As 2016 began, the most successful seller of Light-Sport Aircraft, Flight Design GmbH of Germany, faced a daunting financial situation that resulted in significant actions to remedy the situation. In the space of a few months, the company has worked diligently with its creditors and the forward view is taking an agreeable perspective.
“After a challenging first few months of 2016, things are looking up at Europe’s Flight Design GmbH,” said Tom Peghiny, president of Flight Design USA, the North American importer of the LSA. “After seeking and gaining acceptance of voluntary insolvency under German law, the company has worked with dealers and suppliers to reorganize and continue producing aircraft at their facilities in Ukraine and Germany.”
Peghiny noted that the most important news for existing owners of Flight Design aircraft was the immediate investment to ensure the continuation of safety-related fleet surveillance. This is a key component of Continued Operational Safety Monitoring (COSM), which is of primary importance to European regulator EASA, America’s FAA, and aviation regulators worldwide.
In parallel, the Flight Design engineering staff has focused on continuation of all current approvals and completed an EASA audit at the company’s production facilities the third week of July, he reported.
“Newly manufactured metal and composite spare parts are being shipped to customers as a result of successful negotiations with the company’s major supplier network,” observed Peghiny. “Several aircraft that were in the process of manufacture are now nearing completion and approval for delivery to their respective customers.”
Peghiny suggested the most hopeful news is that after successful negotiations with major dealers, new aircraft orders have been received and are now in the process of being delivered.
This is particularly good news for suppliers, employees and supporters of Flight Design,” he said.
“We are very pleased to see things moving again,” said Daniel Gunther, COO of Flight Design GmbH in Germany. “It shows good faith from our dealers and suppliers to help us now when we really need it. We have received strong support from our employees as well. We look forward to delivering these new orders and moving forward,” said Gunther.
As these developments continue, negotiations with potential investors are currently in process, company officials add.