Kansas.com: Aviation

More job cuts? No certainties at Hawker

MOLLY MCMILLIN — Sat, 22 Nov 2008 01:38 CST

With all the economic uncertainty, Hawker Beechcraft's chairman and chief executive Jim Schuster said the company is taking it quarter by quarter.

Hawker Beechcraft cut about 490 jobs earlier this month as it adjusts production because of the worldwide economic decline.

Schuster can't say whether there will be more to come.

"No one, whether they're the president of a country or a president of a company... feels a sense of certainty about what's going to happen," said Schuster, who announced Thursday that he will retire. He said he'll stay with the company until his replacement is found. "We're managing the company right now almost in phases."

Hawker Beechcraft will continue to assess the market after each financial quarter, he said. If there's a sense the economy is picking up, "we'll hold our ground."

Boeing layoffs may go past 2009

Sat, 22 Nov 2008 01:38 CST

Layoffs at Boeing might extend beyond Wichita next year, as the company looks to cut costs in response to difficult market conditions and a slowing global economy, a company executive said.

In an internal memo sent to employees Thursday, Rick Stephens, senior vice president for human resources, was quoted as saying the aerospace company expects its number of employees to decline in 2009 after several years of growth.

That decline could exceed Boeing's average annual attrition rate of 4 to 5 percent, though the Chicago-based company has not made a firm estimate. It would include a mix of attrition, hiring freezes and layoffs, he said, according to the memo.

The memo was released a day after Boeing announced plans to lay off 800 of its roughly 3,000 workers at its Wichita plant. The cuts are due to the delay of a U.S. Air Force tanker replacement program and the end of other work projects, the company said.

The first 60-day notices went out Friday; Jan. 23 will be the last day for 70 employees.

Hawker CEO Schuster announces retirement

MOLLY MCMILLIN — Fri, 21 Nov 2008 01:39 CST

The 55-year-old will stay till new CEO is chosen

Hawker Beechcraft chairman and chief executive Jim Schuster said Thursday that he will retire from the position he's held for nearly eight years.

Schuster, 55, will continue to lead the company until a successor is named "regardless of how much time it takes," he said.

"My heart's in the game, my head's in the game, and I'm excited to see us through the fourth quarter and next year if necessary," he said.

But he said retirement is something he's been thinking about for a long time. He wants to take a break and do "all the fun things I've put off with my family" before deciding what he'll do next.

Boeing to cut 800 Wichita jobs in 2009

MOLLY MCMILLIN — Thu, 20 Nov 2008 06:05 CST

Wichita's aviation industry took another hit Wednesday when Boeing said it would cut 800 jobs -- about a quarter of its Wichita work force -- in the first half of next year.

A handful of layoff notices will be issued Friday. The remainder will be distributed early in 2009.

Wednesday's announcement was the third major layoff by a Wichita aviation company this month.

Hawker Beechcraft announced Nov. 3 that it was cutting about 490 jobs this month. Less than 10 days later, Cessna Aircraft said it would lay off 500 employees in early January.

Unlike Hawker Beechcraft and Cessna, Boeing officials said its cuts aren't related to the current economic downturn. The layoffs are due to work winding down on some military programs and a delay in a program to replace aging U.S. Air Force refueling tankers.

Boeing, SPEEA reach tentative contract

Sat, 15 Nov 2008 01:40 CST

Boeing and the Society of Professional Engineering Employees in Aerospace have reached a tentative agreement on four-year contracts covering Seattle-area engineers and technical workers.

An agreement was reached early Friday. Details were not released Friday afternoon.

Union negotiators are recommending approval by the membership. Current contracts expire Dec. 1.

On Monday, SPEEA and Boeing open talks for Wichita's engineering group.

SPEEA represents more than 700 Wichita engineers at Boeing.

Boeing engineers call for vote to authorize strike

TIM KLASS — Fri, 14 Nov 2008 01:39 CST

Contract talks covering about 21,000 Boeing Co. white-collar workers appeared to stall Thursday, and their union council called for members to vote on whether to authorize the leadership to call a strike.

The Northwest Council of the Society of Professional Engineering Employees in Aerospace left it to negotiators to decide the time and manner of voting, union spokesman Bill Dugovich said.

It was believed to be the first time the union has called a strike authorization vote without simultaneously voting on a contract offer.

A Boeing spokeswoman did not immediately return a call for comment.

Both sides have been working to avoid a second strike at Boeing following an eight-week Machinists union walkout that ended Nov. 2.

General aviation deliveries up 3% in third quarter over 2007

MOLLY MCMILLIN — Fri, 14 Nov 2008 05:51 CST

Third-quarter shipments of general aviation aircraft were up 3 percent in the quarter, according to a report released Thursday.

The General Aviation Manufacturers Association, a Washington trade group, said planemakers delivered 1,058 aircraft in the third quarter, up from 1,030 in 2007. Billings for the quarter totaled $6.02 billion, up from $5.36 billion.

Together, Cessna, Hawker Beechcraft and Bombardier Learjet shipped 469 Wichita-produced planes -- 44 percent of general aircraft shipped worldwide.

