Cessna

Cessna Aircraft Company
Type Subsidiary
Industry Aerospace
Founded 1927
Headquarters Wichita, Kansas
Key people Jack J. Pelton (Chairman, President, and CEO)
Products General aviation aircraft
Business jets
Employees 15,000 (2008)[1]
Parent Textron
Subsidiaries Columbia Aircraft
Website www.cessna.com
1951 Cessna 195
Cessna 337 Skymaster, a "push-pull" aircraft
1979 Cessna 340A
1977 Cessna 404 Titan II
Cessna 350 at Sun 'n Fun 2006
Cessna 525 CitationJet
Cessna 560XL Citation Excel of the Swiss Air Force

The Cessna Aircraft Company is an airplane manufacturing corporation headquartered in Wichita, Kansas, USA. Their main products are general aviation aircraft. Although they are the most well-known for their small, piston-powered aircraft, they also produce business jets. The company is a subsidiary of the U.S. conglomerate Textron.

Contents

History

The company traces its history to June 1911, when Clyde Cessna, a farmer in Rago, Kansas, built a wood-and-fabric plane and became the first person to build and fly an aircraft between the Mississippi River and the Rocky Mountains.

Cessna started his aircraft ventures in Enid, Oklahoma, testing many of his early planes on the salt flats. When bankers in Enid refused to lend him more money to build his planes, he moved to Wichita.[2]

In 1924, Cessna partnered with Lloyd C. Stearman and Walter H. Beech to form the Travel Air, Inc., a biplane manufacturing firm. This company was based in Wichita. In 1927, Clyde Cessna left Travel Air and formed his own company, the Cessna Aircraft Company. Instead of producing biplanes, he instead decided to focus on building monoplanes. The first flew on August 13, 1927.

Cessna Aircraft Company closed its doors from 1932 until 1934 due to the state of the economy. In 1934, Dwane Wallace, with the help of his brother Dwight, took control of the company and began the process of building it into what would become a global success.[3]

During the mid to late 1930s, Cessna developed and produced the single engine Airmaster and the twin-engine T-50 light aircraft.

After World War II, Cessna created the 170, which, along with later models (notably the 172), became the most widely produced light aircraft in history. Cessna's advertising boasts that it has delivered more aircraft than any other company, over 190,000 by the end of 2008.[4]

In 1952 Cessna acquired the Seibel Helicopter Company of Wichita, Kansas. In 1956 Cessna developed and produced the single engine CH-1helicopter.[5]

In 1972 Cessna became the first aircraft manufacturer in the world to build 100,000 aircraft. The 100,000th aircraft was one of 24 Cessnas of various models displayed at Transpo 72.[6]

In 1985 Cessna was bought by General Dynamics Corporation and in 1986 production of piston-engine aircraft was suspended. General Dynamics cited product liability as the cause. The then-CEO Russ Meyer said that production would resume if a more favorable product liability environment developed. In 1992, Textron Inc. bought Cessna and, after passage of the General Aviation Revitalization Act of 1994, resumed production of the piston-engine 172, 182, and 206 designs.

On 27 November 2007, Textron announced that Cessna had purchased the bankrupt Columbia Aircraft company for US$26.4M and would continue production of the Columbia 350 and 400 as the Cessna 350 and Cessna 400 at the Columbia factory in Bend, Oregon.[7][8] There had been speculation that the acquisition of the Columbia line would spell the end of the Cessna NGP project, but on September 26, 2007, Cessna Vice President for Sales, Roger Whyte, confirmed that development of the NGP project will continue, unaffected by the purchase of Columbia.[9]

Since November 2007, the company has been involved in a public controversy regarding the contracting of production of the Cessna 162 SkyCatcher to the Shenyang Aircraft Corporation of the People's Republic of China.[10]

Currently, Cessna produces 2-, 4- and 6-place single-engine airplanes, utility turboprops, and business jets.

Chinese production controversy

On 27 November 2007, Cessna announced the new Cessna 162 would be made in the People's Republic of China by Shenyang Aircraft Corporation, which is a subsidiary of China Aviation Industry Corporation I (AVIC I), a Chinese government-owned consortium of aircraft manufacturers.[11] By manufacturing the aircraft in China, Cessna reports it saved USD$71,000 in production costs per aircraft, or about 40% of the cost. A second reason cited for moving production to Shenyang Aircraft Corporation was Cessna has no plant capacity available in the USA.[10]

Cessna received a high degree of negative feedback from 162 customers and potential customers regarding this decision. Complaints centered around the recent problems with Chinese production of other consumer products, China's human rights record, exporting of jobs, and China's less than friendly political relationship with the USA.[12] The backlash surprised Cessna and resulted in a company public relations campaign to try to explain the decision from a business perspective and assure customers that quality of the aircraft will not be compromised.[13] The reaction to the explanations and assurances has been overwhelmingly negative, although a small number of customers have applauded the production in China.[12]

