WICHITA, Kan. (Nov. 14, 2008) – To satisfy demand for new products like the Hawker 4000 and Hawker 750, Hawker Beechcraft is proud to announce its newest international sales office in Vienna, Austria. Located on the prestigious Ringstraße in the heart of Vienna’s business and tourism district, the new sales office will provide a permanent location for the Hawker Beechcraft sales team to serve its European customers. The Vienna office will be overseen by Byron Severson, regional sales director of Hawker aircraft, Central and Eastern Europe, who has been in Vienna since January.
“Demand for our aircraft in Europe is growing, and the new sales office in Vienna will not only help meet the customer demand but also expand our presence in the region,” said Sean McGeough, vice president, International Sales. “For years, Vienna has been the hub of Eastern European commerce, and positioning our new sales office in this niche location allows us to further augment Hawker Beechcraft’s international sales team growth.”
In recent years the company’s overall international activity has increased significantly.
“With nearly 65 percent of our new commercial aircraft bookings coming from the international region, we have reorganized and expanded our sales team over the past year to respond to the growing demands for business aircraft,” said Brad Hatt, president, Commercial Sales. “We’re excited about the new location in Vienna as well as the experience Byron will bring to the progress taking place in Eastern Europe.”
Hawker Beechcraft Corporation is a world-leading manufacturer of business, special-mission and trainer aircraft – designing, marketing and supporting aviation products and services for businesses, governments and individuals worldwide. The company’s headquarters and major facilities are located in Wichita, Kan., with operations in Salina, Kan.; Little Rock, Ark.; Chester, England, U.K.; and Chihuahua, Mexico. The company leads the industry with the largest number of factory-owned service centers and a global network of more than 100 factory-owned and authorized service centers. For more information, visit www.hawkerbeechcraft.com.
Tuesday, November 18, 2008
Hawker Beechcraft Acquisition Company, LLC Reports Third Quarter 2008 Results
WICHITA, Kan. (Nov. 4, 2008) – Hawker Beechcraft Acquisition Company, LLC (HBAC) reported lower sales and operating income during the three months ending Sept. 28, 2008, as compared to the same period in 2007 primarily resulting from a four-week strike in August by the International Association of Machinists (IAM).
Net sales for the three months ending Sept. 28, 2008, were $783.3 million, a decrease of $87.7 million compared to the third quarter of 2007. Aircraft deliveries were significantly impacted by the strike. During the quarter, the Company delivered 86 business and general aviation aircraft consisting of 34 jet, 33 turboprop and 19 piston aircraft, as compared to the 106 aircraft during the same period in 2007.
During the three months ending Sept. 28, 2008, the Company recorded operating income of $15.3 million, compared to an operating income of $62.1 million during the third quarter of 2007. The strike resulted in lower business and general aviation aircraft deliveries and reduced production in the Company’s trainer segment, impacting overall operating income. Also included in the third quarter 2008 results was a $25.3 million charge associated with increased costs to conform specific early-production Hawker 4000 units to the final type design and to establish standard production processes.
Operating cash flow consumed during the nine months ending Sept. 28, 2008, was $159.7 million. This is primarily due to an increase in material receipts to support an increase in production rates coupled with reduced aircraft deliveries during the period as a result of the strike.
Net bookings for the three months ending Sept. 28, 2008, totaled $1.2 billion, resulting in a record backlog of $7.9 billion at the end of the third quarter of 2008.
“This was a difficult quarter as the reduced aircraft deliveries impacted our financial results significantly,” said Jim Schuster, chairman and CEO of Hawker Beechcraft Corporation. “We are also closely monitoring global economic conditions to assess the impact on our industry. Going forward, we will be proactive in responding to the evolving economic realities while continuing to provide the industry’s best products, services and support.”
In response to the weakness in the global economy and overall economic outlook, HBC informed employees on Oct. 31, 2008, that reductions in workforce would be required as adjustments are made to aircraft production rates. The change in aircraft production reflects anticipation of reduced demand for new aircraft, spares and maintenance services. The financial impact resulting from the planned reductions is not anticipated to be significant.
Financial and other information for the three months ending Sept. 28, 2008, is available on the Company’s Web site at www.hawkerbeechcraft.com. An earnings call will be held on Tuesday, Nov. 11, 2008, at 9 a.m. CDT.
