Mr Trevor Esling
Vice President International Sales, Cessna Aircraft

How do you perceive the corporate aviation market developments in 1 year, 2 years and 5 years from now?
Clearly the next 12 -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 6 or so months thereafter. Looking 5 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 Globalization 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 favor 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.

How would you rate the following parts of the world in terms of market potential in coming times:
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 show considerable growth these last 2-3 years.

What role trainer aircraft business plays in terms of overall busines of Cessna programmes? What are the growth potentials?
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 specialized 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.

Which aircraft/ programme has been the most successful as of now around the world? What are the reasons behind the achievements?
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 3 cases the aircraft I have high lighted offer the best balance of price, cabin size and performance in their respective market niche.

How is VLJ programme (Mustang as I can refer to) moving in terms of response from the global corporate aviation market? Can you give some inputs regionswise (listed above)?
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 (US$2.9mm approx 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% of our deliveries are currently going outside the USA, with the EU the largest single market with Brazil second.

There has been some debates recently that business jets are more for luxury and less for effective business needs saving time enabling expansions. What arguments Cessna offers to counter such perceptions?
There has been considerable discussion on this point over the last few months in the USA. This follows the “TARP” issue for the automobile OEM’s 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.

Cessna has been a long-established company in corporate and general aviation programmes. Can you give some inputs of your long-association you have had with India (the way it started and it has continued and evolved) and your future plans in this country?
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 152’s 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 continue and develop that association while also aiming to grow our citation business jet ownership penetration in the Indian market.

Please can you enlighten on the relationship with TAAL? What all initiatives the potential customer/ ongoing customer can/ should expect from TAAL in the context of Cessna aircraft operations/ acquisitions?
TAAL has formed an important and vital part of our marketing success in India over the last decade. The recent addition of service capability to TAAL’s capability 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.

Is there any plan to expand the scope of tie-up with TAAL? Please can you give some details?
Not at this time.

While there could be 'a bit of cooling in the market', there is an understanding in a year and half the market should start looking upwards more firmly in India. Thereby pretty stronger potentials for your various programmes in this country. How do you look at these aspects? And what are your plans to strengthen Cessna's standing even further to handle the evolution?
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.

What kind of financial support is offered by your company to the potential customers helping them speeding up their decisions to acquire your aircraft?
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 OEM’s. In addition our own service offerings such as engine and parts coverage on a bespoke “power by the hour” program is further added value to our citation customers in terms of providing fixed and predictable operating costs for our aircraft.

Which particular programme of Cessna offers moreorless closer level of configurations to that of Airbus Corporate Jetliner/ Boeing Business Jet?
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.

What are the future programmes in pipeline? Can we get some inputs in detail?
We have the CJ4 program coming along and it is now entering an intensive program as we begin to approach final FAA certification. The other large program now proceeding is the Columbus program with our first wide body, 4000 nm range business jets with first deliveries in 2014.

What are the basic features that give Cessna programmes a clear edge versus its competitions?
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 over the latest applicable technology where it makes sense without the detriment of problematic dispatch reliability. So we have always tried to approach and aviation offerings, whether product or services, that offers a practical and cost effective way of meetings our customer’s aviations needs. Our success, in terms of 5500 citations in the market, I think speaks to the success of that approach.