More Layoffs At Cessna

Kerry Lynch

Cessna Aircraft is continuing to lower its production schedules for 2009 and 2010, company parent Textron said.

The move will result in another round of layoffs and a two week furlough in July. "Most of the company's commercial markets continue to soften in the current economic environment, and credit markets at Textron Financial Corporation remain challenging," Textron said.

Textron did not specify details of the latest round - that is expected to come during the release of the first quarter results on April 29. But Cessna, which at one time employed nearly 16,000, already has eliminated some 4,600 jobs since December.

Cessna Chairman President and CEO Jack Pelton told employees in a letter, "We are all watching the news these days with somewhat more focus than we might have in the past. I've never seen any situation as dynamic as this."

Cessna is hopeful that recent indicators are pointing to the possibility of an improving economy, Pelton said, but warned the general aviation industry historically lags behind the economic cycle.

"While our sales team has risen to the challenge of the times and recorded a number of orders in recent months, we continue to see a slowdown," he said. "Financing continues to be problematic for many customers. Their economic health may have stabilized, but their decision to take delivery of the jet they ordered two years ago now hinges on increased profitability which is still some time away."

This translates into deferred deliveries or, in many cases, outright cancellation, Pelton said. "And though we have vigorously fought to defend our industry, the misperceptions surrounding the use of business aircraft continue," he added.

Photo: Cessna