Earnings Conference Call:
HBAC’s earnings results conference call for the three months ending Sept. 28, 2008, will be held Tuesday, Nov. 11, 2008, at 9 a.m. CDT. To attend, register at https://cossprereg.btci.com/prereg/key.process?key=PUJRU46YP.
Once you register, you will be provided with dial-in numbers and pass codes needed to join the conference call. A recording of the earnings call will be posted to the Company’s Web site on the afternoon of Nov. 11, 2008, and will be available for 45 days.
Hawker Beechcraft Corporation is a world-leading manufacturer of business, special-mission and trainer aircraft – designing, marketing and supporting aviation products and services for businesses, governments and individuals worldwide. The company’s headquarters and major facilities are located in Wichita, Kan., with operations in Salina, Kan.; Little Rock, Ark.; Chester, England, U.K.; and Chihuahua, Mexico. The company leads the industry with the largest number of factory-owned service centers and a global network of more than 100 factory-owned and authorized service centers. For more information, visit www.hawkerbeechcraft.com.
Net sales for the three months ending Sept. 28, 2008, were $783.3 million, a decrease of $87.7 million compared to the third quarter of 2007. Aircraft deliveries were significantly impacted by the strike. During the quarter, the Company delivered 86 business and general aviation aircraft consisting of 34 jet, 33 turboprop and 19 piston aircraft, as compared to the 106 aircraft during the same period in 2007.
During the three months ending Sept. 28, 2008, the Company recorded operating income of $15.3 million, compared to an operating income of $62.1 million during the third quarter of 2007. The strike resulted in lower business and general aviation aircraft deliveries and reduced production in the Company’s trainer segment, impacting overall operating income. Also included in the third quarter 2008 results was a $25.3 million charge associated with increased costs to conform specific early-production Hawker 4000 units to the final type design and to establish standard production processes.
Operating cash flow consumed during the nine months ending Sept. 28, 2008, was $159.7 million. This is primarily due to an increase in material receipts to support an increase in production rates coupled with reduced aircraft deliveries during the period as a result of the strike.
Net bookings for the three months ending Sept. 28, 2008, totaled $1.2 billion, resulting in a record backlog of $7.9 billion at the end of the third quarter of 2008.
“This was a difficult quarter as the reduced aircraft deliveries impacted our financial results significantly,” said Jim Schuster, chairman and CEO of Hawker Beechcraft Corporation. “We are also closely monitoring global economic conditions to assess the impact on our industry. Going forward, we will be proactive in responding to the evolving economic realities while continuing to provide the industry’s best products, services and support.”
In response to the weakness in the global economy and overall economic outlook, HBC informed employees on Oct. 31, 2008, that reductions in workforce would be required as adjustments are made to aircraft production rates. The change in aircraft production reflects anticipation of reduced demand for new aircraft, spares and maintenance services. The financial impact resulting from the planned reductions is not anticipated to be significant.
Financial and other information for the three months ending Sept. 28, 2008, is available on the Company’s Web site at www.hawkerbeechcraft.com. An earnings call will be held on Tuesday, Nov. 11, 2008, at 9 a.m. CDT.
Earnings Conference Call:
HBAC’s earnings results conference call for the three months ending Sept. 28, 2008, will be held Tuesday, Nov. 11, 2008, at 9 a.m. CDT. To attend, register at https://cossprereg.btci.com/prereg/key.process?key=PUJRU46YP.
Once you register, you will be provided with dial-in numbers and pass codes needed to join the conference call. A recording of the earnings call will be posted to the Company’s Web site on the afternoon of Nov. 11, 2008, and will be available for 45 days.
Hawker Beechcraft Corporation is a world-leading manufacturer of business, special-mission and trainer aircraft – designing, marketing and supporting aviation products and services for businesses, governments and individuals worldwide. The company’s headquarters and major facilities are located in Wichita, Kan., with operations in Salina, Kan.; Little Rock, Ark.; Chester, England, U.K.; and Chihuahua, Mexico. The company leads the industry with the largest number of factory-owned service centers and a global network of more than 100 factory-owned and authorized service centers. For more information, visit www.hawkerbeechcraft.com.
Hawker Beechcraft Corporation to Display Popular Business Aircraft at MEBA
DUBAI, U.A.E. (Nov. 14, 2008) – As Hawker Beechcraft Corporation (HBC) continues to experience growing sales in the Middle East, the company announces it will display its popular aircraft at this year’s Middle East Business Association (MEBA) Airport Expo.
