August 12, 2009

Hawker Beechcraft management told employees the company was going to reduce its workforce and make changes in employee benefits. The information came in a letter from Chairman and CEO Bill Boisture.

In the letter, Boisture said Hawker continues to face "significant economic challenges". "Buyer confidence is low, financing more difficult, and in the U.S., which is our predominant market, business aircraft have been disparaged by our political leadership. These combined factors have significantly reduced demand for
our products and recovery is difficult to forecast with certainty", Boisture wrote.

Boisture said workers will receive more detailed information next week.

Hawker has cut 2,800 jobs since late 2008. The planemaker also placed workers on furloughs as a way to control costs.

--Letter from Bill Boisture--

We continue to face significant economic challenges in our worldwide general and business aviation marketplace.

Buyer confidence is low, financing more difficult, and in
the U.S., which is our predominant market, business aircraft have been disparaged by our political leadership. These combined factors have significantly reduced demand for our products and recovery is difficult to forecast with certainty.

Consequently, we are making a host of difficult business decisions to preserve our company. These decisions will include a reduction in force and changes to employee benefits. You will receive more detailed information next week regarding these actions.

We remain committed to maintaining important core competencies so we are well prepared and positioned for the economic upturn when it occurs. These are indeed unprecedented times. We must take these necessary actions to ensure we stay financially strong and position Hawker Beechcraft for a successful and bright future.