Cessna Expresses Commitment to SkyCatcher Program for Light Sport Aircraft Market

WICHITA, Kan., March 25, 2009 – Cessna Aircraft Company, a Textron Inc. (NYSE: TXT) company, said today it is fully committed to the Model 162 SkyCatcher program despite two incidents experienced during the flight test program.

“The need for a modern, cost-effective two-seat trainer aircraft has never been greater, and we believe we are well positioned to meet that need,” said Cessna Chairman, President and CEO Jack J. Pelton. “The SkyCatcher program is an important part of our strategy,” he added.

Cessna has produced more than 192,000 aircraft over the past 82 years, including the classic 150/152 and 172 models which have been the backbone of flight training for decades.

In the most recent incident on March 19, Pelton said the aircraft was undergoing a very aggressive spin test regime – power on and cross-controlled – when it entered a spin that was not immediately recoverable. This spin test was one of more than 500 flown to date using various combinations of center-of-gravity positions, power settings, flap settings and control inputs. The pilot deployed the airframe parachute in accordance with the flight test procedure and emerged from the aircraft unhurt after it touched down.

Last September, an earlier test aircraft was destroyed when the pilot parachuted to safety after being unable to recover during aggressive spin testing.

“We test all our aircraft well beyond the limits of what is expected in normal operation. By the time a Cessna aircraft enters service we have the highest degree of confidence in the design, flight characteristics, manufacture and quality of the aircraft,” Pelton said, adding that company engineers have obtained valuable data on the crashworthiness of the aircraft and the operation of the Ballistic Recovery System (BRS) airframe parachute as a result of the two incidents. The BRS is offered as an option on the SkyCatcher.

“We are making every effort to minimize the impact on deliveries to our customers,” he said.

The SkyCatcher is a two-seat Light Sport Aircraft powered by a 100 horsepower Continental O-200 engine. The program was launched in 2007.

Continental Motors Offers Rebates

Continental Motors announces a rebate offer valid on all Genuine Continental New and Rebuilt Powerplants. The rebate comes on the heels of the January 15, 2009, announcement that the Company reduced engine prices by as much as 10 percent depending on model. The additional savings, in the form of a factory rebate on Factory New and Factory Rebuilt powerplants, provide incentive for aircraft owners to install a factory engine rather than electing to overhaul a run-out engine upon reaching TBO.

Factory-rebuilt engines from TCM are true zero time engines that are sold for a guaranteed price — a price that has recently been lowered 10 percent and now includes an additional $1,000 rebate ($2,000 on gear-driven engines) through April 15, 2009. Overhauled engine price quotes are subject to change after post teardown inspection of crankshaft, connecting rods, cases and more. Additionally, some aircraft owners may be confused by what overhaulers refer to as a “zero time since overhaul” engine versus a true “zero time”” engine from TCM. The fact is that only the OEM can manufacture new and factory-rebuilt engines that are “absolute zero time” engines.

Aircraft owners may want to research the many benefits of installing a genuine factory-new or factory-rebuilt engine versus an overhaul service prior to reinvesting in their aircraft. Benefits include:

• Zero Time Logbook – Installing a genuine factory-new or factory-rebuilt engine means that a new engine logbook is issued and starts at zero hours. An overhaul keeps the engine’s cumulative hours and history and does not begin at zero. Thus installing a zero time factory-new or factory-rebuilt engine improves the aircraft’s value for existing or prospective future owners.

• Airworthiness Directive & Service Bulletin Compliance – Every engine that leaves the Continental Motors factory is 100% compliant with all Airworthiness Directives and Service Bulletins in effect through the rebuild date.

• Factory Specifications – Only Continental Motors has the technicians and equipment to build engines to like new factory specifications under its industry leading AS9100 Quality System.

• Turn Time – Generally the installation of a factory-new or factory-rebuilt engine can be accomplished in less than two weeks when the engine is ordered in advance. Overhauls can result in extended down time since the overhaul process involves dismantling the engine, inspecting parts for wear, ordering replacement parts, reassembly and installation.

