State Purchases Plane From Belly Up Company

ALBUQUERQUE, N.M. -- The state paid more than $1 million for a light plane, but months later the company that made the plane went belly up.

At the time officials said it seemed like a great deal.

"It's mission specific if we need to fly at low speeds. We fly around the mountains. We fly above the country line," said Lt. Eric Garcia, with the New Mexico state police.

The plane's maker, Adam Aircraft Industries, sold five planes, four to private flyers and one to New Mexico state police, according to the company's finance reports.

State police were the last buyer, before Adam Aircraft filed for bankruptcy in Colorado.

Department of Public Safety spokesman Peter Olsen said there wasn't any idea this company had any financial trouble before purchasing the aircraft.

"Obviously we would not have purchased the aircraft if we had any knowledge, anyway to see into the future what their finances might be down the road," Olsen said.

Because of federal aviation regulations, only the plane's maker can maintain and service many of the parts. But the maker no longer exists and that means there is no manufacturer warranty or agreements.

"I know private owners have more at stake than we do," Olsen said.

The four private owners have grounded their planes with noone to service them.

Olsen said state police have more flexibility with the Federal Aviation Administration because its public use entity.

"If there is an issue with one of the major components, like I said, those companies that made the components warranty the equipment. If the radios go bad, we go to the people who made the radios," said Olsen.

Olsen said despite the status of the other planes that came from Adam Aircraft, the plane is high flying and state police will be forced to fix any problems without help from its maker.

The cost of the plane is $1.8 million and includes the additions to make it usable for police.

The state budgets $50,000 in fuel a year and $150,000 in maintenance.

Adam Aircraft has not responded to e-mails and calls requesting to comment on the issue.