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On the Record with
GARY HAY, VICE CHAIRMAN, CESSNA AIRCRAFT COMPANY

Hay Sees New Planes to Maintain Lead

Gary Hay, a 33-year veteran of Cessna Aircraft, is the first to admit he has "some enormous shoes to fill" when he takes over as chief executive officer from Russ Meyer next January. Asked where he plans to take the company, he replied somewhat flippantly:

"My answers change somewhat every day when I wake up and come up with another new set of ideas."

But there's a lot of truth behind what he says. Indeed, ideas are flying fast and furious around Cessna as it takes a serious stab at flight planning its future path. Already the world's leading general aviation manufacturer with 3,000 business jets to its credit and some 2,700 single-engined airplanes in the last three years, Cessna aims to build on that unassailable base.

Customers can look for more new models over the next two or three NBAAs.
"Last year we introduced an unprecedented four business jets at NBAA," said Hay. "We plan on continuing down that track in the future. That will be a product of a studied analysis of our customer needs and will range across our product line from the single-piston airplane right through our flagship Citation X and perhaps beyond. There are some wonderful opportunities in various parts of the middle of that spectrum."

Beyond the X? "Some of those are obvious by virtue of the success of the global airplanes, and by mentioning that I am in no way suggesting we have any intent to go that direction," said Hay. "But there are things we can do up to and between Citation X and the Cessna 172 or its ultimate successor that we certainly will spend a lot of time analyzing.

"We're very active in that regard and have a number of good ideas we're currently working on, There are some new powerplants on the horizon we're excited about and obviously we have to have those to take us to new products, said Hay. He would not be specific but allowed that diesel engines and small turbofans were under study.

Don't expect anything radical, though, at least in terms of hardware. Hay allowed that Cessna's philosophy is to walk right up to the leading edge of technology and then take one step back in designing a more mature product for its customers. Services could well be a different matter.

"We're looking at offerings of different kinds of different transportation methodologies," said Hay. "I really don't want to divulge that as it's a little unique, at least by our definition, but its a direction we might be considering for the future. It would be a combination of the aircraft and supporting services and an array of other things that perhaps go beyond that."

This image of a dynamic, adventurous Cessna is being constructed on a far-reaching set of five strategic initiatives rolled out in April as a master plan for the next 20 years. They are:
o Focus on the customer by satisfying in virtually every respect what Cessna can identify as his or her requirements, including new product development;
* Plan on establishing Cessna as a benchmark for world standards in aviation;
* Enhance operating performance;
* Adopt practices to make Cessna one of the top 10 companies to work for in America and the rest of the world; and
* Focus on financial performance.

Cessna's" High Five" -- customer, quality, greater operating performance, the choice company to work for in the world, and the best interests of its shareholders--might seem audacious, Hay allowed. "While we don't mean to be presumptuous with them at all, we feel they must be aggressive and should stretch us," he said.

"We don't have any intention of reinventing the company, but if we are going to be the industry leader as we have been in the past, there are some things we have to change, and some sooner than later."

By John Morris
NBAA 1999, Atlanta, Ga.


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