Cessna Cuts 2,300 Jobs, Closes Plant

Largest Corporate Jet Builder Cites Poor Economy, PR Fallout From Use Of Jets By Companies Seeking Bailouts

(CBS/AP)  Cessna Aircraft Co., the nation's largest builder of corporate jets, is laying off 2,300 workers and closing its Oregon plant as it tries to restructure its product line amid declining plane orders.

The Wichita-based company said Wednesday that it had started laying off 1,600 hourly workers across the company. An additional 700 salaried workers will lose their jobs in mid-June, and a companywide, four-week shutdown starts June 22.

Of the hourly jobs being cut beginning Wednesday, 1,300 will be in Wichita and 121 will come from Cessna's manufacturing plant in Independence, Kan.

Most of the 700 salaried jobs will come from Wichita, the company said.

Cessna also said it is closing its plant in Bend, Ore., affecting 109 jobs, though many of those workers may be offered jobs elsewhere. Production of the Corvalis high-performance, single-engine planes at the Bend plant will move to the Independence facility, the company said.

Cessna and its parent company Textron Inc. acquired the plant from Columbia Aircraft Manufacturing Co. in December 2007 for $26.4 million.

In addition, Cessna is discontinuing its Columbus business jets, built in Wichita.

Cessna has laid off 44 percent of its work force since the first round of cuts was announced in November. The company employed 15,500 people last year before the economic downturn slashed global demand for corporate aircraft.

The latest job losses come on top of 4,600 jobs already cut. About 4,000 of those were in Wichita.

"We certainly haven't seen the bottom," company spokesman Bob Stangarone said. "The economy may be approaching bottom but our business typically lags the general economy by a significant amount."

Stangarone blamed the decline in global demand for aircraft to the poor economy, tight finance markets and the financial health of Cessna's customers. He also cited a "public relations issue" sparked by public attacks by politicians on the use of business jets by companies that have sought government bailout money.

Earlier this year, Cessna and Hawker Beechcraft Inc. launched marketing campaigns to convince executives not to let their wings be clipped.

"Timidity didn't get you this far," the Cessna ad read (at left), adding that "true visionaries will continue to fly."

The ad campaign addressed what Cessna called "misinformation" about the business use of corporate aircraft. Most jet-riders are middle managers or technicians, it said, and 85 percent of corporate jets are used by small- or medium-sized businesses.

Parent company Textron Inc. said Tuesday its first-quarter profit fell 63 percent as the recession drove down demand for its corporate jets. It also slashed its 2009 profit outlook. Textron, which also makes Bell helicopters and turf-maintenance equipment, is eliminating 8,300 jobs, or 20 percent of its global work force.

Cessna says it will now deliver 290 to 300 Cessna corporate jets this year - a decline from its previous forecast of about 375 aircraft.

[swin5]

Who are these people that are so blinded they are saying "I see hope in the economy". This is obviously rigged by the pro Obama media. The same media that was saying the economy was bad when unemployment was under 5% is now saying its looking good with 9% unemployment

Posted by jonesjep at 2:35 PM : Apr 29, 2009

Are you old enough to remember when Richard Nixon (or was it Gerald Ford) told us things were getting better because 'inflation is increasing at a decreasing rate'?

Well Comrade Obama just told us a few days ago that things were starting to look better because unemployment was increasing at a decreasing rate. Sound familiar?

For some inexplicable reason, people are enamored with Comrade Obama, leading to an uptick in consumer spending and in the stock market. This story about Cessna, and the news about Chrysler, are the real truth, devoid of the hype and the emotion.

I don't believe in any media 'conspiracy' but I do believe that when people want something to be true bad enough, they convince themselves that it is true and act accordingly.

Reminds me of the Vietnam War where we were always being told how great the war was going all the way up to the eventual defeat.

This economic crisis is no where near ending. And the worst is yet to come, when Comrade Obama's multi-trillion dollars in debt and funny money hits the marketplace, a total collapse may ensue.

[start99]

This maybe cause there uis less demand for corperate jets and who sets the number to be made thru a year and the numbers that are purchased? Guess its like the auto industry...less demand....less CEO's with back bone and just stop building them close down for three months...no lay offs!

[jonesjep]

Who are these people that are so blinded they are saying "I see hope in the economy". This is obviously rigged by the pro Obama media. The same media that was saying the economy was bad when unemployment was under 5% is now saying its looking good with 9% unemployment.

[weedapeapl]

let me guess, they said to fly af1 over NY
Posted by Trust_me_ at 11:51 AM : Apr 29, 2009

That is so stupid it's just pathetic.

This is a news item about the continued job losses under Obama's leadership.

You jerks will just say ANYTHING to defend Obama.

You must be paid shills.

[weedapeapl]

They're not in the aviation class of commercial airlines, which are facing litigation. Posted by credibility2 at 11:09 AM : Apr 29, 2009

Your post is utter nonsense.

