New Raytheon Aircraft Chief Makes Paris Debut

Paris Air Show 2001 marks the first international appearance of James E. Schuster, the new chairman and CEO of Raytheon Aircraft Company.

Schuster replaced Hansel Tookes this month as the head of Raytheon's aircraft unit, which now faces a declining market for some product lines, fresh layoffs and ongoing speculation regarding the sale of the company.

"I've been on board for two weeks and I'm learning very quickly," Schuster tells Show News. "One thing for certain, you can't make generalizations about the whole market-the factors that drive sales are different for each aircraft class and type."

Schuster said he spent his first weeks as CEO evaluating the company's financial performance and reviewing aircraft production rates. As a result of this study, RAC plans to reduce Beechjet and King Air production for the rest of the year.

"In an uncertain economy, business airplane markets are mixed," he says. "We've tried to match up the King Air and Beechjet line rates with this spotty market. At the same time, we've kept production rates up for the Hawker [800XP] because it's performing well in its market.

"Clearly, the markets for Raytheon's new composite fuselage jet family-the Premier I, Hawker 450 and Hawker Horizon-are actually robust by comparision."

To underline this point RAC announced two orders for the new Hawker 450 at Le Bourget; one to Dutch operator Tulip Air, another to Fine Light, an Illinois-based marketing company that also has a Beechjet on order.

While no "insurmountable problems" were unearthed in his first look at RAC's operations, Schuster says he is taking immediate steps to bring managers closer to the action. He's directed senior staff to vacate the company's fourth floor offices and return to the "mahogany row" offices near the production line.

Beechcraft buffs know these offices were once the domain of Walter and Olive Ann Beech, who led the company during its "glory years" after the Second World War.

"The heritage of the Beech and Hawker airplane lineages is unsurpassed in the aviation world," Schuster says. "Our goal is to recapture some of that original spirit, and RAC today is populated with very talented people who really care about our customers."

Schuster has experience with three companies spanning two decades. He came to Raytheon in 1999 from MagnaTek Inc of Nashville, Tennessee, where he ran its Motors and Generators unit. Previously, he held top jobs at AlliedSignal and Westinghouse.

RAC's static display at the Paris show includes a Hawker 800XP midsize business jet, a light Beechjet 400A, two Beech King Air twin turboprops and the T-6A military trainer. The company also is displaying a cabin and cockpit mockup of the Hawker Horizon business jet.

This summer, RAC is planning a European tour for the Premier I, the entry-level light jet that won U.S. FAA certification this spring.

By Paul Richfield