Piper Aircraft has indefinitely suspended further development of the Piper Altaire business jet.
The move follows a review of the company’s business goals with the light jet market outlook, investment strategies and overall economic forecasts.
“Following an evaluation of Altaire development and light jet forecasts we determined the best course of action for the company going forward is to indefinitely suspend the program, preserving intellectual property and progress to date,” said Piper Interim President and CEO Simon Caldecott.
“Unfortunately and regrettably, this will have serious consequences for many talented Piper employees and for our Piper Altaire customers.”
Caldecott said that while the Altaire program was on schedule, on budget, and hitting aircraft performance targets, planned development costs had risen above the point that were recoverable under foreseeable light jet market projections.
Altaire position holders will have their deposits refunded or applied towards other new Piper aeroplanes.
“Clearly, the market for light jets is not recovering sufficiently and quickly enough to allow us to continue developing the program under the economic circumstances we face,” Caldecott said.
“However, going forward as a company, we will step up product improvements for our turboprop and piston-powered product lines. As a result, Piper will increase the number of personnel dedicated to our sustaining engineering function,” he added.
“Without a doubt this event will impact the company, but Piper employees have
demonstrated great resilience before to overcome such economic obstacles and I
am confident we will once more persevere over the long-run.”
“Certainly, increased product improvements to the existing aircraft in production and creation of these engineering and manufacturing enterprises will not make up for the loss of many of our extremely talented colleagues that have been brought in for the Altaire program. But we will make every effort to preserve as many as possible,” Caldecott said.
“Unquestionably, we will be losing some of the best and most professional talent in aviation to others in our industry and that is our loss and their gain.”
The personal jet market has been an on-again, off-again proposition since the concept was first mooted in the mid 1990s. Since then several companies have hit financial brick walls trying to get a product to market.