Hawker Beechcraft Bankruptcy Plan Targets Lower Bizjet Production

As part of its recent bankruptcy filing, Hawker Beechcraft submitted a “Project Flight” plan outlining three potential options for moving forward, all of which preserve the company’s piston, King Air and military aircraft sectors while doing away with its Premier light jet program.

Also potentially on the chopping block is the Hawker 4000, with the company calling the prospect of attaining the cost reductions needed to continue production of the model "highly unlikely."

Of all the options, the one aligned with the highest margins is the plan that eliminates all business jet production.

The options come after Hawker Beechcraft reached a bankruptcy filing agreement that would wipe out a whopping $2.5 billion in debt and $125 million in annual cash interest liabilities piled on by years of the ongoing recession and poor bizjet sales.

While reps say they hope to emerge from the bankruptcy proceedings as an independent company, Hawker Beechcraft lawyers say they have received offers from potential bidders interested in purchasing the company.

Exactly what path forward the debt-plagued company will carve out is yet to be seen. Lawyers are scheduled to submit a firmer restructuring plan to the bankruptcy court at the end of the month.