Despite the positive numbers, the industry is experiencing difficulties because of the weakness in the global economy, GAMA president and chief executive Pete Bunce said in a statement.

"Reacting to the lead and lag nature of this economic slowdown, several companies have announced layoffs and are working very aggressively to retain orders and encourage new ones," Bunce said.

Cessna to lay off 500; company blames economy's rapid slide

MOLLY MCMILLIN AND DAN VOORHIS — Thu, 13 Nov 2008 06:27 CST

Cessna Aircraft will cut about 500 jobs in Wichita, company officials said Wednesday. Laid-off workers will be given 60-day notices in the next few weeks, according to an e-mail to employees from Jim Walters, Cessna's senior vice president for human resources.

"These actions are regrettable but necessary to ensure our long-term stability and success," Walters said.

The announcement comes just six months after state, city and county officials approved an incentives package worth tens of millions of dollars so Cessna would build its Citation Columbus plant in Wichita.

Company spokesman Doug Oliver said the plant, which had its groundbreaking last month, is an important part of Cessna's future.

When the plant begins production in 2014, he said, there will be 1,000 people working there, as promised.

Boeing, Spirit fixing faulty parts

MOLLY MCMILLIN — Thu, 13 Nov 2008 09:46 CST

Spirit AeroSystems and Boeing are inspecting and replacing thousands and thousands of defective nutplates that have been installed on jetliners since August 2007.

The tiny parts that help hold jetliners together have been installed on Boeing 737 fuselages and Boeing 747, 767 and 777 nose sections at Spirit, said Boeing spokeswoman Vicki Ray. They also have been used on pylon sections.

Spirit employees discovered the problem in the past two months, Spirit spokesman Ken Evans said.

Ray said she does not know how many planes have been affected. The company is coming up with a plan to deal with planes already in service.

"There's no immediate flight safety issue," she said.

Task force's report not so helpful for air travelers

JOAN LOWY — Wed, 12 Nov 2008 01:38 CST

A federal task force that spent nearly a year wrestling with ways to assist people delayed for hours aboard planes parked on tarmacs has finalized its recommendations -- none of which requires airlines and airports to do anything.

The tarmac task force, as it is informally known, is expected to vote today on guidelines for airlines and airports on how to craft their own contingency plans for dealing with lengthy tarmac delays.

Among the problems: The task force was unable to agree on whether "lengthy" is one hour, two hours or 10 hours.

Kate Hanni, a task force member and passenger rights advocate, said Tuesday that there is nothing in the draft document that requires airlines or airports to provide additional services for passengers stranded aboard airplanes going nowhere.

The report "is a set of best practices, but there's nothing enforceable where a passenger can say, 'I won't be held up for more than three hours or five hours or eight hours, or without a glass of water or a sandwich,' " said Hanni, founder of the Coalition for an Airline Passengers' Bill of Rights.

Economy has Hawker 'spooked'

MOLLY MCMILLIN — Wed, 12 Nov 2008 01:37 CST

Hawker Beechcraft is taking a conservative approach to its business until it better understands what is happening with the economy, Jim Schuster said Tuesday.

"There's still a lot of unknowns ahead of us," Schuster, Hawker Beechcraft chairman and chief executive, said.

"This thing's just got us all spooked."

Schuster was speaking during a conference call with analysts that followed last week's release of Hawker Beechcraft's third-quarter financial results.

The company reported that it took a $21.2 million net loss during the quarter, compared with a net gain of $21.3 million in 2007. Operating income for the nine months totaled $24 million.

Holiday air travel could be a game of chance

MOLLY MCMILLIN — Tue, 11 Nov 2008 05:54 CST

This holiday travel season could be frustrating for airline passengers, the authors of a midyear airline quality rating report said Monday.

Airlines have cut capacity, and that means "there's very little margin of error," said Wichita State University marketing professor Dean Headley, who co-authored the report.

If you're flying during the busiest days and your flight is canceled because of weather or there is an equipment issue, "even if you're in a major hub, you could be stranded two or three days," Headley said.

Planes are expected to be 85 percent or 90 percent full this holiday season, so it will be difficult to redirect passengers onto other flights, he said.

"Traveling right now has the potential for being overly... frustrating," Headley said.

Military trainer talks down pilot blinded by a stroke

JENNIFER QUINN — Sat, 08 Nov 2008 01:38 CST

A British pilot who was suddenly blinded by a stroke during a solo flight was talked safely down by a military pilot, the Royal Air Force said Friday.

Jim O'Neill asked for help after he was went blind 40 minutes into a flight from Scotland to southeastern England last week. The BBC reported that O'Neill, flying a small Cessna aircraft, lost his sight 5,500 feet in the air.

"It was terrifying," O'Neill said. "Suddenly, I couldn't see the dials in front of me."

The air force said in a news release that O'Neill initially believed he'd been "dazzled" by bright sunlight, and made an emergency call for help. He then realized that something more serious was happening, and said, "I want to land, ASAP."

RAF Wing Commander Paul Gerrard was just finishing a training flight nearby and was asked to help the stricken pilot.

