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AIDC Revenue Reaches New 10-Year High

2010/1/7 
On January 6, the Chairman of AIDC, Dr. Y. K. Shung, hosted a routine press conference in the Ministry of Economic Affairs concerning AIDC’s operation status of calendar year 2009.

Dr. Shung state that AIDC had been lack of large scale projects such as the IDF Program to support the company’s major operation since the completion of the IDF production. The global financial crisis made the business operation even more difficult to sustain with the 1.5B worth of existing orders in the commercial sector being withdrawn or cut off.

Yet the management team and the employees were able to work as a team, striving hard to explore new businesses on one hand and reducing cost and expenses on the other. It is estimated that the revenue of the new fiscal year may reach 18.6B (NTD) with net profit of 867M, (NTD) both figures show reverse growth which not only would exceed the statutory revenue of 15.9B (NTD) and net profit of 430M (NTD), but also would make a 3-year consecutive surplus starting from calendar year 2007. This is the most encouraging operation performance since the IDF came off the production line in 1999.

The Chairman also mentioned that the global financial tsunami had brought severe impacts to the entire aviation industry. To cope with the situation, AIDC initiated a crisis management team to respond to the withdrawn orders by taking immediate and proper actions.

Efforts include exploration of new businesses. In the commercial sector, AIDC intensively interacted with leading aircraft and engine builders around the world, such as Boeing, Bell, Sikorsky, GE, HP, Honeywell, Airbus, Bombardier, Rolls Royce, Snecma, and Mitsubishi, to strengthen business bonds and cooperation. In the military sector, AIDC continued to serve its defense customers by initiating upgrade proposals that would meet the customer’s needs and provide quality service to secure the GOCO businesses and enhance logistic services and supplies for its customers.

In molding the corporate culture, AIDC had an operation improvement plan in place, which includes promotion of accountability and financial training courses for all levels of management to reduce costs and increase income and resources. It appeared to be effective as the corporate revenue increased by a steady growth in 2009 despite the gloominess of the economic landscape. AIDC will continue to firstly reinforce the concept and actions of accountability in production, procurement, and account receivables. And secondly, reduce costs and increase competiveness.

While the global recession lingers in 2010, “The management team remains cautious and alert given the current economic environment and, at the same time, will continue our efforts in boosting the revenue and profit growth for the future.” Dr. Shung said.