ICON's New CEO, Former CEO Differ on Foreign Investment Committee Probe

The manufacturer seeks primary type certification on the A5 while under scrutiny resulting from questions regarding its Chinese ownership and potential military applications.

Julie Boatman

Friday, January 28, 2022 at 02:34 PM ET

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There are roughly 145 Icon A5s currently in the field. [Photo: Icon Aircraft]

Key Takeaways:

ICON Aircraft has appointed new interim leadership amid a U.S. government (CFIUS) investigation into its significant ownership (46.7%) by a Chinese-government-connected entity (PDSTI).
The CFIUS probe was triggered by national security concerns, including allegations from co-founder Kirk Hawkins that the A5 seaplane has potential military applications, a claim supported by an active U.S. Navy program (Ocean Eagle) to convert it into an amphibious UAV.
Minority shareholders also accuse the Chinese entity of expropriating ICON's intellectual property to China, while ICON Aircraft denies the A5's military suitability and views Hawkins's efforts as an attempt to regain control.

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ICON Aircraft announced Tuesday that it has promoted two leaders from within the company to its C-suite. The change marks the latest chapter since an ongoing investigation by a U.S. government committee on foreign investment was triggered by concerns raised over the company’s significant ownership by a Chinese-government-connected entity—and the military applications possible for the A5 seaplane.

These allegations have basis in not just conjecture, but in at least one ongoing naval project that has been revealed to FLYING by the company’s co-founder and former CEO.