“The Middle East is one of the world’s fastest-growing regions for business aviation and very important for Hawker Beechcraft in terms of business turbine aircraft sales,” said Sean McGeough, HBC vice president, International Sales. “Our aircraft are extremely well received in the region and our customers are benefiting from the conveniently located Hawker Beechcraft sales office in Dubai. We anticipate a busy show at MEBA and look forward to showing our outstanding aircraft.”
A number of factors contribute to general aviation’s growth in the region, including widespread recognition and acceptance of business aircraft as business tools, as well as the emergence of wealth creation through entrepreneurship. Dubai and Bahrain are positioned as major financial hubs in the region, making travel a necessity in today’s world. Business leaders and executives are recognizing the productivity benefits, flexibility and convenience to be gained through private aviation. Hawker Beechcraft manufactures one of the broadest aircraft lineups in the industry, offering aircraft suited for multiple missions including intra-regional and intercontinental, business or leisure travel.
“Our aircraft allow people to travel more efficiently for business or leisure purposes, offering exceptional payload capability, cabin size, range and reliability,” said Ted Farid, HBC vice president, New Business Development. “Our Hawker 400XP for instance is excellent for conducting business within the region such as Bahrain to Dubai, whereas our King Air 350 provides outstanding operating costs and flexibility in the Middle East and Gulf with shorter runways and unimproved landing strips.”
Hawker Beechcraft plans to display an impressive exhibit at MEBA 2008. The company will showcase five of its aircraft, which include:
• Hawker 4000 – The flagship of the Hawker line, the Hawker 4000 is the ideal aircraft for European travel from the Middle East. The composite-fuselage Hawker 4000 is the most advanced super-midsize business jet in the world. It truly sets the standard for quality, performance and value in the super-midsize business jet class of aircraft.
• Hawker 900XP – From the world’s best selling midsized business jet lineage (the Hawker 800 series), the Hawker 900XP offers Middle East businesses and individuals a one-stop solution to Europe. The Hawker 900XP has combined new Honeywell engines with enhanced winglets and a large cabin for increased performance, range, efficiency, comfort and unprecedented value.
• Hawker 400XP – The Hawker 400XP is the ultimate aircraft for traveling within the region, such as Bahrain to Dubai. With the largest cabin of any comparable aircraft, this aircraft is the preferred light jet for the fractional market and corporations worldwide. The Hawker 400XP is the fastest light business jet of its class and the world’s best light jet value.
• Beechcraft Premier IA – Truly the most advanced technology light jet, the Premier IA offers customers an industry-leading combination of speed, cabin size and efficiency with a new interior, upgraded avionics and five-year warranty.
• Beechcraft King Air 350 – The King Air series is the most popular business turboprop lineup in the world. The flagship Beechcraft King Air 350 model offers the utmost in versatility and capability, and its fuel-efficiencies and operating costs offer an extremely practical aircraft for the region. This aircraft can operate on runways as short as 3,300 feet with exceptional short-field performance. It features a class leading heated, pressurized, and in-flight-accessible baggage area – the largest in its class. The King Air 350 also lends itself to a wide variety of special mission applications, such as aerial survey, air ambulance, VIP transport, ground surveillance and maritime patrol capabilities.
Hawker Beechcraft Corporation is a world-leading manufacturer of business, special-mission and trainer aircraft – designing, marketing and supporting aviation products and services for businesses, governments and individuals worldwide. The company’s headquarters and major facilities are located in Wichita, Kan., with operations in Salina, Kan.; Little Rock, Ark.; Chester, England, U.K.; and Chihuahua, Mexico. The company leads the industry with the largest number of factory-owned service centers and a global network of more than 100 factory-owned and authorized service centers. For more information, visit www.hawkerbeechcraft.com.
“The Middle East is one of the world’s fastest-growing regions for business aviation and very important for Hawker Beechcraft in terms of business turbine aircraft sales,” said Sean McGeough, HBC vice president, International Sales. “Our aircraft are extremely well received in the region and our customers are benefiting from the conveniently located Hawker Beechcraft sales office in Dubai. We anticipate a busy show at MEBA and look forward to showing our outstanding aircraft.”
A number of factors contribute to general aviation’s growth in the region, including widespread recognition and acceptance of business aircraft as business tools, as well as the emergence of wealth creation through entrepreneurship. Dubai and Bahrain are positioned as major financial hubs in the region, making travel a necessity in today’s world. Business leaders and executives are recognizing the productivity benefits, flexibility and convenience to be gained through private aviation. Hawker Beechcraft manufactures one of the broadest aircraft lineups in the industry, offering aircraft suited for multiple missions including intra-regional and intercontinental, business or leisure travel.
