Raytheon/Flight Options

[fracman]

NetJets Cancellations

Posted on Thu, Apr. 17, 2003

Cessna's quarter full of financial turbulence
The planemaker's sales, revenue and profits are down significantly compared with last year.
BY MOLLY MCMILLIN
The Wichita Eagle

With the sluggish economy continuing to hurt sales, Cessna Aircraft Co. delivered 17 percent fewer jets during the first three months of the year and posted lower revenue and profits.

Cessna delivered 50 business jets during the first quarter of 2003 compared with 60 for the same quarter a year ago.

Cessna revenues also dropped $89 million when compared with the same period, while profits declined $20 million.

Cessna's first-quarter results were reported Wednesday by officials of its parent company, Textron Inc.

Cessna has lowered its projections for business jet deliveries twice since the beginning of this year. The company now expects to deliver 180 to 195 jets in 2003.

A small portion of Cessna's 2003 production remains unsold. The company took orders for 22 business jets in the first quarter of the year.

Cessna is on schedule to deliver its new CJ3 next year and the new entry-level business jet, the Mustang, in 2006, said Lewis Campbell, Textron's chief executive. The CJ3 is expected to make its first flight any day.

Cessna announced last month that it would lower production schedules and lay off 1,200 workers in May -- about 11 percent of its work force -- largely because of a cancellation in orders from its largest customer, NetJets, a fractional ownership company.

Cessna also plans to furlough 6,000 workers

 

[SheGaveMeClap]

I'll add fuel to the fire...... looks like someone's point was proven. Good article Fracman.

 

[fracman]

Cessna Deliveries

It's a few more than 15 airplanes - current projection is for 55-70 fewer deliveries in 2003 versus original projections. I would not be surprised to hear about additional production cuts, since they have announced 2 in the first 3 1/2 months of the year.

January 23, 2003

Cessna's parent downgrades 2003 jet deliveries
Jerry Siebenmark

Textron Inc., the Providence, R.I.-based parent of Cessna Aircraft Co., has downgraded the Wichita business jet maker's 2003 delivery target from 250 to 220.

 

[x402]

You don't need a big full page add to say that Raytheon has kicked in the door and is going to clean house. The new guy in charge is a " mergers, aquisitions and divestitures" expert. Take it from that starting point and do what you will.

As for the Netjets fleet, we are still taking deliveries and we have hired 55 pilots this year so far. As many as expected, no, but the trend is still up and USA Netjets is still showing a profit.

I'm not sure the Wichita Eagle knows the difference between a cow and a bull....but I could be wrong.

 

[RJL]

I don't get why Fracman is so bitter and against Netjets.

Come on John. You folks at Cessna owe alot to Netjets, and still do. Orders may have slowed down, but without Netjets, you folks would be in much worse shape. As Sales and Marketing VP of Citationshares, I would think you would act more professional and leave the BS on these message boards to us grunting pilots. I know Netjets is your biggest competitor, but Netjets is also Cessna's biggest customer. And 50% of Citationshares is owned by Cessna.

It's one thing when a customer buys less from you, it's another when they stop buying ANYTHING from you. Hasn't your income and savings been affected with this bad economy? Mine sure has. Have I been buying less of everything that I usually do? Yes. Will I buy more when times get better? Yes. Did I stop buying ANYTHING from the companies and stores I like doing business with that supply me with decent products and services? No. I just buy less. Cessna makes a pretty darn good airplane (in my opinion). Stop complaining about Netjets and spend more time selling Citationshares.

 

[fracman]

News is news - sounds like your the one who's bitter dude.

 

[RJL]

I'm not bitter, but thanks for your concern.

I'm sure someone in your postion should have a better chance at job security than many of us right now. Right? Just ask the person who used to do your job at Flexjet, Avolar, and Travel Air.

 

[Dep676]

USA Netjets is still showing a profit.

I just read in AIN or the WSJ that Uncle Warren said that none of the NetJets made any money last year. Might want to call him and ask for your self.

 

[vixin]

How about the contract?

NJA is not going to keep that small U.S. profit with 100% raises or 25% for that matter.

I am not trying to start flame bait here!!! Just wondering how its going to work

What is NJA crew to aircraft ratio?

 

[vixin]

You also need to look at how other companies ratios are. Their other expenses ie: hotels. Who said CS was making money. All I am saying is that the slim profit margin will be gone for the raises. You are saying that CS has lower Mang fees and pays their pilots more. So does that mean that they are more efficient and NJA will need to raise fees to cover the new contract? Will NJA have to become more efficient or both?