Cessna Aircraft has almost halved its 1997 single-engined-aircraft production plans - but the company remains optimistic that sales in 1998 and beyond will reach their targets.
Instead of delivering about 1,000 aircraft this year (made up by $150 million-worth of new 172R Skyhawks and 182S Skylanes), the Wichita-based company now says that it can deliver between 500 and 650 aircraft, valued at around $75-100 million.
Despite the reduction, Cessna still expects to catch up in 1998 and 1999, because initial sales are significantly better than predicted.
"Sales are ahead of expectations, and our pace is improving," says the company. "We still expect to have delivered between $350 million- and $400 million-worth of single-engined aircraft by the year 2000," it adds.
Despite meeting most of its earlier targets and deadlines, starting up production, hiring staff and accelerating production has been slower than had been hoped.
At the start of 1997, Cessna employed about 300 at its Independence, Kansas, single-engine operation, and almost an equal number making components in East Wichita. To support its 1997-8 production plans, the company had hoped to have about 950 people employed at Independence by the end of this year, with a similar number at the Pawnee components production plant.
Cessna has had to fight to attract and retain workers, however, as have other aviation companies in Wichita. Expansion on the CitationJet and Caravan turboprop lines, as well as Cessna's return to singles production, has contributed to internal pressures, but the real pressure has come from Boeing Wichita, which added more than 5,000 staff in 1996, while Learjet and Raytheon Aircraft have also expanded.
"This decision to reduce production is the result of reality setting in, and our discovery that bringing the single-engine line-up from ground zero is more challenging we believed. But what doesn't go out of the door this year will next year," says Cessna.
Source: Flight International
