Hawker Beechcraft continues to have trouble in the declining market for aircraft sales and repeatedly stated that it is very concerned with liquidity issues as they face the most difficult aviation downturn in recent memory.
According to its 2009 2Q earnings conference call, Hawker Beechcraft’s deliveries are uncertain because customers are having trouble obtaining financing to purchase aircraft or are concerned about the climate in which they will be taking delivery. Concerns about the company’s liquidity position make it necessary to conserve cash and cut costs. Because of this, Hawker Beechcraft has been forced to cut employment by 25% and further action will be necessary “in the weeks ahead” according to CEO Bill Boisture.
CFO Sid Anderson stated that NetJets canceled orders for 12 aircraft and will defer the remaining aircraft for this year and the remainder of next year. The manufacturers problems also are being challenged by the large number of used aircraft on the market creating conditions that depress sales as well as to lower prices.