|Mooney Aviation Company Announcement|
November 18, 2010 - Kerrville, Texas
Mooney employees received unwelcome news this week as the holiday season approaches. More difficult decisions were necessary that will eliminate many of the current positions at the company by year end.
“We are not shutting down,” said Mooney Chief Financial Officer Barry Hodkin. “However, we cannot continue to subsidize the company at the level we have in the recent past. We have been in discussions with potential investors for more than 18 months and will continue to work with them. If things change then the scope of this layoff could change.”
“We will continue to protect Mooney’s assets both tangible and intangible,” Hodkin said. “Those assets include the facilities and our certificates for production and manufacturing.”
In addition, the company intends to continue to provide technical support to existing owners and a level of spare parts support for Mooney airplanes.
Mooney began layoffs in 2008. At that time, the company employed approximately 500 people in the manufacture of its high-performance, single engine aircraft. That year, as the economy worsened Mooney started taking steps to survive the economic downturn. On November 4, 2008, more than 200 employees were furloughed. Smaller reductions in force continued until they reached today’s employment level of 53.
Hodkin said negotiations with potential investors continue, but there have been no commitments made to date.