Aerodyne, a company promising affordable aircraft, faces collapse amid fraud claims and unpaid staff.
St Athan: Aerodyne was supposed to create affordable flying vehicles. They aimed for an £18 billion operation with 250 employees. But things went wrong. The company never produced a single aircraft and is now in deep trouble.
In 2023, Aerodyne moved into Bro Tathan aerospace park. The Welsh Government praised them as innovators. But former staff say they never saw any aircraft made. The owner, Raja Iyengar, has a history of dissolved companies.
Iyengar claimed to have ties with a Polish aircraft manufacturer. However, that company said he only ordered two aircraft that he never paid for. Former employees are still waiting for £77,963 in unpaid wages, despite court orders.
Documents show Aerodyne had around £60 million in debt. Iyengar admitted he hadn’t been paying tax deductions on wages, which he called fraud. He refused to comment further due to ongoing legal issues.
The Welsh Government is under scrutiny for its oversight. Financial documents from Aerodyne showed wildly inflated figures compared to official records. Despite warnings from former staff, the government helped recruit for the company.
Aerodyne claims to have sold over 1,700 aircraft in 22 countries. But records show it was founded in 2019. Iyengar has not clarified this discrepancy. The company markets itself as a maker of low-cost flying vehicles.
Former staff described Iyengar as charismatic. He could charm investors easily. But many employees left without pay, including Ian Martin, who worked there for four months without receiving a salary.
Martin was working on a factory deal at Bro Tathan. Iyengar promised big contracts for air ambulances and drones. But the financial reality was starkly different, with claims of over £300 million in earnings that didn’t match actual accounts.
As time went on, excuses for missed payments piled up. Iyengar claimed banking issues and even lived with Martin for two weeks without paying for anything. Martin eventually raised concerns about hiring more staff without knowing how to pay them.
Plans for the factory changed frequently. Iyengar scrapped the Welsh factory idea, then later claimed it was still happening. New hires came and went, with many leaving due to unpaid wages.
Another COO, Ian Thomas, joined in November 2023. He received some pay but had to chase Iyengar for it. Thomas found the company lacked technical data and was far from producing anything.
Thomas traveled to Poland to meet with a supposed business partner. However, that partner denied any real connection to Aerodyne. Iyengar’s claims about partnerships were misleading, according to the Polish manufacturer.
As months passed, Thomas faced unpaid wages and tax issues. Iyengar acknowledged the tax problems but did not provide clear answers. Eventually, Thomas was dismissed without notice, despite winning a tribunal for unpaid wages.
Aerodyne went into liquidation last August after HMRC took legal action. The company’s debts were significant, and its assets were minimal. The Welsh Government is now facing questions about its due diligence in this case.
Iyengar claims he is fighting to reverse the liquidation and blames former employees for the company’s downfall. The Welsh Government insists it followed proper procedures and did not provide funding to Aerodyne.