• Guaranteed Price – The Genuine Continental price guarantees what a consumer will pay for a factory engine. Overhaul quotes generally start lower than the Genuine Continental rebuilt engine price, but can quickly escalate after engine disassembly and inspection if major internal components need to be replaced above and beyond what is included in the overhaul quote.

• Residual Value – A zero time engine has more residual than a high-time overhauled engine. For example a 100 hour TTSN (total time since new) engine retains more value than a 3,600 TT engine with 100 hours TTSO (total time since overhaul) because the overhauled engine is then actually a 3,700 TT engine.

For more information visit www.tcmlink.com.

NEW NATA LEADERSHIP AND BOARD OF DIRECTORS ANNOUNCED

Alexandria, VA, March 24, 2009 — National Air Transportation Association (NATA) President James K. Coyne announced that Kurt Sutterer, president, Midcoast Aviation, Inc., recently assumed the chairmanship of the association replacing Dennis Keith, president, Jet Solutions, LLC. Sutterer became chairman of the association during the last NATA Board of Directors meeting on March 11, 2009.

Sutterer was appointed president of Jet Aviation’s new maintenance and completions organization in North America in March 2006, when Midcoast Aviation was acquired by the Jet Aviation Group.

He joined Midcoast Aviation in 1981 and has served as the company’s president since November 2004. Sutterer started his career at the St. Louis-based maintenance and completions company and held various positions of increasing responsibility, ranging from inspector to manager of technical services to vice president and general manager of Midcoast Aviation operations before his promotion to president.

He is a Graduate of Linn State Technical College and a licensed A&P mechanic.

For more information on Kurt Sutterer and Midcoast Aviation, please click here.

The association also named its new vice-chairman, James Miller, executive vice president from Flight Options. Miller oversees the management of the Flight Options fleet, Aircraft Management, Whole Aircraft Sales & Acquisitions, and Aircraft Completion & Refurbishment.

Miller started his career as an engineer and programmer with IBM Federal Systems Division, having responsibilities for various avionics and ship-board systems design and development efforts. In 1968, he founded Miller Aviation and later Miller Avionics and Miller Information Technologies, serving as their president and CEO.

To view Miller’s complete bio, please click here.

“The last 12 months have been an incredibly volatile time for the general aviation industry,” stated NATA’s Coyne. “We were extremely fortunate to have had Dennis Keith as our chairman to help us navigate through these rocky waters. We now look forward to having Kurt, with Jim as our vice chairman, do the same as the general aviation industry looks to rebound from a dismal 2008.”

In addition to announcing the new leadership, the association also elected three new members to its board of directors. Those three new members include Todd Duncan, chairman, Duncan Aviation, Kenneth Forester, CEO, Meridian Air Charter and Mark Willey, CEO, Bridgeford Flying Services.

Todd Duncan has a life-long association with Duncan Aviation, and has worked at the company since 1989 when he started in Aircraft Sales. Since then, he has served the company in various capacities, most notably as president of the Component Services department and as vice-chairman of Duncan Aviation’s Advisory Board. He is currently chairman of Duncan Aviation.

Duncan began his flying career in 1987, becoming a licensed private pilot in 1988. He then achieved his Instrument Rating and his Multi-engine rating.

Duncan has served on the board of directors for several local nonprofit organizations, including Lincoln Children’s Museum, Cornhusker Bank, Nebraska Wesleyan University, Junior Achievement, Lincoln Chamber of Commerce, Boys and Girls Club of Lincoln and Lancaster County, NATA’ s Air Charter Safety Foundation, and Southeast Community College Foundation. He is a member of the Nebraska Chapter of the Young President’s Organization, and the Aircraft Owners and Pilots Association since 1988.

To learn more about Todd Duncan and Duncan Aviation, please click here.

Kenneth Forester is the CEO of Meridian Teterboro/Meridian Air Charter, companies with over fifty years of experience in the general aviation industry. He is currently qualified in the Cessna Citation. His other type ratings include the Learjet and Gulfstream IV. Forester graduated from the U.S. Air Force Academy and served in the U.S. Air Force flying the F102.

To learn more about Ken Forester and Meridian Air Charter please click here.

