VACAVILLE, Calif. — ICON Aircraft has made major changes to this year’s A5 delivery plan, significantly reducing production of the light-sport aircraft.
These changes are part of a strategy to improve the A5 production processes and manufacturing supply chain, while simultaneously supporting flight training for ICON customers, according to ICON officials.
Plans announced May 25 include:
- A significant reduction in 2016 aircraft production from 175 to one (1-year delay);
- Shifting early production aircraft to ICON Flight Centers in California, Texas, and Florida;
- A reduction in cost structure and workforce while improving manufacturing;
- Major revisions to ICON’s Aircraft Purchase Agreement in response to customer feedback;
- An infusion of new capital to support the manufacturing improvements.
“The unfortunate fact of the matter is that ICON had an overly aggressive production schedule for 2016,” said ICON CEO Kirk Hawkins. “We are working hard to find the balance between high-rate production and our exacting standards for quality, performance, and affordability. While the A5 is extremely well-engineered and an amazing aircraft to fly, frankly we need to improve its manufacturability. We’ll have to slow down and walk before we run.”
“We opened the production line at our new factory in January with ambitious plans to produce 175 aircraft this year,” said ICON VP of Manufacturing Thomas Wieners. “After completing seven aircraft, with 11 more in production and having received a total of 30 composite airframe sets, we’ve learned that our production process and parts of our supply chain are not yet ready for high-rate production.”
ICON will shift resources to its primary business challenges, according to company officials.
This will result in temporary workforce reductions, primarily of the aircraft assembly team. ICON will support laid-off employees by offering resources, assistance with finding new jobs, and providing notifications when the hiring process resumes as production accelerates, company officials said.
According to company officials, ICON’s investor base “remains aligned with the company’s long-term vision” and has committed a substantial infusion of new capital to support the production changes.
ICON officials say they hope to return to a high-rate production schedule in 2017.
Most customers can expect a delay of approximately one year from their previous estimated delivery dates, according to company officials.
2016 deliveries will be split between limited customer deliveries and ICON Flight Centers (IFCs), the first of which will be at ICON’s facility in Northern California.
The company plans to open additional IFCs in Florida and Texas over the next year to expand customer training and support infrastructure. IFCs will also support training for ICON-authorized flight instructors to expand the regional training network for customers.
“If there is any silver lining to this news,” Hawkins added, “it’s that we are taking this opportunity to accelerate the introduction of ICON Flight Centers. This will give ICON a regional presence that allows deposit holders to get earlier access to an A5 for demonstration flights and training without having to come out to California.”
ICON will continue to take orders for the A5 and will resume sending Production Notices later this year.
The company has also revised its controversial Aircraft Purchase Agreement to include significant changes in response to customer feedback. The new Purchase Agreement will be released in the coming weeks.
“I realize this news will be as big a disappointment for many of our customers as it is for us,” said Hawkins. “I wish there were a better answer. For those who continue to be patient with us, not only will you get special access to fly the A5 at ICON Flight Centers, you’ll own one of the world’s most amazing aircraft.”
Frankly; just another idealistic/noble attempt at trying to get “4 into 3”, and if you convince yourself
and others long enough………………………………………………..?
Do the stakeholders and management have ANY idea what the meaning of the word DEMAND is?
Kirk Hawkins needs to go.
I’ll stick with my Bonanza
Such an awesome little airplane. I hope it doesn’t die due to unobtainable corporate promises.
Since I don’t have 10’s of thousands of $ to put down on a non-refundable deposit for a toy that’s not yet (and may never) be available, I guess I may have to design my own A5 out of Cans and make it for less than $10.00. I’ll bet I’ll have mine before you have yours, (and I can sell it to whomever I want) !!!
It’s pretty obvious that Kirk Hawkins needs to go. He continues to tarnish the Icon brand, and is simply overmatched. His background as an aviator has in no fashion prepared him to oversee a manufacturing concern.
Hey Jay, ….because planes would be flying out the hangars if they didn’t snuggle with Cirrus. You have to commend Cirrus for seeing their way through with the Vision. Look how long it has taken HondaJet to get where they are at (with the backing of Honda). Or should Cirrus have bailed on the Vision all together like so many others. IMO, the i-Con team actually snuggled a little to close to Silicon Valley and venture capital associated with the likes of Tesla.
Hello Thom. Although I can see your point of view, the point I was trying to make is both companies in recent history have made many production and delivery promise dates that they have completely blown through. In your example of Honda, compared to Cirrus and Icon they did not make the large amount of promises and dates on when they would be delivering aircraft to customers, but they did spend a very long time on development. The point I was trying to make is that in my opinion this is a classless money grab that hurts their customers and the company reputation. Many a general aviation company have said and done what Icon and Cirrus have done with their 10 year out pre-sales and the majority of the results have not been good.
Also my nice snarky comment was double edged as you see Cirrus is currently making parts for Icon. I thought it was funny. Additionally Cirrus will get their jet out, not due to the company as a whole, but due to the funding of the project from the Chinese. The Chinese are a savior for Cirrus as they would have never been able to get the jet out without them. I fear it will be many years to never when the Chinese get their money back on that one.
I love this little plane. And almost as much, I love ICON’s sterling example of corporate double-speak. It actually hawks the product, while telling you of its continued unavailability.
A sugar coated wording can’t hide all those orders getting canceled due to their insane purchase agreement. They are getting what they deserve.
At least they’re going to revisit the ridiculous purchase agreement that they initially had in place .
Looks like Icon has been snuggling a little too close with Cirrus. Leading customers on that their product will be delivered next year for the last decade.