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.
In a financial update released yesterday, Hawker Beechcraft revealed that fractional provider NetJets has cancelled orders for a “significant number” of aircraft from the Wichita-based manufacturer. The aircraft were previously scheduled to be delivered in 2011. The NetJets cancellations will reduce the airframer’s current backlog by about $2.6 billion.
Hawker Beechcraft late last week took the wraps off a new program designed to charge owners and operators of older aircraft a fee for technical support services.
At the NBAA Convention in late October, airborne communications provider Aircell announced a major contract with Hawker Beechcraft. The OEM has selected two new Aircell connectivity systems for its line of midsize Hawker business jets. Customers taking delivery of new Hawker 750s and Hawker 900XPs next year can equip their new jet with Aircell high-speed Internet or Aircell SwiftBroadband as part of the completion process.
For the past several months, analysts and industry observers have been noting signs of a recovery, even as some statistics suggest otherwise. So where is the truth? Is the industry bouncing back, or is it experiencing a yo-yo effect and there’s more down to come?
“It depends,” in the noncommittal words of one analyst.
The employees of Hawker Beechcraft’s Little Rock operation are facing the company’s next round of layoffs. Hawker Beechcraft employs about 8,000 workers company-wide, including approximately 800 at the Little Rock completion center. The company announced last February it planned to lay off 2,300 employees this year due to the down economy. Last May about 150 workers were released at the facility.
Golf Champ Garcia To Visit Hawker Beech Chalet
Fractional ownership of private aircraft seems to be a struggling business model in North America and Europe but it’s alive and well in this part of the world, according to NetJets Middle East (NJME). The company, which is owned by Saudi Arabia’s National Air Service and is affiliated to U.S.-based NetJets Inc.
During an earnings conference call yesterday, Hawker Beechcraft reported a drop in business and general aviation (B&GA) sales of $98.6 million for the third quarter of this year compared with the same period last year. B&GA deliveries during the same period dropped to 64 from 86 aircraft. The 64 aircraft include 25 jets, 30 turboprops and nine piston aircraft.
For Cessna Mustang owner Jeff Greenberg, NBAA’s 62nd Annual Meeting & Convention just wasn’t long enough. Attracted to the event held last month in Orlando by NBAA’s more than 1,000 exhibitors and the Light Business Airplane Conference sessions, Greenberg said he really wished the show lasted one more day.