Posted on 11/06/2008 8:57:05 AM PST by taildragger
Latest Company To Feel Effects Of Economic Slump
The latest stop by The Recession Fairy is Kerrville, TX. Mooney Aircraft announced Wednesday it will cut production as it tries to sell excess inventory into a slumping marketplace... and fewer planes in production means fewer workers will be needed to build them.
(Excerpt) Read more at aero-news.net ...
"These are temporary adjustments and they only affect our manufacturing operations," Franson added. "So our (other operations) will continue to operate normally and be staffed at the normal level. There will not be any change to existing or potential customers and we will deliver airplanes as scheduled."
Mooney CEO Bob Gowens told state employment officials the company couldn't have seen the latest round of layoffs coming.
"These unexpected and unforeseeable conditions are beyond Mooney Airplane Company's control," Gowens wrote in a letter to the Texas Workforce Commission. "It was impossible for Mooney Airplane Company to predict this sudden collapse in demand at the time when notice would have been required."
As ANN reported, Mooney laid off 80 workers in June, leaving about 320 workers at its plant at Schreiner Field (ERV).
Mooney's normal production has been running at about a hundred planes a year. The production cut comes in a week which has already seen Grob Aerospace enter full insolvency, and Cessna and Hawker Beechcraft announce production and workforce cuts.
Franson said the latest layoffs were effective immediately, and will leave about 91 employees at Mooney. The company hopes to start building airplanes again when the economy rebounds and demand increases, he added.
Who needs emplyees when you’ve got ‘Hope and Change’ on the payroll?
I’m wondering if a lot of CEO types are going to be very aggressive in downsizing/cutting benefits/writing down other asset values in the next 50 or so days to take advantage of current tax law v. what they might have to endure under the Thug-Elect.
It’s just the beginning.
I predict a 20$ shrinkage in the business sector.
It’s just the beginning.
I predict a 20% shrinkage in the business sector.
You may very well be correct. In fairness, it is certainly not an "Obama Reaction"!
We were headed in this direction in any event!
Yup. 0bama may (EO) enact 'emergency federal no-lay-off rules/laws.'
General Aviation, the yacht industry, the RV’s industry are not industries to buy stock in just yet. They are going to get slammed hard and take quite a while to recover.
Well this will help cut down carbon emissions from those too poor to fly private jets.
Raise taxes and let the Bush Tax Cuts laps and you’ll see a lot more layoffs.
My husband just got a letter from Hawker Beechcraft about the layoffs. He’s not too worried though, he said they have to layoff the contract workers first and he’s got quite a bit of seniority. Feel bad for some of the newer workers though, they’re still trying to recover from that stupid strike.
Sad news. But just wait until General Motors makes their announcement tomorrow. Hmmm, how about a GM/Mooney merger?
In fairness, it is certainly not an "Obama Reaction"!And you know that for certain because?...You're an Obama supporter?
I think many were hanging on to see the outcome of the election. Now we’re going to see the results.
“In fairness, it is certainly not an “Obama Reaction”!”
Actually, it is. Many businesses have LRBP, Long Range Business Planning. LRBPs state the projected economic health of the respective industries. Obama has a fudge factor against him because he has stated that he will significantly increase taxes, screw with global markets, significantly increase employee costs, and significantly increase regulations. So, any smart business is pulling back risky spending such as increased inventories, R&D spending, and other non-critical spending that can wait 4 years.
Up to the election my company hasn’t decided to decrease anything, even under the current economic numbers, but with Obama, they are. He is seen as a killer of any hope for a positive economic condition. He and the Democratic Congress intend to spend like drunken sailors and stiff businesses with taxes and regulations.
“But just wait until General Motors makes their announcement tomorrow. Hmmm, how about a GM/Mooney merger?”
Whatever it takes to get my flying car, I’m all for it!
My brother in law just moved to Savannah to work for Gulfstream. He said they had a few year backlog of orders. Interesting.
Obomba's fault.
I wonder how many people just voted to put their employers out of business......I guess Hussein will pay their mortgages and cars off for them.
One condition to remember is AV-GAS. It was sitting around $6.50 a gallon for a longtime and today it is around $5.25. That killed general aviation participation. Schools with heavy student loads are now begging for students. Clubs are seeing aircraft having less than 10 hours a month rented on them when 40 hours a month is the target number to break even.
When I fly the skies are fairly empty now. I flew last weekend across Colorado and came across only a single Air Force C-130. Usually I’d cross at least a dozen other GA aircraft.
If you look at aso.com (Aircraft Shopper Online), aircraft prices have dropped significantly. When there used to be maybe a dozen or so airplanes of a type for sale there are now 100. Prices that were $125K are now $75k or less and seriously negotiable.
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