January 28, 2010
By Alton K. Marsh
Cessna Aircraft’s parent company, Textron, said aircraft sales would improve in the second half of this year, although totals will fall below 2009 levels. Cessna’s revenues decreased $642 million in the fourth quarter of 2009 compared with the corresponding period of 2008, because of lower volumes.
Cessna will increase research and development spending on upgrades to existing models, and even work on unannounced models to be introduced when the market improves.
Textron estimates 2010 revenues will be approximately $10.8 billion, reflecting top-line growth in its Bell, Textron Systems, and Industrial segments, partially offset by decreases in revenue at Cessna and Textron Finance.
Cessna was able to limit losses through lower selling and administrative expenses, largely because of workforce reductions in 2009, the benefit of forfeiture income from order cancellations, and a decrease in write-downs of pre-owned aircraft inventory. The largest order cancellation came from a single customer and amounted to $1.7 billion. Used aircraft prices were mostly flat with a few bright spots for some models. Aircraft usage by customers increased slightly.
For the year there were 289 deliveries including 125 Cessna Mustangs. That is down significantly from the previous year’s 467 aircraft. In 2010, it is expected there will be 225 deliveries including 105 Mustangs.
Cessna’s backlog at the end of the fourth quarter was $4.9 billion, a decline of $2 billion from the third quarter.
Bell Helicopter’s revenues decreased $51 million in the fourth quarter because of lower sales volume, partially offset by higher pricing. Bell also is owned by Textron. Bell’s backlog at the end of the fourth quarter was $6.9 billion, up $1.3 billion from the end of last quarter primarily driven by the V-22 program.
AOPA Pilot Senior Editor Alton Marsh has been a pilot since 1970 and has an airline transport pilot certificate and instrument and multiengine flight instructor certificates, aerobatic training, and a commercial seaplane certificate.
The Aircraft Owners and Pilots Association (AOPA) has awarded its third annual Flight Training Excellence Awards to top flight schools and flight instructors ranked by more than 3,600 flight students who voluntarily reviewed their flight training experience through an AOPA online poll.
For decades, pilots have headed to Bay Bridge Airport in the Chesapeake Bay for scenic coastal flying and great seafood. Check it out after attending the AOPA Homecoming Fly-In on Oct. 4.
Maintenance experts have asked the FAA to clarify whether recurring inspections of Cessna 210-series aircraft can be mandated without following required rulemaking procedures.
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