The Sun Will Come Up Tomorrow... Or Even Sooner If You're In Duluth

Like most of you, we could not be any sicker of all the bad news that has been hitting aviation, if we tried. We're ready for some good news... and darned if it didn't show up, all wrapped bright and shiny, and looking like INCREASED production for Cirrus Aircraft. In an internal memo first circulated to the troops in Duluth, Cirrus CEO Brent Wouters let on that they have increased their production rate in response to a sunnier sales picture (and believe you me when we tell you that the term "sunnier" really means something in the frozen North of Duluth---Ed.). 

So... earlier this past week Cirrus starting ramping up production to six aircraft per week. The increased rate follows nearly six months of significantly reduced production rates that averaged approximately two to three fewer units per week than the new 6X/week rate.

The memo notes that, "We continue to see very encouraging trends in sales activities and interest from sales prospects domestically and around the world. The introduction of the new model year lineup in early January - including FIKI; Cirrus Perspective by Garmin across the line; X-Edition and more - have us very well positioned in the market place. Clearly, this is an upward move and is indicative of a stronger bias toward growth in aircraft orders. At the same time, targeted production output will continue to be determined on a month-to-month basis as this flexibility allows us to favorably position the organization to meet market fluctuations."

So far, it doesn't[t yet mean much to adding staffing, but that is sure to follow... Cirrus admits that, "At this time, the increased rate will result in minimal impact to direct labor head count, due in large part to recent significant efficiency gains achieved as a result of ongoing lean production initiatives. Cirrus Aircraft employees, customers, shareholders and partners have worked closely together to manage our business in spite of some very stiff headwinds recently, and though we remain in a very challenging environment, our hope is that this new rate is the first step and initial indicator of what will become a more substantial trend into the second half of the year and beyond."

Cross your fingers, folks and let hope that we hear much more of this kind of news in the not too distant future. 

FMI: www.cirrusaircraft.com