Fractional Ownership Company Cancels Huge CJ3 Order

A lot of people wondered earlier this week if the market in fractional bizjet ownership had suddenly gone through the roof. NetJets had ordered 58 new jets, a $360 million order. That was on top of the 50 CJ3s NetJets already had on order from Textron's Cessna.

Friday, NetJets dropped the other shoe. It cancelled its order for the Cessna aircraft.

"Market reception for the CJ3 has been tremendous and we are on track to begin delivery in the fourth quarter of next year," said Cessna CEO Jack Pelton. "Our current backlog for the CJ3 will allow us to fill out the planned CJ3 production schedule well into 2007."

"Cessna is a strong strategic partner with NetJets, with the largest population of aircraft in its fleet. As such, we are obviously disappointed in this decision," said Pelton. "As the leading manufacturer of light to mid-size business jets, we look forward to our continued partnership with NetJets in bringing the advantages of jet ownership to a wider population of customers."

"We are encouraged by current retail jet order activity and we remain on track to deliver between 165-170 jets in 2004," said Pelton.

FMI: www.textron.com