GRAHAM WARWICK / WASHINGTON DC
Raytheon opts to upgrade older aircraft as the effects of economic downturn rumble on
Raytheon Aircraft has suspended development of the Hawker 450 light mid-size business jet, and will instead upgrade older aircraft in an attempt to revitalise falling sales. The firm blames the economic slowdown for its decision to stop work on the composite-fuselage aircraft.
The Wichita, Kansas-based manufacturer says it could restart the programme if the economy recovers, with a decision not expected before the third quarter. Options include restarting development of the Hawker 450 or switching to a derivative of the entry-level Premier I or super mid-size Hawker Horizon - both of which share the same fibre-placed composite fuselage technology.
The Hawker 450 was launched in 2000, but the programme has experienced substantial delays and the company had planned a conservative 70-month certification programme. The Premier was certificated in April last year, 28 months late, and the Horizon is planned for certification next year after a delay of around two years.
Jim Schuster, who took over as Raytheon Aircraft chief executive in June, reportedly suspended work on the Hawker 450 after questioning the company's ability to develop another all-new aircraft until it had successfully introduced both the Horizon and Premier.
Instead the firm is looking at engine, avionics and interior upgrades for its Beechjet 400As, and Hawker 800XP business jets and older King Air turboprops, sales of which have plunged in the past year as the economy has slowed.
The company has been forced to substantially cut production rates for its older aircraft. This year, Raytheon expects to build 18 Beechjet 400As, down from 32 last year, 38 Hawker 800XPs, down from 62, and 99 King Airs, against 123 in 2001.
In addition, the company will cut production of piston-powered Barons and Bonanzas to 91 aircraft, down from 132 last year. Production of the Premier will increase significantly, from 18 aircraft to 52, but not enough to prevent the overall number of civil aircraft built by Raytheon declining to 309 units from 379 last year.
This year's total is expected to include 11 Beech 1900Ds, down one from 2001. But from next year Raytheon will only build the regional turboprop to meet cash orders, so the production rate beyond 2002 has yet to be determined.
Some of the company's financial problems are the result of the large number of 1900s being returned off lease.
Source: Flight International