Exacting in its growth

MOLLY MCMILLIN — Sat, 08 Nov 2008 01:38 CST

Family-owned aerospace firm marks 30 years

About every week, brothers Ben and Casey Voegeli -- who with their parents operate Exacta Aerospace in Wichita -- get letters inquiring whether they'd like to sell the business.

"We would be pretty attractive to somebody," Ben Voegeli said.

But they're not interested.

"We're proud we're still locally owned," he said of the company that's celebrating 30 years in business this year.

Boeing strike limits October plane deliveries to just five

DANIEL LOVERING — Fri, 07 Nov 2008 06:08 CST

Boeing Co. delivered just five jetliners in October amid a strike by union workers that forced the aerospace firm to close its commercial aircraft factories temporarily.

The company, which posted deliveries for the month on its Web site Thursday, earlier reported 12 commercial airplane deliveries in September and 36 per month in August and July.

The eight-week strike by 27,000 workers in Wichita, Washington and Oregon ended after the Machinists union ratified a new four-year contract with the company Saturday.

The workers -- among them electricians, painters and mechanics -- began returning to Boeing's plants Sunday night, and the entire union work force is due to resume work by Monday.

The walkout cost the company an estimated $100 million a day in deferred revenue. Boeing's commercial aircraft plants had been operating at full capacity amid a record backlog of orders before the strike began Sept. 6.

Hawker Beechcraft begins its job reductions

MOLLY MCMILLIN — Fri, 07 Nov 2008 06:15 CST

Layoff notices went out at Hawker Beechcraft on Thursday, telling employees that today will be their last day, a union official said.

Hawker Beechcraft informed employees Monday that it planned to cut 5 percent of its work force -- about 490 jobs -- as it reduced production because of a worldwide economic slowdown. The company employs about 9,780 worldwide, including about 7,700 in Wichita.

Machinists union official Rita Rogers said the union was notified Thursday that layoff notices were issued to 409 hourly workers in the bargaining group.

Another 38 who had originally been scheduled for layoff will be loaned to other departments, she said.

And 16 hourly jobs in Salina are scheduled to be cut after Thanksgiving, Rogers said.

'The bubble has burst,' aviation expert says

MOLLY MCMILLIN AND DAN VOORHIS — Thu, 06 Nov 2008 06:38 CST

This week's news that Hawker Beechcraft and Cessna Aircraft will cut jobs is not surprising, analysts say.

"You cut costs in advance of downturns, and we're definitely heading toward a market downturn," said Teal Group analyst Richard Aboulafia.

Only a few weeks ago, planemakers pointed to record order backlogs and high volumes of international orders and said they were well positioned to weather an economic downturn.

"The bubble has burst," said Cowen & Co. analyst Cai von Rumohr.

The credit market that's seizing up will translate into a large drop in demand, von Rumohr said. The degree and speed of market disruption in the past several weeks is unprecedented, experts say.

Hawker posts loss in 3rd quarter

MOLLY MCMILLIN — Wed, 05 Nov 2008 02:40 CST

Hawker Beechcraft posted lower sales and a net loss during the third quarter, the result of a 25-day strike and a large charge associated with its new Hawker 4000 business jet.

The results were released Tuesday, a day after Hawker Beechcraft told employees it plans to cut 5 percent of its work force as it lowers aircraft production rates due to a weaker global economy and an uncertain overall economic outlook.

The company also reported fewer deliveries and said it is lowering production because it expects lower demand for new aircraft, spares and maintenance services, it said. It's also delaying delivery schedules with suppliers.

Hawker Beechcraft is working to reduce aircraft production by 4 percent this year and 18 percent next year over previous projections, it told suppliers last week.

As a result, one Wichita supplier has already reduced its work force.

Boeing delays first 787 flight

DANIEL LOVERING — Wed, 05 Nov 2008 02:39 CST

Boeing Co. said Tuesday that the first flight of its long-delayed 787 jetliner has been postponed until next year due to an eight-week strike by union workers.

The Chicago-based airplane maker had scheduled the inaugural flight of the next-generation passenger jet for the fourth quarter of this year.

But company spokesman Jim Proulx said the strike pushed back the test flight to an unspecified time next year.

The walkout ended Saturday after the Machinists union, representing 27,000 workers, including about 750 in Wichita, ratified a four-year contract with the company. Workers began returning to Boeing's commercial aircraft plants Sunday night.

"Given the duration of the... work stoppage, first flight of the 787 will not be accomplished in the fourth quarter 2008," Proulx said. "The time frame for first flight has not been established and will be based on the strike recovery assessment."

Cessna to cut output, work force

MOLLY MCMILLIN — Wed, 05 Nov 2008 02:40 CST

Cessna Aircraft plans to reduce its work force as it adjusts production schedules from a softening global economy, the company said Tuesday.

Orders are slowing and the company has had some deferrals and cancellations, company officials said.

Cessna chairman and chief executive Jack Pelton sent a message to employees Tuesday afternoon informing them of the changes.

"We are assessing the full impact of these changes and the number of employees affected," Pelton said in the message. "The timing and scope of the reductions will be communicated within the next few days."

It's too soon to say whether there will be layoffs, Cessna spokesman Doug Oliver said.