Mark Willey is managing partner of Corporate Airpark, and CEO of Bridgeford Flying Services and Actus Aviation. Since 2000, he has continued to develop and improve upon the company’s 63-year legacy. Willey has led the growth of Bridgeford to a world-class FBO, aircraft management, sales and charter provider and premium quality flight school and repair station.

Prior to Bridgeford, Willey was with the DuPont family-owned Atlantic Aviation for 17 years, the last 7 as vice president and general manager of their Wilmington, DE headquarters. He also held leadership positions for a subsidiary of Consumers Glass, Inc.

Willey’s affiliations include serving in various civic and community organizations and on various profit and non profit boards including Hospice, SL Surface Technologies Inc. He is a past member of an Aviation Executive Roundtable and a past member of the NBAA Business Committee. Willey currently chairs the Business Management Committee for NATA, and is a member of the Society of Aerospace Engineers. He is on the Napa Chamber of Commerce Board and the Napa Airport Security Committee, and is a member of the aviation industry renowned FBO 1 peer group.

To learn more about Mark Willey and Bridgeford Flying Services, please click here.

“We are delighted to have such an outstanding and talented new class of NATA board members,” Coyne concluded. “It is critical that the NATA Board of Directors guide the association, ensuring continued economic growth and financial viability while reinforcing that safety is the highest priority for all of its members. Todd, Ken and Mark clearly recognize these core values and will guide our association accordingly.”

To view the complete NATA Board of Directors listing, please click here.

CESSNA’S SECOND SKYCATCHER CRASHES

WICHITA, Kansas – A pilot crash landed an experimental Cessna plane in Butler County Thursday morning. It’s the second time in six months the company’s new Skycatcher has had problems

It may have been flipped over, but the Cessna Skycatcher was still in good shape when it landed in a field about eight miles NE of El Dorado.

“The parachute deployed, the pilot is fine,” said Bob Stangarone, vice president of Cessna Corporate Communications. “He went to the hospital just as a precaution as with our typical policy.”

Cessna’s newest two-seat light sport trainer comes with an A-frame parachute, designed to help the plane land in an emergency. Investigators know it worked, but are releasing few other details about the crash.

“The investigation here really has to take its course and then we will be able to draw any conclusions,” Stangarone said.

As investigators try to determine what caused the plane to go down, it is known this is the second Skycatcher to crash in the last six months.

Back in September, a Skycatcher crashed near Douglass, KS during testing. At that point, the plane had been on more than 100 flights.

“It’s very rigorous testing,” Stangarone said. “We test to extremes. These are conditions that would not be seen in normal operations.”

But now, with this second crash, it’s unclear if the Skycatcher will still be delivered on schedule.

“The plan is for it to enter service this year, obviously we’ll have to take another look at that,” Stangarone said.

The plane will be taken back to headquarters for further testing. FAA officials are also investigating the crash.

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CESSNA SLOWS COLUMBUS PROGRAM, TO END ENCORE PRODUCTION

Economic woes continue to mount at Cessna, which is slipping production schedules on its existing business jet lines and planning to slow development of the Citation Columbus. Cessna Chairman President and CEO Jack Pelton wrote a letter to employees this month, saying, “We are planning targeted furloughs in production on the Citation CJ, Sovereign and Citation X lines.” The Wichita plane-maker has not released details on additional layoffs, but
said it was “closely following the global economic environment to make sure we are matching our production to demand.” The company, which at one time employed nearly 16,000, has eliminated 4,600 jobs since December.
Pelton warned that the sagging economy is “also impacting the future.” The company decided to extend the development of its new Citation Columbus business jet by at least six months, he said, but added the decision should not result in additional layoffs.
Cessna executives also decided to end production of the Encore+ business jet this summer. The Encore+ is the last of the Model 560 aircraft line that began with the Citation V in 1989. Cessna had delivered 713 Model 560s by the end of 2008. The “Encore” variants entered the market in 2000, and Cessna has since delivered 200 Encore and Encore+ models.
Pelton said the Citation CJ4 will fill the market niche of the Encore+. “The CJ4 fulfills essentially the same mission but will offer enhanced performance and state-of-the-art avionics and cabin information technology,” he said. “We continue toward completion of flight-testing for the Citation CJ4 and are planning to begin deliveries, as originally promised, early next year.”