory door each month. The company would not disclose the actual number of A5s being produced at the moment but said Icon plans to match production to demand. The company said it sold five aircraft last week.
Icon Cuts Workforce 40 percent
Key Takeaways:
- Icon Aircraft is implementing a revised business plan and cutting 40% of its workforce due to higher-than-anticipated production costs for its A5 seaplane, which resulted in a high sale price ($389,000) and considerably lower demand.
- The company is now adjusting its production volume to match current demand and is facing financial challenges after a crucial second round of investment from Chinese investors failed to materialize.
- Despite a number of recent A5 accidents, some fatal and often linked to pilot error (like incorrect gear position for water/landings), Icon asserts the aircraft design is safe and is intensifying its focus on pilot training and safety education.
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