WICHITA, Kan. (AP) -- Cessna Aircraft's chairman and chief executive has sent a memo to employees saying the difficult economy could create pressure on the aircraft company.
Jack Pelton said in the memo sent last week that the full impact of the economy on Cessna in the short term is unclear, but there is continued pressure on financial performance. The memo was obtained by The Wichita Eagle.
"We must recognize these are extraordinary times calling for extraordinary performance," Jack Pelton said in the memo. "This is not meant to panic anyone, only to keep you informed."
Cessna has seen a slow-down in its market, Pelton said. Some of the factors contributing to that slow-down are rising numbers of used aircraft on the global market, a decline in aircraft use and a slowing of sales in fractional ownership businesses.
Cessna also expects the credit crisis to affect customers' access to financing.
"For the short-term, we cannot ignore current economic realities," Pelton said.
Pelton also said Cessna will fill only "critical positions" the rest of the year and into 2009.
"We think it's the prudent thing to do to see how the economy shakes out over the next few months," Cessna spokesman Doug Oliver said Thursday.
Cessna employs 16,000 people, including 12,000 in Wichita. The company has plans to deliver 470 Citation business jets this year and more than 500 in 2009. It also has an order backlog of more than $15 billion.
In the past year, Cessna has hired 1,500 people as it plans to deliver 470 Citation business jets this year and more than 500 in 2009. It also has an order backlog of more than $15billion.
The memo was sent to keep employees informed on the factors that will shape the company's business decisions, Oliver said.
"It's a changing economic environment," he said. "It has the potential to impact the way we do business here. I think it's important to keep employees up to date."
