Clients aid ailing planemaker

Press, 29 December 1980, Page 21

Clients aid ailing planemaker

PA Hamilton The Hamilton-based planemaker, N.Z. Aerospace Industries, Ltd — financially troubled earlier this year by falling aircraft sales and development delays — has received financial support from shareholder-clients. ■.Company office records show eight companies jointly guaranteed $350,000 of Aerospace’s A.N.Z. Bank overdraft on December 17 and installed an extra representative on the Aerospace board of ; directors, !The. eight are James Aviai tion, Fieldair Holdings, Rob--1 ertson Air Service Holdings; , Wanganui Aero Work, Air

Services (1979), AManawatu Aerial Topdressing Company, Rowley Aviation and Southern Aviation. / James Aviation owns 32 per cent of Aerospace and 18 per cent is owned by Airport Holdings, a Conglomerate of mainly top/dressing firms, including tie other named firms. Aeroipace is an associate company of Air New ■ Zealand. / The general manager of > Aerospa®”(Mr P.Goldsbro) ? says thfre have; been problems <ue to the general ■ economic recession, falling • sales, and delays in develop- ; ing tie new Cresco aircraft. • Agospace will lay off 39

i workers on January 30. 1 , Mr Goldsbro said the re- • dundancies would be necessary as part of a strict 1981 ! work programme which 1 would include other spending t cuts. f The last few days have , brought two boosts. The new i turbine-powered Cresco has - received its type certificate, r so that sales will start in January. Three orders have f been received. ) The Cresco development - was delayed a year after the I prototype crashed a year ago ; and the* tailplane had to be ■ redesigned. The Royal Australian Air 1 Force has agreed to buy IS

CT4 Airtrainer aircraft which have remained in packing cases for years, after the New Zealand Government banned their export on information they were bound for the Rhodesian Air Force which was under a trade ban. Aerospace bought the aircraft back from the original buyers and will refit them for the R.A.A.F. before delivery. That work will replace construction of the Fletcher aircraft for next year, but Aerospace has some Fletchers in stock. Mr Goldsbro says. ■ Continued production of the Fletcher will be decided • on orders and market trends lat the end of 1981.