In early 2009 the company attracted further criticism for continuing plans to build the 162 in China while laying off large numbers of workers in the USA.[14]

2008-10 economic crisis

On 4 November 2008, Cessna's parent company, Textron, indicated that Citation production would be reduced from the original 2009 target of 535 "due to continued softening in the global economic environment" and that this would result in an undetermined number of lay-offs at Cessna.[15]

On 8 November 2008, at the AOPA Expo, CEO Jack Pelton indicated that while Cessna sales of aircraft to individual buyers have fallen that piston and turboprop sales to business have not. "While the economic slowdown has created a difficult business environment, we are encouraged by brisk activity from new and existing propeller fleet operators placing almost 200 orders for 2009 production aircraft," Pelton stated.[16][17]

On 13 November 2008, Cessna announced that a total of 665 jobs would be cut at its Wichita and Bend, Oregon plants starting in January 2009. The Cessna factory at Independence, Kansas which builds the Cessna piston-engined aircraft and the Cessna Mustang, was not forecast to see any lay-offs, but one third of the workforce at the former Columbia Aircraft facility in Bend was laid off. This included 165 of the 460 employees who built the Cessna 350 and 400. The remaining 500 jobs were eliminated at the main Cessna Wichita plant.[18]

In January 2009 the company announced 2,000 additional layoffs, bringing the total to 4,600. The job cuts included 120 at the Bend, Oregon facility reducing the plant that builds the Cessna 350 and 400 to fewer than half the number of workers that it had when Cessna bought it. Other cuts included 200 at the Independence, Kansas plant that builds the single engined Cessnas and the Mustang, reducing that facility to 1,300 workers.[19]

On 29 April 2009 the company announced that it was suspending the Citation Columbus program and closing the Bend, Oregon facility where the Cessna 350 and 400 are built. The Columbus program was finally cancelled in early July 2009. The company said "Upon additional analysis of the business jet market related to this product offering, we decided to formally cancel further development of the Citation Columbus". With the 350 and 400 production moving to Kansas, the company indicated that it will lay off 1,600 more workers, including the remaining 150 employees at the Bend plant and up to 700 workers from the Columbus program.[20][21]

In early June 2009 Cessna announced that it would lay-off an additional 700 salaried employees, bringing the total number of lay-offs to 7600 or more than half the employees.[22]

In December 2009 the company announced that it will close its three Columbus, Georgia manufacturing facilities between June 2010 and December 2011. The closures will include the new 100,000-square-foot facility that was opened in August 2008 at a cost of US$25M, plus the McCauley Propeller plant. These closures will result in total job losses of 600 in Georgia. Some of the work will be relocated to Cessna's Independence, Kansas or Mexican facilities.[23]

Cessna's parent company Textron posted a loss of US$8M in the first quarter of 2010, largely driven by continuing low sales at Cessna, which were down 44%. Cessna's workforce remained 50% laid-off and CEO Jack Pelton stated that he expects the recovery to be long and slow. The company has been examining all its operations to maximize efficiency.[24]

Marketing Initiatives

Cessna has always had an active marketing department. This was especially notable during the 1950s and 1960s. During this period, the marketing department followed the lead of Detroit automobile manufacturers and came up with many marketing slogans and buzzwords to describe Cessna’s product line in an attempt to place their products ahead of the competition.

Other manufacturers and the aviation press widely ridiculed and spoofed many of these marketing terms but between Cessna’s designers producing a product the flying public wanted and the work of the marketing department, Cessna built and sold more aircraft than any other manufacturer during the boom years of the 1960s and 1970s.

Cessna 150s produced before 1964, such as this 1962 Cessna 150B, lacked the later Omni-Vision rear window
A 1965 Cessna 150E. The 1964 model 150D and the 150E introduced Omni-Vision rear windows on the Model 150

Marketing buzzwords

Cessna marketing buzzwords included:

