Hawker Beechcraft

Hawker Beechcraft has posted a third straight month of losses as it works its way through bankruptcy proceedings. Court documents filed Tuesday and obtained by Eyewitness News show the company posted a net loss of $33.8 million last month. In July, Hawker Beechcraft posted a $33.4 million net loss. In June, the planemaker had a nearly $34 million loss. Court documents also show that the court granted a 120-day deadline extension for Hawker Beechcraft to file their Chapter 11 plan.

The same week workers get layed off at Siemens in Hutchinson and Hawker Beechcraft in Wichita, the latest unemployment numbers show a slight improvement. "I usually get about ten miles in every day, depending on what errands I have to run to make sure I have food and everything for the family," Brice Gordon says. Gordon is on foot and out of work, with a broken-down car a family to feed. "They're counting on me, so every second I go without being employed is a heartache and a half," Gordon says.

Hawker Beechcraft's request to pay top executives more money is being disputed by the Machinists Union.  The International Association of Machinists and Aerospace Workers filed a formal objection in federal bankruptcy court Wednesday. Last week, Hawker Beechcraft asked the federal bankruptcy court permission to pay its leadership team more money.  The team is made up of eight positions and according to court papers the execs could see bonuses up to 200% of their base salary.

The CEO of Cessna parent company Textron says his company is watching the situation with competitor Hawker Beechcraft. During a conference call this morning, Scott Donnelly said that Hawker Beechcraft has assets in which Textron could have an interest and would be a good fit. Donnelly qualified that by saying the price has to be right, whether it's the entire Hakwer Beechcraft operation, or just the defense operation. Hawker Beechcraft filed for Chapter 11 bankruptcy protection this year.

The Machinists Union filed paper in bankruptcy court Monday, opposing "an attempt by Hawker Beechcraft, Inc., to expedite the sale of its assets. " Hawker announced last week it has a tentative deal with Superior Aviation of Beijing.  The deal calls for the Chinese company to buy Hawker for $1.79 billion. The International Association of Machinists says the sale has "broad implications. "  “The sale should not be rushed through without adequate scrutiny by all interested parties, including federal regulators, state officials and the Wichita community," says IAM President Tom Buffenbarger.  "As the necessary review process has not yet commenced, giving Superior the exclusive right to negotiate the purchase of Hawker at this time is premature.” In the court filing, the IAM says it's concerned that the sale could mean commercial and military-related technology could be transfered to China and that could lead to the loss of jobs.

In an 83-page motion filed Friday, Hawker Beechcraft asks the federal bankruptcy court permission to pay its leadership team more money. In the motion is says "The debtors' senior management team will play an indispensable role in the performance of the business over the next few months. " It also says "...individual members of the SLT (senior leadership team) have worked around the clock (sometimes literally), shouldering responsibilities that are well above and beyond their day to day duties outside of chapter 11.” The team is made up of the following positions and according to court papers could see bonuses up to 200% of their base salary: Chairman Executive VP of Operations VP of Human Resources VP of Engineering Executive VP and General Counsel Senior VP of Global Customer Support Chief Financial Officer Executive VP of Customers “In this case it's important to point out that Hawker is still operating, they're in bankruptcy and they're trying to do two distinct important things at the same time,” says Wichita bankruptcy attorney Eric Lomas.

Wichita aviation experts are optimistic that Hawker Beechcraft's sale to a Chinese company will bring an infusion of cash to the Wichita planemaker. Aviation consultant Dave Franson told Eyewitness News Hawker's intent in selling to Superior Aviation of Beijing is to try and minimize the impact that the bankruptcy would have on the product line, Hawker's workers and its customers. “I'm hopeful there will be a minimal impact on the company,” says Franson. “But even when these deals are made, and it's said that nothing will be changed, it's amazing how change does occur over a period of time.” Hawker Beechcraft filed for Chapter 11 bankruptcy in May. Under the terms of the agreement, Superior will buy Hawker for $1.79 billion.

Struggling planemaker Hawker Beechcraft will be acquired by a Chinese firm the company announced Monday afternoon. Hawker Beechcraft says Beijing-based Superior Aviation Beijing Co., Ltd. plans to maintain Hawker Beechcraft's existing operations while investing capital in the company and its business and general aviation product line. Under the terms of the deal, Superior would purchase Hawker for $1.79 billion. It would make payments over the next six weeks to support Hawker's on-going operations.

At least six companies are interested in buying some parts of Hawker Beechcraft. That's according to a weekend filing by the company in bankruptcy court. The June 30 filing shows Hawker initially identified 35 buyers.  From there, Hawker narrowed the list down to six. Each of those companies has visited Hawker's headquarters and manufacturing plant. The disclosure statement on reorganization filed over the weekend does not contain a plan for reorganizing the company as a standalone business.

Hawker Beechcraft is laying off 150 hourly and non-hourly employees at its Wichita facility. The planemaker announced the cuts in a letter to employees on Friday. "As we continue the process of balancing our production levels to market demand, we face the difficult task of making additional changes to previously planned schedules and resizing our work force," CEO Steve Miller and Chairman Bill Boisture said in the letter. Those being laid off received a 60-day Worker Adjustment and Retraining Notification (WARN)