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On the Record With
JACK PELTON, PRESIDENT & CEO, CESSNA AIRCRAFT COMPANY
Cessna will continue to update its model line with new and replacement airplanes, says president and CEO Jack Pelton. "In the last ten years we have had 16 new single-engine and Citation products, and our strategy going forward is to continue that improvement."
Some new models may expand the Cessna range, says Pelton. "The delivery of the Mustang will come upon us quickly, and then we have to decide whether to grow the Mustang or go to a smaller airplane," says Pelton. At the far opposite end of the market, Cessna is looking at a supersonic business jet, "but until the technology evolves to let us fly overland, it's not very practical. The market for an over-seas product is not big enough."
But, Pelton underscores, Cessna "will not take our eyes off our current segments. We'll continue to field new and enhanced products, or we'll replace our products when the technology evolves to that point." For instance, Pelton points out that the new CJ3 is much the same size as the older Bravo.
Pelton predicts that new technology will continue to be concentrated in engines, systems and avionics rather than the airframe. "The engines will be more fuel-efficient and environmentally friendly in terms of emissions and noise, and will play a greater role in systems as the aircraft becomes more electric. Avionics go through a step function in price and performance every couple of years."
Pelton is particularly excited about the new avionics on the Mustang: "A revolutionary difference, particularly in situational awareness." But the new technologies will be mature: "This market is not really a technology testbed." Pelton looks at the more-electric Boeing 7E7 as a technology leader for the rest of the industry.
Development of the Mustang is on track, with the first of three flying prototypes due to take to the air in May 2005 and 230 orders in hand. From a competitive viewpoint, Pelton sees the Mustang as being larger and more comfortable than the Eclipse—"nobody's directly in our space". Eclipse, of course, is claiming ten times as many orders than Cessna. "My hat's off to them if they can do it," says Pelton, "If they've sold that many aircraft, it's a revolution and we'll all be envious."
Pelton believes that Eclipse—of all the new competitors—"understands the capital investment that is needed. It's very tough to try to fund it incrementally." Pelton notes that schedule slips lead to lost sales and discourage investors. "We've been doing this for 77 years and we've never found it to be easy."
Pelton is "really encouraged that we're seeing a recovery." Cessna expects to deliver 180 jets by the end of the year, but will jump to 225 Citations in 2005. This year's deliveries have been swollen by the benefits of the bonus-depreciation tax incentive, but next year's figures "are the natural result of economic improvement." The market improvement, Pelton says, "is across the board, not just one sector," and growth in international sales is helping to offset a weaker-than-expected fractional market.
Cessna is exhibiting at Booth 6000 here.
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