“Our aircraft allow people to travel more efficiently for business or leisure purposes, offering exceptional payload capability, cabin size, range and reliability,” said Ted Farid, HBC vice president, New Business Development. “Our Hawker 400XP for instance is excellent for conducting business within the region such as Bahrain to Dubai, whereas our King Air 350 provides outstanding operating costs and flexibility in the Middle East and Gulf with shorter runways and unimproved landing strips.”
Hawker Beechcraft plans to display an impressive exhibit at MEBA 2008. The company will showcase five of its aircraft, which include:
• Hawker 4000 – The flagship of the Hawker line, the Hawker 4000 is the ideal aircraft for European travel from the Middle East. The composite-fuselage Hawker 4000 is the most advanced super-midsize business jet in the world. It truly sets the standard for quality, performance and value in the super-midsize business jet class of aircraft.
• Hawker 900XP – From the world’s best selling midsized business jet lineage (the Hawker 800 series), the Hawker 900XP offers Middle East businesses and individuals a one-stop solution to Europe. The Hawker 900XP has combined new Honeywell engines with enhanced winglets and a large cabin for increased performance, range, efficiency, comfort and unprecedented value.
• Hawker 400XP – The Hawker 400XP is the ultimate aircraft for traveling within the region, such as Bahrain to Dubai. With the largest cabin of any comparable aircraft, this aircraft is the preferred light jet for the fractional market and corporations worldwide. The Hawker 400XP is the fastest light business jet of its class and the world’s best light jet value.
• Beechcraft Premier IA – Truly the most advanced technology light jet, the Premier IA offers customers an industry-leading combination of speed, cabin size and efficiency with a new interior, upgraded avionics and five-year warranty.
• Beechcraft King Air 350 – The King Air series is the most popular business turboprop lineup in the world. The flagship Beechcraft King Air 350 model offers the utmost in versatility and capability, and its fuel-efficiencies and operating costs offer an extremely practical aircraft for the region. This aircraft can operate on runways as short as 3,300 feet with exceptional short-field performance. It features a class leading heated, pressurized, and in-flight-accessible baggage area – the largest in its class. The King Air 350 also lends itself to a wide variety of special mission applications, such as aerial survey, air ambulance, VIP transport, ground surveillance and maritime patrol capabilities.
Hawker Beechcraft Corporation is a world-leading manufacturer of business, special-mission and trainer aircraft – designing, marketing and supporting aviation products and services for businesses, governments and individuals worldwide. The company’s headquarters and major facilities are located in Wichita, Kan., with operations in Salina, Kan.; Little Rock, Ark.; Chester, England, U.K.; and Chihuahua, Mexico. The company leads the industry with the largest number of factory-owned service centers and a global network of more than 100 factory-owned and authorized service centers. For more information, visit www.hawkerbeechcraft.com.
Friday, October 31, 2008
Forecast Predicts Eclipse 500 Shutdown
In one more piece of bad news for Eclipse Aviation, Forecast International today projected that production of the Eclipse 500 will soon end. The Connecticut-based market research firm believes that the aircraft´s manufacturer, Eclipse Aviation, will not attract new investment necessary to allow it to continue making the aircraft beyond the first quarter of 2009.
"Eclipse continues to produce aircraft at a low rate as it seeks to preserve cash," said Forecast International aircraft analyst Douglas Royce. "We have forecast production of 162 Eclipse 500s during 2008. We believe that the company will be able to push production out into early 2009 but will be forced to cease production within the first quarter of 2009."
The Connecticut-based company predicts only about a dozen of the VLJs will be produced in early 2009, and "even this forecast may prove too optimistic," said Royce.
According to the Forecast International interim report on the Eclipse program, which is scheduled for publication in December, Eclipse Aviation´s business plan depended on delivering a twin-jet aircraft at an extremely low price relative to its competition. This low price was dependent on use of a high-volume production strategy made possible by importing methods of production from the computer and automotive industries. However, the anticipated production ramp-up never occurred and the company has been unable to realize the economies of scale it needs to meet its price target.
