Officials at parent company Textron say Cessna continues to see stabilization in the business jet market, noting Cessna management has observed that availability of used aircraft is declining, customer utilization of the existing fleet has stabilized, availability of financing is improving and customer inquiries for new orders are beginning to increase.
At the same time, Cessna has continued efforts with customers to clarify the status of long-term orders remaining in backlog, Textron officials note. The company has been in discussions with a large customer concerning the cancellation of about $1.1 billion of jets it had on order with Cessna. None of these aircraft were planned for delivery through 2012.
The company expects that cancellations in the fourth quarter will reduce backlog by approximately $1.7 billion. These cancellations are not expected to have a material impact on planned deliveries through 2012.
The company will provide its outlook for 2010 business jet deliveries when it releases earnings on Jan. 28.