Hawker’s Boisture ‘Surprised’ by NetJets Cancellations
Hawker Beechcraft chairman and CEO Bill Boisture said yesterday during a fourth-quarter update conference call that he was “surprised” at the “timing and magnitude” of the order cancellations from fractional provider NetJets. On Monday, the Wichita-based manufacturer said that NetJets had canceled $2.6 billion worth of orders. According to Boisture, Hawker Beechcraft had been in discussions for months with NetJets about its fleet orders, but it was “new information” to him when the fractional said it wanted to cancel what amounted to 90 percent of its orders with the aircraft maker. Boisture noted, however, that the bulk of the NetJets orders were scheduled for delivery between 2012 and 2020, “so there will be no material impact on Hawker Beechcraft’s liquidity or profitability.” Hawker Beechcraft will refund NetJets $12.8 million as a result of the cancellations. The remaining outstanding orders from NetJets for “about 20” aircraft cover a mix of Hawker 900XPs and Hawker 4000s, with the latter type accounting for more than half this order book. Boisture also said the cancellations would not affect planned line rates for 2010 and 2011, though he revealed that Hawker 4000 production is not sold out next year.