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Cessna overhauls strategies to combat the recession

Cessna Aircraft is making big adjustments to manage through the slump of in the business jet market. At the same time, the manufacturer is also preparing for its eventual recovery.

“Our strategy at Cessna is still rock solid, and I think it’s very sound,” said Lewis Campbell, chairman and CEO of Textron, the parent company of Cessna.

The company continues to develop new and improved products to update its fleet, despite the cancellation of its Citation Columbus project earlier this month. The Columbus would’ve been Cessna’s largest jet in its fleet.

Campbell says that the company needs to make products that defend its core in the market—small to midsized business jets.

“When this market comes back, I think we’re going to be particularly well-positioned to ride it up at a pretty good rate,” explains Campbell.
Another integral part of the plan is to sell more than 100 entry level Citation Mustang jets before the end of 2009.

Campbell describes the Mustang as the product that brings people into the fleet. He says that customers who buy Mustangs often comeback and upgrade to higher level Citations.

Cessna has had more than 8,000 job cuts due to the recession. The company has also reduced its production demands to meet less demand. With so many cuts, the company is staring at a lower delivery rate come 2010.

Source: The Wichita Eagle