Says Company Is Analyzing Impact Of Economic Downturn

Going against current, gloomy economic trends, on Wednesday Cessna Aircraft broke ground on a $200 million facility in Wichita, KS to produce the company's upcoming ultra-lux Citation Columbus business jet.

The Wichita Business Journal reports Cessna CEO Jack Pelton believes the sizable investment will pay off for the planemaker in the future, when economic trends will have (hopefully) stabilized.

"It's really starting to create the next legacy for Cessna," Pelton said at the ground-breaking ceremony, which was also attended by Kansas Governor Kathleen Sebelius.

Introduced as the Large Cabin Concept in late 2006 -- and formally unveiled in February -- the Citation Columbus will be Cessna's largest, fastest, and longest-range business aircraft. Slated to enter service in 2014, the jet also carries the largest price tag by far for a Cessna airplane... $27 million, in 2008 dollars.

Pelton added Cessna isn't immune to the economic slump, which has resulted in a sales downturn and layoffs at several competing planemakers. He says Cessna is currently gauging what impact the economic crisis may have on its future business plans.

"The economy right now is in turmoil," Pelton added. "The good news is we have a very large backlog."

Despite that turmoil, Pelton adds he believes his company is better-positioned now to handle the downturn, than it was eight years ago -- when a 2000-2003 slump "devasted Cessna," and led to cuts in jobs and production.

But Pelton notes there was good news, too... as Cessna continued work on a number of other programs throughout that crisis. "When the economy turned, we were in a leadership position," Pelton said.

Cessna is Wichita's largest employer, with some 12,000 workers. The company has committed to bringing 1,000 new jobs to the Wichita area to assemble the Columbus.

FMI: www.cessna.com