Russ Meyer has returned to the helm at Cessna Aircraft after the unexpected retirement of chairman and chief executive Gary Hay because of "philosophical differences" with parent company Textron. Meyer retired as Cessna chairman and chief executive in 2000, but was recalled in January to become president of Textron's new Aircraft sector, which combines Cessna with Bell Helicopter Textron and engine manufacturer Textron Lycoming.
Hay's departure is tied to Textron's efforts to transform itself from a holding company into a more integrated enterprise able to share processes and services across all its 40-odd businesses. "Over the past 18 months we have undertaken extraordinary changes to Textron's business model, including the creation of common operating processes," says chairman Lewis Campbell. "The entire management team must be committed to - and engaged in - every aspect of transformation." It was in this context that Hay retired, Campbell says.
Unlike the recent management changes at Bell, Hay's "mutually agreed" departure is not linked to Cessna's operating performance. Although it has been hit, along with the rest of the industry, by falling orders for light aircraft and business jets, the company remains solidly profitable. But Cessna, acquired by Textron in 1992, is also used to operating independently and its parent company is moving towards shared services in areas such as information technology and supply chain management.
Meyer's first task as Aircraft sector president has been to turn around Bell, which has been losing market share to Eurocopter.
Source: Flight International
