Thursday, June 21, 2007
US aircraft manufacturer Adam Aircraft have received US$105 million in funding for two aircraft that they currently produce, namely the Adam A500 and the Adam A700 AdamJet. Both are carbon-bodied six-seat civil utility aircraft. The A500 is piston-engined and has a Push-pull configuration and the A700 is of a new variety of aircraft known as very light jets (VLJs).
A significant proportion of the money came from a senior secured credit facility from Morgan Stanley Senior Funding Inc. Adam Aircraft say that the money will be used to accelerate the production of the A500 and to move the A700 through the certification process with the Federal Aviation Administration (FAA).
Founder and CEO of Adam Aircraft Rick Adam said that investors were given confidence by the company’s order backlog, currently valued at around $800 million. Earlier this month, China’s Hainan Zhong Hang Tai General Aviation Airlines expressed their confidence in the uncertified A700 when they announced that they had placed an order for 50 of the new aircraft. They say that they chose the A700 because it had the largest cabin space of any VLJ, with company CEO Jason Fan adding that he thought the “innovative twin-tail design remind(s) people of a Formula 1 race car.” It is an expensive purchase, as the Chinese government charges a 21% import tax on new aircraft.
Rick Adam said of the new funds “this financing allows Adam Aircraft to aggressively pursue our product development and production growth plans,”.
Adam Aircraft say that the A700 is presently undergoing flight tests and development processes. The company hopes to certify it with the FAA in 2008.