On the Record with
HANSEL TOOKES, PRESIDENT & CEO, RAYTHEON AIRCRAFT COMPANY

"All I ever wanted to do was be a Shuttle commander, run an airline or run an airplane company. So my dream came true."

Ex-Navy and United Airlines pilot Hansel Tookes stepped into the left-hand seat at Raytheon Aircraft last August to run the world's leading business and special mission aircraft manufacturer, with annual sales of more than $2.7 billion.

"When I came here to talk about coming on board, I already knew the product line -- the Beech Bonanza and King Air; the Hawker 800XP I had operated with my previous company for a year and a half, and before that a Beechjet.

"But when I stepped into Building Plant No. 3 and saw just one lady, all by herself, building the fuselage of the Premier I business jet, I knew I had arrived. I knew that I was standing in the face of aviation history, and I knew I wanted to be a part of it."

What Tookes had seen was the giant filament-winding machine weaving the composite fuselage of the Premier I entry-level jet. Raytheon is pioneering this major technological breakthrough in building aircraft much better, more cheaply and with far fewer parts.
Now, having seen the future, Tookes' job is to translate it into a business success. His five-year plan calls for doubling the size of Raytheon Aircraft Company and achieving the best customer satisfaction ratings in the industry.

The small, twin-engined $4.53 million Premier I will be certified this summer; three aircraft are in flight test, and will shortly be joined by a fourth. Orders already stand just shy of 300, and Tookes has boosted Raytheon's production plans to turn out 60 a year.

"It is such a small entry-level jet but the fuselage is remarkably roomy, almost the size of the Hawker 800XP," Tookes told Show News. "I can sit in the back and feel comfortable, and I'm a tall six-foot two-inches. Then, when I flew it, I knew it was right. It's a magnificent airplane."

He is equally impressed by the new Hawker Horizon super midsize jet, which uses a similar construction of composite fuselage and metal wings. "It is the most popular midsize jet in the world, with 150 orders before we've even rolled out the first one," said Tookes. Rollout will be later this year, and the $17 million jet has already won 150 orders. Certification is expected 18-20 months after first flight.

Tookes is sitting comfortably with 450 orders for new aircraft that aren't even in production, and with contracts from the U.S. Air Force and Navy for more than 700 T-6A Texan II advanced trainers. King Airs and Bonanzas are selling well, and Raytheon expects to keep selling 60 Hawker 800XPs a year.

But not all is rosy. Higher than expected costs and delays in the Premier I and Hawker Horizon programs so displeased parent Raytheon that the Aircraft Company is rumored to be up for sale, and customer support is not where Tookes would like it to be.

"Rumors of the sale-I just cannot comment on those," he said, as any such strategy would be determined at corporate level. "Everywhere I go people ask me that question. What's more important for us at Raytheon Aircraft Co. is to develop the best airplanes in the world.

"Second, customer service. It is not where I want it to be. We have to be No. 1. It's not just availability of parts, but the process of working with the customers to make sure they are satisfied."

One move in this area, which also freed up much-needed capital for parent Raytheon, was the sale in May of $800 million in aircraft receivables to DaimlerChrysler's debis Capital. The deal includes greater ability to finance future aircraft sales, which debis quantified as 200 to 250 airplane deals a year worth some $500 million annually.

"This was a very good move on our part," said Tookes. "It reduced our financing portfolio by a tremendous amount and gave us value in terms of creating a financing capability for our customers."

Tookes' admitted love affair with aviation has now come full circle. His first flight, with a Navy recruiter in 1969, was in a Beech T-34B Mentor -- and now he's running the company that built it. "I knew my life had a connection here at Beech Field," he said.

By John Morris