Today, Textron (NYSE: TXT) announced that Cessna Aircraft Company, a
Textron Inc. company, and Aviation Industry Corporation of China (AVIC)
are signing two strategic agreements to jointly develop general and
business aviation in the People's Republic of China. The agreements
together pave the way for a range of business jets, utility
single-engine turboprops and single-engine piston aircraft to be
manufactured and certified in China.
The first agreement between AVIC and Cessna/Textron is an overarching
agreement between these companies that is intended to lead to the
formation of joint ventures that will pursue various activities
pertaining to the development of general aviation businesses in China,
including the establishment of an aircraft service network in China.
The second is a specific cooperation agreement between Cessna Aircraft
Company, AVIC Aviation Techniques Co., LTD (AAT), and the Chengdu
government to enter into negotiations to establish a joint venture to
produce mid-size Cessna business jet models, as well as a potential new
product for the business jet market.
Scott Ernest, Cessna president and CEO, says: "We are extremely pleased
to be entering into these strategic agreements. China's market potential
is tremendous and therefore represents an exciting opportunity for
Cessna. China recognizes general aviation offers the foundation to
support its national air transportation needs for the future. These
agreements will help take the industry to the next level."
Within the next year, Cessna and AVIC are seeking to launch joint
venture companies which will focus on implementing the initial phase of
the strategic agreements.
Cessna is the world's leading general aviation company. Since its
inception in 1927, Cessna has designed, produced and delivered more than
192,500 airplanes around the globe. This includes more than 6,100
Citation business jets, making it the largest fleet of business jets in
the world. Today, Cessna has two principal lines of business: aircraft
sales and aftermarket services. Aircraft sales include Citation business
jets, Caravan single-engine utility turboprops, single-engine piston
aircraft and lift solutions by CitationAir. Aftermarket services include
parts, maintenance, inspection and repair services. In 2010, Cessna
delivered 535 aircraft, including 179 Citation business jets, and
reported revenues of $2.6 billion. More information about Cessna
Aircraft Company is available at cessna.com.
Textron Inc. is a multi-industry company that leverages its global
network of aircraft, defense, industrial and finance businesses to
provide customers with innovative solutions and services. Textron is
known around the world for its powerful brands such as Bell Helicopter,
Cessna Aircraft Company, Jacobsen, Kautex, Lycoming, E-Z-GO, Greenlee,
and Textron Systems. More information is available at textron.com.
Certain statements in this press release are forward-looking statements
which may project revenues or describe strategies, goals, outlook or
other non-historical matters; these statements speak only as of the date
on which they are made, and we undertake no obligation to update or
revise any forward-looking statements. These statements are subject to
known and unknown risks, uncertainties, and other factors that may cause
our actual results to differ materially from those expressed or implied
by such forward-looking statements, including, but not limited to, the
risk that the parties will not reach agreement on the specific terms of
new joint ventures or that the timing of establishing the new business
ventures is delayed; risks and uncertainties related to the launching of
new products or programs which could result in unanticipated delays or
expenses; performance issues with key suppliers, subcontractors or
business partners; changes in worldwide economic and political
conditions that impact demand for our products, interest rates and
foreign exchange rates; risks and uncertainties related to establishing
new facilities; and risks related to doing business internationally.
Doug Wilburne, 401-457-2288