Until May of 2008, the list price of the Eclipse 500 was $ 1.52 million. Thereafter, the aircraft´s price increased to $ 2.15 million, but Eclipse Aviation is required to deliver aircraft at the earlier, lower price to customers who executed an Aircraft Purchase Agreement and paid the required 60% total deposit. Every aircraft delivered under the old price is delivered at a loss, Forecast International notes. At the moment, the company does not have the financial resources to absorb these losses and survive. Eclipse declined to tell Forecast how many aircraft it has to deliver at the $ 1.52 million price.
"Eclipse continues to produce aircraft at a low rate as it seeks to preserve cash," said Forecast International aircraft analyst Douglas Royce. "We have forecast production of 162 Eclipse 500s during 2008. We believe that the company will be able to push production out into early 2009 but will be forced to cease production within the first quarter of 2009."
The Connecticut-based company predicts only about a dozen of the VLJs will be produced in early 2009, and "even this forecast may prove too optimistic," said Royce.
According to the Forecast International interim report on the Eclipse program, which is scheduled for publication in December, Eclipse Aviation´s business plan depended on delivering a twin-jet aircraft at an extremely low price relative to its competition. This low price was dependent on use of a high-volume production strategy made possible by importing methods of production from the computer and automotive industries. However, the anticipated production ramp-up never occurred and the company has been unable to realize the economies of scale it needs to meet its price target.
Until May of 2008, the list price of the Eclipse 500 was $ 1.52 million. Thereafter, the aircraft´s price increased to $ 2.15 million, but Eclipse Aviation is required to deliver aircraft at the earlier, lower price to customers who executed an Aircraft Purchase Agreement and paid the required 60% total deposit. Every aircraft delivered under the old price is delivered at a loss, Forecast International notes. At the moment, the company does not have the financial resources to absorb these losses and survive. Eclipse declined to tell Forecast how many aircraft it has to deliver at the $ 1.52 million price.
Embraer Participates in Airshow China 2008
Embraer participates in the seventh China International Aviation & Aerospace Exhibition, November 4-9, at Zhuhai Airport, in Guang Dong Province of the People’s Republic of China. The Company will promote its portfolio of both commercial and executive jets at stand 1B3/1. A press conference has been scheduled by Embraer for the first day of the event, November 4, at 1:00 p.m., in Room 2012 of the Media Center of Airshow China 2008. The market outlook for Chinese regional aviation market will be published at the conference.
“The Chinese air transportation market ranks second in the world, after the United States. Participating in events like this one gives the Company an exposure to the public and demonstrates its commitment to customers in the region,” said Guan Dongyuan, President of Embraer China.
“We firmly believe that the steady growth of China’s GDP will generate sizeable demand for both commercial and executive aviation, for which Embraer’s products have a longstanding history of commitment and are capable of delivering with excellence.”
Embraer’s commercial jet portfolio covers the 30 to 120-seat segment with two families of jets – the ERJ 145, seating from 37 to 50 passengers, and the E-Jets, with capacities ranging from 70 to 122 seats. Both families are already in operation in China, with six Chinese airlines successfully flying 38 aircraft, as of September 30, 2008. Firm orders come to 126 jets.
In the executive jets segment, Embraer’s portfolio includes the entry level Phenom 100, the light Phenom 300, the newly launched midlight Legacy 450 and midsize Legacy 500, the proven super midsize Legacy 600 and the luxurious ultra-large Lineage 1000 jets. Three Legacy 600s have been delivered to Chinese customers.
“The Chinese air transportation market ranks second in the world, after the United States. Participating in events like this one gives the Company an exposure to the public and demonstrates its commitment to customers in the region,” said Guan Dongyuan, President of Embraer China.
“We firmly believe that the steady growth of China’s GDP will generate sizeable demand for both commercial and executive aviation, for which Embraer’s products have a longstanding history of commitment and are capable of delivering with excellence.”
Embraer’s commercial jet portfolio covers the 30 to 120-seat segment with two families of jets – the ERJ 145, seating from 37 to 50 passengers, and the E-Jets, with capacities ranging from 70 to 122 seats. Both families are already in operation in China, with six Chinese airlines successfully flying 38 aircraft, as of September 30, 2008. Firm orders come to 126 jets.
In the executive jets segment, Embraer’s portfolio includes the entry level Phenom 100, the light Phenom 300, the newly launched midlight Legacy 450 and midsize Legacy 500, the proven super midsize Legacy 600 and the luxurious ultra-large Lineage 1000 jets. Three Legacy 600s have been delivered to Chinese customers.
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