Cessna Halts Production of Entry-Level Bizjets
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Cessna Halts Production of Entry-Level Bizjets
Gents,
Cessna Halts Production of Entry-Level Bizjets
Amid slow sales and an $8 million first-quarter loss, Cessna will pause production of several entry-level business jet models and seek to trim its workforce, the company said yesterday.
Cessna delivered 32 jets in the quarter, down from 38 in the same period last year. Cessna parent Textron's CEO, Scott Donnelly, noted that light jet sales remain weak as buyers seek out bargains in the used jet market and face continued uncertainty about the health of the economy.
“The light market just hasn’t recovered at this point, contrary to our expectations, and so we’re going to scale back some of the production and reduce the number of aircraft that are out there in that space,” Donnelly said. “The demand just isn’t there.”
Cessna’s revenue rose by $39 million in the quarter, but most of that was attributed to sales of used jets. As a result of the disappointing earnings numbers, Donnelly said Cessna will continue to build light jets to a "logical point" in their production cycles "before we shut down various portions of the production line" temporarily for the Mustang, CJ2+, CJ3 and CJ4. He said Cessna will also seek workforce reductions through a “voluntary separation plan.”
Cessna saw a slight increase in sales of medium-size business jets last quarter. The Wichita manufacturer said it remains committed to its new models and is hopeful about the market’s long-term prospects. Production of the M2 and updated Sovereign and Citation X will begin later this year while deliveries of the new midsize Citation Latitude will start in 2015 and the super-midsize Longitude in 2017.
Source: Cessna Halts Production of Entry-Level Bizjets | Flying Magazine
Maybe they do not want to follow Hawker-Beechcraft path... Go figure!
All the best,
Sydy
Cessna Halts Production of Entry-Level Bizjets
Amid slow sales and an $8 million first-quarter loss, Cessna will pause production of several entry-level business jet models and seek to trim its workforce, the company said yesterday.
Cessna delivered 32 jets in the quarter, down from 38 in the same period last year. Cessna parent Textron's CEO, Scott Donnelly, noted that light jet sales remain weak as buyers seek out bargains in the used jet market and face continued uncertainty about the health of the economy.
“The light market just hasn’t recovered at this point, contrary to our expectations, and so we’re going to scale back some of the production and reduce the number of aircraft that are out there in that space,” Donnelly said. “The demand just isn’t there.”
Cessna’s revenue rose by $39 million in the quarter, but most of that was attributed to sales of used jets. As a result of the disappointing earnings numbers, Donnelly said Cessna will continue to build light jets to a "logical point" in their production cycles "before we shut down various portions of the production line" temporarily for the Mustang, CJ2+, CJ3 and CJ4. He said Cessna will also seek workforce reductions through a “voluntary separation plan.”
Cessna saw a slight increase in sales of medium-size business jets last quarter. The Wichita manufacturer said it remains committed to its new models and is hopeful about the market’s long-term prospects. Production of the M2 and updated Sovereign and Citation X will begin later this year while deliveries of the new midsize Citation Latitude will start in 2015 and the super-midsize Longitude in 2017.
Source: Cessna Halts Production of Entry-Level Bizjets | Flying Magazine
Maybe they do not want to follow Hawker-Beechcraft path... Go figure!
All the best,
Sydy
Join Date: Jul 2011
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Just my humble two centsworth...
... but if Cessna are serious about raising Mustang sales they'll have to do something about that disgusting "emergency" lavatory... the existing facility is woefully inadequate when you consider the 'Stang's endurance. A real shame, otherwise a fine aircraft. A little potty and a dangling rag for your $ millions? The Phenom 100 knocks it out of the ball-park.
Cheers
TP
Cheers
TP