Aircraft models

References

  1. Cessna Aircraft Company (2008). "About Cessna - Overview". http://www.cessna.com/about-cessna.html. Retrieved 2008-11-12. 
  2. Article in "Enid News"
  3. Phillips, Edward H: Wings of Cessna, Model 120 to the Citation III, Flying Books, 1986. ISBN 0-911139-05-2
  4. Cessna Aircraft Company (2008). "About Cessna - Overview". http://www.cessna.com/about-cessna.html. Retrieved 2009-01-26. 
  5. "Steve Remington. "The Cessna CH-1 Helicopter; A Record Setter - Fifty+ Years Later". CollectAir. http://www.collectair.com/cessna.html. 
  6. "Cessna at Transpo", Flight International magazine, 1 June 1972, p797.
  7. Textron (November 2007). "Textron's Cessna Aircraft Company to Acquire Assets of Columbia Aircraft". http://investor.textron.com/phoenix.zhtml?c=110047&p=irol-newsArticle&ID=1081833&highlight=. Retrieved 2007-11-28. 
  8. Russ Niles (2007-11-27). "Cessna Gets Columbia". http://www.avweb.com/avwebflash/news/Cessna_Buys_ColumbiaAircraftManufacturing_196671-1.html. Retrieved 2007-11-29. 
  9. "AVweb's NBAA 2007 Podcast #2: A Low-Wing Cessna Single? Cessna's Roger Whyte Explains Why It Makes Sense". 2007-09-26. http://www.avweb.com/podcast/files/2007-09-25b.mp3. Retrieved 2007-10-01. 
  10. 10.0 10.1 Russ Niles (2007-11-27). "Skycatcher To Be Made in China". http://www.avweb.com/avwebflash/news/Cessna_Skycatcher_MadeInChina_196672-1.html. Retrieved 2007-11-29. 
  11. Textron (November 2007). "Cessna Chooses China's Shenyang Aircraft Corporation as Manufacturing Partner for Model 162 SkyCatcher". http://investor.textron.com/phoenix.zhtml?c=110047&p=irol-newsArticle&ID=1081831&highlight=. Retrieved 2007-11-28. 
  12. 12.0 12.1 Aniello, Tom (December 2007). "Making the case for building the SkyCatcher in China". http://web.archive.org/web/20080106070032/http://www.cessnaskycatcher.com/home/124.html. Retrieved 2008-01-03. 
  13. Grady, Mary (January 2008). "Germany's Remos Aircraft Expanding, Challenges Cessna". http://www.avweb.com/avwebflash/news/RemosAircraft_Germany_Expanding_ChallengesCessna_196872-1.html. Retrieved 2008-01-03. 
  14. AvWeb Staff (January 2009). "Cessna Layoffs Continue". http://www.avweb.com/eletter/archives/avflash/1307-full.html. Retrieved 2009-02-02. 
  15. Grady, Mary F. (November 2008). "Cessna Slows Citation Production, Citing Global Economy". http://www.avweb.com/avwebbiz/news/CessnaSlowsCitationProduction_CitingGlobalEconomy_199121-1.html. Retrieved 2008-11-06. 
  16. Niles, Russ (November 2008). "It's a Buyer's Market". http://www.avweb.com/news/aopa/AOPAExpo2008_CessnaAircraft_BuyersMarket_199162-1.html. Retrieved 2008-11-08. 
  17. Durden, Chris (November 2008). "Cessna Announces Possible Layoffs". http://www.kwch.com/Global/story.asp?S=9292651&nav=menu486_2_3. Retrieved 2008-11-04. 
  18. Niles, Russ (November 2008). "Eclipse Misses Payroll: TV Report". http://www.avweb.com/avwebflash/news/EclipseAviation_Misses_Payroll_TVreport_199202-1.html. Retrieved 2008-11-13. 
  19. Pew, Glenn (January 2009). "Cessna Layoffs Continue". http://www.avweb.com/avwebflash/news/cessna_layoff_wichita_textron_pelton_199682-1.html. Retrieved 2009-02-02. 
  20. Grady, Mary (April 2009). "Cessna Will Suspend Columbus Program, Close Bend Factory". http://www.avweb.com/avwebflash/news/CessnaWillSuspendColumbusProgramAndCloseBendFactory_200284-1.html. Retrieved 2009-04-30. 
  21. Grady, Mary (July 2009). "Goodbye, Columbus -- Cessna Cancels Extra-Large Jet Program". http://www.avweb.com/avwebflash/news/CessnaCancelsExtraLargeColumbusJetProgram_200720-1.html. Retrieved 2009-07-16. 
  22. Pew, Glenn (June 2009). "More Layoffs At Cessna". http://www.avweb.com/avwebflash/news/cessna_layoff_wichita_columbus_mustang_200511-1.html. Retrieved 2009-06-08. 
  23. Pew, Glenn (Deecmber 2009). "Cessna Closing Plants, Cutting Jobs". http://www.avweb.com/avwebflash/news/cessna_columbus_mccauley_jobs_cut_wichita_mexico_201673-1.html. Retrieved 2009-12-14. 
  24. Niles, Russ (April 2010). "Cessna Declines Sap Textron Revenues". http://www.avweb.com/avwebbiz/news/CessnaDeclinesSapsTextron_202461-1.html. Retrieved 28 April 2010. 
  25. 25.0 25.1 25.2 Clarke, Bill: Cessna 150 and 152 first edition, pages 5-17. TAB Books, 1987. ISBN 0 8306-9002-0
  26. Christy, Joe: The Complete Guide to the Single Engine Cessnas - Third Edition, page 119. TAB Books, 1979. ISBN 0-8306-2268-3

External links