Trevor Esling, Vice President International Sales, Cessna outlines the company’s prize aircraft, unique services and ambitious plans for the future in the corporate and general aviation sector

SP’s Aviation (SP’s): How do you perceive the corporate aviation market developments over the next five years?

Trevor Esling (Esling): Clearly the next 12 to 18 months will be slow. Most economic forecasters seem to predict that the US will be the first to bottom out and start the recovery at the end of 2009, early 2010. I would expect Europe, Japan and the rest of the world to follow six or so months thereafter. Looking five years down the track my feeling is that the economies around the world will be back into a full growth mode, albeit may be not with the same strength as we saw in the 2006/7 timescale. Overall I continue to feel that globalisation will be a very positive trend for the growth of business aviation. I believe that we will see an expanding base of aircraft outside the US as the international penetration of business jets continues. In the case of Cessna I see a 50/50 split, or maybe slighter greater, in favour of international versus US sales for the future. I think that is easily obtainable, particularly if expansion in the EU continues, and the newer markets in Asia really gain significant traction in that time.

SP’s: How would you rate the nations of the world in terms of market potential in coming times?

Esling: In common with my comments above I think we see the US as essentially a mature market with largely replacement sales at this point with a largely stable population of aircraft. I do see continued growth in the Canada, EU and Eastern Europe and Russia in happier economic times. The Middle East also offers growth potential. Brazil remains, and will continue to remain, one of our most significant export markets outside the EU.

In terms of Asia, we continue to believe that the market represents considerable promise for the future. The market will be dominated by India and China, and in both cases infrastructure, regulatory easing and cost (whether it be import taxes or cost of operation or both) remain impediments to growth in both countries, although India seems (in my opinion) to offer the more immediate market in the short to medium term. Japan is again a small but growing market, but the current economic situation in Japan would seem to indicate some very tough trading conditions going forward. At this time, Australia remains our largest single market in the area, although Malaysia has shown considerable growth these last two to three years.

SP’s: What role does trainer aircraft business play in terms of Cessna’s overall programmes? What are its growth potentials?

Esling: It is true to say that the market for business aircraft in the Far East has largely been founded on the special missions environment for our products, be it either specialised trainers (like the CV’s with Korean Air lines) or the Flight inspection aircraft we have delivered in China and Korea for instance. We have secured a number of trainer aircraft sales internationally, although these sales are not in the public domain at this point. In our product line the CJ1+ and the Mustang are the main areas of interest for trainer aircraft.

SP’s: Which of Cessna’s aircraft/programmes have been the most successful around the world?

Esling: I would say the Mustang, CJ2/3, XLS+ and Sovereign are our most successful models. In India for instance the CJ2+ and XLS+ do everything that is required in the market offering an all India capability in either a light or mid sized jet cabin. Certainly the XLS+ and Sovereign have been good sellers in all major international markets e.g. Canada, Brazil, the EU and Middle East. I think in all three cases, the aircraft I have highlighted offer the best balance of price, cabin size and performance in their respective market niche.

SP’s: How is the VLJ programme, Mustang to be precise, moving in terms of response from the global corporate aviation market?

Esling: Our Mustang order book has held up well in the current economic climate. We have some 125 slated for delivery in 2009. I think the aircraft offers excellent value for money ($2.9 million approximately in 2009), and obviously if you still want to fly, but want to do this cheaply, there is nothing better than the Mustang. Some 70 per cent of our deliveries are currently going outside the USA, with the EU the largest single market with Brazil second.

SP’s: Recently, there has been some debate that business jets are more for luxury and less for effective business needs. What arguments would Cessna offer to counter such perceptions?

Esling: There has been considerable discussion on this point over the last few months in the USA. This follows the TARP issue for the automobile OEMs and then the banks. As you may be aware Cessna has launched a high profile advertising campaign to support the benefits of business aviation. We continue to believe that the majority of our owners use their aircraft to support their business and to make more effective and efficient use of their time to support and grow their businesses. We will continue to communicate the benefits of business aviation to the market, and that the ownership of a business jet has a profound effect on the efficiency of a business and its owners. We are sure that the NBAA mantra of no plane, no gain is still as valid today as it was when it was first launched about a decade ago.

SP’s: Cessna is firmly established in corporate and general aviation programmes. Can you elaborate on the company’s long association with India—its genesis, evolution and progress—and your future plans in this country?

Esling: Cessna’s relationship to any country in the world has been fostered and shaped by the prevalence of our single engine aircraft. In India today many of our aircraft still fly after 30 or 40 years, and often form the basis of someone’s first introduction to the world of aviation. Many people who have flown Cessna 152s are today flying Citations in some shape or form. India is no exception to this rule. The air training role for the single engine aircraft is particularly important for the Indian market as the demand for pilots has soared. Essentially our plan is to continue and develop that association while also aiming to grow our Citation business jet ownership penetration in the Indian market.

SP’s: What has been Cessna’s relationship with Taneja Aerospace & Aviation Limited (TAAL)? What initiatives can a potential or current customer expect from TAAL in the context of Cessna aircraft operations and acquisitions?

Esling: TAAL has formed a vital part of our marketing success in India over the last decade. The recent addition of service capability to TAAL at Hosur outside Bangalore was a vital part of developing our market presence, as well as looking forward to developing a number of other service out stations in Delhi and elsewhere. We will continue to develop and enhance with TAAL our service and support offering in India to assist both our current and future operators.

SP’s: Is there any plan to expand the scope of tie-up with TAAL?

Esling: Not at this time.

SP’s: While the market could for now cool a bit, in a year-and-half it will hopefully start looking up again in India. How do you view the resulting potentials and what are your plans to strengthen Cessna’s standing to handle the evolution?

Esling: As I mentioned above we intend to strengthen our ties to the India market via TAAL, and in particular via our service offerings. At some point in time we will establish our own dedicated sales office in India.

SP’s: What kind of financial support does the company offer to potential customers?

Esling: Cessna can, and indeed has, financed several of its Citations sales into the Indian market. This has been done via our finance captive Cessna Finance Company (CFC). In fact this is a service now unique amongst the business jet OEMs. In addition our own service offerings such as engine and parts coverage on a bespoke power by the hour programme is further added value to our Citation customers in terms of providing fixed and predictable operating costs for our aircraft.

SP’s: Which of Cessna’s programmes offer more or less closer level of configurations to that of Airbus Corporate Jetliner and Boeing Business Jet?

Esling: We don’t have anything that would compete with the Airbus or BBJ. However, even the CJ1 upwards can be totally bespoke in terms of choices allowing for the size of the aircraft. Obviously the Citation Columbus will offer the closest experience to that of an ACJ compared with any of our other aircraft.

SP’s: What are the programmes in the pipeline?

Esling: We have the CJ4 programme coming along and it is now entering an intensive programme as we begin to approach final FAA certification. The other large programme now proceeding is the Columbus programme with our first wide body, 4,000 nm range business jets with first deliveries in 2014.

SP’s: What are the basic features that lend Cessna’s programmes a distinct edge?

Esling: Cessna has often touted the sensible Citation tag meaning that we employ aircraft that are easy and simple to fly, easy and simple to maintain (and therefore cost effective) and offer the latest applicable technology where it makes sense without the detriment of problematic dispatch reliability. So we have always tried to approach aviation offerings, whether product or services, that offer a practical and cost effective way of meeting our customer’s aviation needs. With 5,500 Citations in the market today I think the success of that approach speaks for itself.