Aerodyne’s ambitious plans for affordable flying vehicles have collapsed amid chaos and debt, leaving employees unpaid and the government questioning its oversight.
St Athan: Aerodyne was meant to be a big deal. It aimed to create affordable flying vehicles and bring 250 jobs to Wales. Instead, it ended up in chaos, with angry employees and serious debt.
The Welsh Government praised Aerodyne, calling it an innovative company. They even featured it in promotional materials for an export market in India. But former staff say they never saw any actual aircraft being made.
Raja Iyengar, the owner, claimed to have ties with a Polish aircraft manufacturer. However, that company said they only sold him two aircraft that he never paid for. Employees are still waiting for nearly £78,000 in unpaid wages.
WhatsApp messages from Iyengar reveal he knew he wasn’t paying taxes, which raises serious fraud concerns. He declined to comment, citing ongoing legal issues.
The situation has led to questions about the Welsh Government’s oversight. Financial documents from Aerodyne showed wildly inflated figures compared to official records. Despite warnings from former staff, the government continued to support the company.
Aerodyne claimed to have sold over 1,700 aircraft in 22 countries, but records show it was founded in 2019. Iyengar has not clarified this discrepancy despite being asked multiple times.
Aerodyne marketed itself as a maker of low-cost flying vehicles, aiming to revolutionize air travel. Former employees described Iyengar as charismatic, able to charm investors easily.
Staff felt he operated in high-powered circles, claiming to meet with influential figures. However, many of these claims seem unsubstantiated, raising doubts about his credibility.
After joining Aerodyne, Ian Martin, the chief operating officer, never received his promised salary. He worked hard to secure a factory deal but faced constant excuses for missed payments.
As time went on, Martin’s financial situation worsened. He even let Iyengar stay at his home without paying rent. Eventually, Iyengar scrapped plans for the factory, leaving Martin in a tough spot.
New hires faced similar issues. Ian Thomas, the next COO, also struggled to get paid. He found the company lacked the technical data needed for production and faced constant cancellations of important events.
Thomas discovered that Iyengar had made claims about partnerships that were not true. A Polish manufacturer denied any real connection with Aerodyne, stating they only sold two aircraft that were never paid for.
As months passed without pay, Thomas confronted Iyengar about tax deductions that hadn’t been made. Iyengar admitted he was aware of the issue but did not provide a solution.
Aerodyne went into liquidation last August after HMRC took legal action. The company reported debts of nearly £1.5 million and assets of just £1,000.
Despite the chaos, the Welsh Government insists it followed proper procedures. They claim no public money was given to Aerodyne, but questions remain about their oversight.
Former employees believe the government should have been more cautious. They warn that lessons must be learned to prevent similar situations in the future.
