Cessna optimistic for growth

Cessna, part of conglomerate Textron, faces stiff competition in the corporate aircraft market.

Once-minor players such as Brazil’s Embraer are crowding the formerly uncompetitive market. But Brad Thress, Senior Vice-President of Business Jets, Cessna, insisted that the company’s unique strengths — its range of products and heavy spending on development — mean it will be well placed to benefit once the market recovers.

Cessna returned an operating profit for 2012 and 2011, but reported a $23-million (about Dh84.5-million) loss for the second quarter of 2013 and a $50-million loss for the second quarter because of a changeover between models of its longest-haul Citation jets.

At the heart of the problem facing companies such as Cessna, said Loren Thompson, an industry analyst at Virginia-based Lexington Institute, is intensified competition. “It’s becoming true of almost every manufactured product. As the barriers to trade come down, you compete with just about everybody. I’d like to know how they distinguish their product in such a crowded marketplace,” he said.

The company maintained investment after the 2008-09 financial crisis, said Thress, and will bring three aircraft to the market in the next few months including an upgraded version of the Citation Sovereign and Citation X.

— The New York Times