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Essay on Adam Aircraft Case Study

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Introduction
Rick Adam and John Knudsen founded Adam Aircraft Industries (AAI) in the year 1988. AAI is an aircraft manufacturer company and it produces aircraft for civil and government markets. Adam Aircraft is situated in the South of Denver, Colorado at Centennial Airport (KAPA).
AAI provides a variety of general aviation aircraft, which includes the centerline thrust twin-engine Adam A500 and A700 twin-engine personal jet. Need
Rick realized that most of the aircraft at that time were based on old designs. It was tough to fly and also expensive to own and operate. Demand for used planes were high as they were cheaper than the new ones. But the airplanes become unsafe, as it gets older even when strict maintenance is done. …show more content…

The A700 falls even cheaper than the currently available corporate jet in the market at $2.2 million. Even A500 at $1 million, made of all composites is cheaper than the other twin turboprops in the market.
The story of Adam Aircraft shows that this business venture will clearly make benefit in the industry. The A700 and other jets are considered ideal for the growth of a national air taxi service. The economics of the AAI plan seemed completely within the range of possibility. The company can make money producing just 50 airplanes a year, a target that is easily achievable.
The business can still compete with other companies in the market because the catching point about Adam Aircraft is that they are cost effective and are more efficient. They use new technology and easy to access electronic systems.
Team
Rick Adam, who was formerly Air Force Captain, had the vision for AAI. Before starting Adam Aircraft, he was the general partner in charge of IT with Goldman Sachs and the founder of New Era of Networks. President and General Counsel John C. Knudsen head Adam’s management team. He was a legal representative specializing in Aviation Law, and also worked for five years with the FAA. The strong background of Adam Aircraft Industries with its management team, combined with Burt Rutan's attractive and efficient design, might just modernize the aircraft industry.
AAI should have more

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