Wichita-area aviation manufacturers get more than $100 million to save jobs

Aviation manufacturing companies in Kansas received more than $100 million combined in federal relief funds to save more than 4,200 jobs across the state, with some businesses saving just one job and others saving thousands.

The Aviation Manufacturing Jobs Protection Act is intended to help keep workers on the payroll and avoid further cuts as the pandemic disrupted the industry and led to thousands of unemployed aircraft workers in Wichita.

The legislation was buried in the broader COVID-19 relief bill that was signed into law in March, the American Rescue Plan Act.

Spirit AeroSystems will receive the most of any aviation manufacturing company in Kansas, with $75.5 million meant to protect 3,214 jobs at Wichita’s largest private employer. Textron Aviation, often Wichita’s second largest employer and other giant in aviation manufacturing, was not listed among the first round of recipients.

Learjet received the second largest amount of funding in Kansas at $15 million to protect 502 jobs in the state.

The U.S. Department of Transportation announced the first round of 313 companies across the country to receive the funds, 30 of which are in Kansas. Overall, the state is receiving $100.4 million intended to save 4,284 jobs in aviation manufacturing.

Across the country, aviation manufacturers in 37 states and Puerto Rico received $482.3 million in funding so far to keep 22,500 workers on the job.

Kansas received more funding than any other state in the first round of recipients through the Aviation Manufacturing Jobs Protection Act. The federal agency also estimates the sunflower state will protect more jobs with the funds than any other state in the first round. California and Washington state businesses also received a sizable amount of funds, $85 million and $40.8 million, respectively.

Applications for a second round of funding closed on Sept. 1. The federal transportation agency will announce those recipients later this fall.

While some big names in Kansas aviation manufacturing garnered the highest relief rewards, the funds went to many smaller businesses aiming to protect just a few jobs as well.

Air Capital NDI LLC, based in Wichita, received $26,850 to protect just one job. Goddard Machine received $37,960 in the federal funding to save three jobs.

Nationally, 60% of the companies receiving funds had fewer than 100 employees at the end of last year, and 80% of the businesses had fewer than 250 workers at the time, according to the U.S. Department of Transportation.

The aerospace industry has lost over 100,000 jobs since the pandemic began, with many more workers still at risk of unemployment, according to the federal transportation agency.

The nation’s largest aerospace union, the Machinists Union, lobbied for and later applauded the passage of the Aviation Manufacturing Jobs Protection Act. The union has local lodges in Wichita that represent workers at Spirit AeroSystems, Textron Aviation, Learjet and more.

“Our nation’s aerospace industry has been successful due to the diligent and hard-working workers they employee. That’s why it’s so important that these workers remain on the job,” Mark Blondin, Machinists Union aerospace general vice president, said in a statement. “These men and women are very important to the vitality and recovery of our nation’s aviation industry.”

The bulk of the Kansas recipients are based in Wichita. Companies in Rose Hill, Mulvane, Cheney and Newton rounded out the list of Kansas aviation manufacturing businesses.

Rep. Ron Estes helped introduce the Aviation Manufacturing Jobs Protection Act last fall as a standalone bill, but voted against the legislation when it was included in the American Rescue Plan. He said he was still glad to see his legislation included.

“Most of the bill is partisan bailouts for states and pensions and other non-COVID-related wish list items, which will take away from the few positive aspects like the inclusion of my bipartisan Aviation Manufacturing Jobs Protection Act that will actually help out-of-work Kansans,” Estes said in a statement at the time.

Through the legislation, the federal government contributes 50% of the compensation for eligible employee groups, as long as the company commits to continuing employment of those workers. Businesses can also use the funds to rehire or recall workers it had laid off previously.

“For the past year and a half, our aviation industry workers have helped keep this economy moving, including by supporting the delivery of lifesaving medical equipment and vaccines,” U.S. Transportation Secretary Pete Buttigieg said in a statement. “The funding announced today will save jobs and support the workers who have supported us throughout the pandemic.”

See below the full list of Kansas aviation manufacturing companies that received first round funding through the Aviation Manufacturing Jobs Protection Act.

This story was originally published September 15, 2021 at 4:09 AM.

Megan Stringer

The Wichita Eagle

316-268-6362

Megan Stringer reports for The Wichita Eagle, where she focuses on issues facing the working class, labor and employment. She joined The Eagle in June 2020 as a corps member with Report for America, a national service program that places journalists into local newsrooms to report on under-covered issues and communities. Previously, Stringer covered business and economic development for the USA Today Network-Wisconsin, where her award-winning stories touched on everything from retail to manufacturing and health care.