EVERY industry, large and small, has been driven to its knees by lawsuits.

I didn't come here to argue with you. I just came to present the FACTS that everybody in the industry knows.

If you refuse to listen to facts, then you have no credibility.

[seriously121]

LOL....go back to listening to Rush, shooting moose from helicopters, having grandkids out of wedlock, giving tax breaks to the rich, and starting a war in Belize moron. Is that enough "straight talk" express for you right-wing knuckle-dragging inbred idiot???

Now that's funny!!!

[Trust_me_]

let me guess, they said to fly af1 over NY

[credibility2]

Cessna makes corporate jets. They're not in the aviation class of commercial airlines, which are facing litigation. The outcry against all things corporate, and let's not forget how much whining and moaning there was when the Auto industry CEOs flew to DC in their corporate jets, have directly related to the drawback in corporations placing new orders, lest the whiny complaining general public throws a hissy fit over what they perceive as wasteful spending. Corporations post-bailout have also tried to sell their aircraft. Notice that the disenfranchised misinformed masses have only gone after corporations with these types of aircraft, and not their sacred celebrities or sport's figures. Wonder why the hypocrisy and inconsistency?

[weedapeapl]

Blame the rabid whiners and complainers who were against all things linked to corporate extravagance,
Posted by credibility2 at 10:50 AM : Apr 29, 2009

Umm, no, sorry. Much as I'd like to agree, I know better.

The number one cause of lost jobs in general aviation is lawsuits and/or the prohibitive cost of liability insurance.

The general aviation industry up to now is less than one-tenth the size it was back in the 1960's or 1970's.

90% of the jobs were lost decades ago when our courts got so lawsuit happy.

Now we are losing the tiny remnant that was left simply because of the economic downturn that occurred, coupled with the fact that business leaders can see that Obama has absolutely no clue how to restore the economy and start businesses running again.

So companies are not anticipating any economic recovery in the near future, so they are cutting back spending and calling off orders they would have placed for more planes.

So now we are losing the remnant of what was left after the last huge disaster.

Mommas, don't let your babies grow up to build airplanes.....
They'll zoom all around
And fly high off the ground,
But nobody pays for their grub.

More Jobs Lost

Change you can beleive in?

Yes We Can
Posted by no_obama2012 at 9:59 AM : Apr 29, 2009



LOL....go back to listening to Rush, shooting moose from helicopters, having grandkids out of wedlock, giving tax breaks to the rich, and starting a war in Belize moron. Is that enough "straight talk" express for you right-wing knuckle-dragging inbred idiot???

[presjfk]

As a former field service engineer, flying all over the world in corporate jets. I feel sorry those Engineers still in trhe field who now have to submit to, and have to put up with the long preflight times at commercial airports, and all of the hassles with test instruments not being allowed in carry on baggage. What a pain in the butt that must be! With the use of corporate aircraft there were no such hassles. You took all the needed instrumentation right with you. Throw it in the plane, and go. Really easy times back then. So happy I was old enough to retire beforre now.................Doug
Posted by az97202

Anyone retiring before now has to be happy..regardless of occupation.

[credibility2]

Blame the rabid whiners and complainers who were against all things linked to corporate extravagance, unless of course it was for Congress and the president, for this round of layoffs. Be careful what you wish for. Everyone's job is on the line who either makes or supports a consumer-based product or service, regardless of its cost or the economic group acquiring it.

[weedapeapl]

THAT infuriates me...to see America sacrificed on the altar of their greed.
Posted by ibsteve2u at 9:38 AM : Apr 29, 2009


I'd sure like to agree with you.

But every time I do you argue back at me.

But you are totally correct.

So, here's the part we always have trouble with.

If you're against free trade - then what other kind of trade is there?

Well, here we go again, around and around...

[no_obama2012]

Cessna Cuts 2,300 Jobs, Closes Plant
Largest Corporate Jet Builder Cites Poor Economy, PR Fallout From Use Of Jets By Companies Seeking Bailouts

More Jobs Lost

Change you can beleive in?

Yes We Can

[ibsteve2u]

It is a shame that the Republicans as a whole and the "free trader" Democrats ("blue dogs", or whatever alias they are currently operating under) so hated having to share any of America's bounty that they gave away America's manufacturing infrastructure and a goodly chunk of its service sector, isn't it?

Ask any investment banker: One of the few things that they say that you can trust is that only a damn fool fails to diversify his investments.

The actions of the people who supported America's dumping of manufacturing in favor of becoming primarily a "service economy" revealed them to be fools motivated primarily by greed.

Unfortunately, all of America gets to pay for their failings.

Now if they had "free traded" America's jobs away to lower wage nations, and revamped the tax structure to force America's inequality curve back to the level of 1929 for a GOOD reason, like people were unable to "get ahead"....

But NO! They were already wealthy - they did it because they weren't getting wealthier fast enough to suit themselves!

THAT infuriates me...to see America sacrificed on the altar of their greed.