Feb 11, 2009

Cessna fights back



In what may have been one of the biggest public relations blunders in recent memory, the CEOs of Detroit's "Big Three" automakers flew to Washington DC on private jets to request government bailout money. Then word leaked out that Citibank, also a recipient of $45 billion in government funds, had ordered and was about to finish the purchase of a luxurious $50 million corporate jet from a French manufacturer.

The media and public both skewered the Detroit CEOs and Citibank at the time for their use of corporate jets. Its like asking your nurse for caviar and champagne when you're on life support. The Big Three disbanded their fleets. Citi canceled their order for their jet. And in the wake of the unexpected public backlash, orders for business jets have taken a sharp nose dive.

Across the industry, new orders for private jets have almost evaporated, and hundreds of existing customers have sought to defer or cancel orders that were placed in higher-flying days. In addition to layoffs, some jet makers have cut production by as much as 56%. Cessna Aircraft Co. is laying off more than 4,600 people, or roughly a third of its work force, to cope with the sudden drop in demand for private airplanes of all sizes.

Now Cessna is fighting back. In a campaign that launches today, Cessna will run an ad that says, "Pity the poor executive who blinks," and gets rid of the company jet. "One thing is certain: true visionaries will continue to fly." In another ad, Cessna says "Timidity didn't get you this far. Why put it in your business plan now?" Instead of retreating, Cessna argues, companies should adjust and make sure they are flying the right type of aircraft.

So far, Cessna is the sole jet maker to take on the negative publicity with a high-profile ad campaign. Total cost of the campaign, developed by Dickerson-Grace in Denver, is unknown, but a spokesman for Cessna did say the company has "redirected more than half of our promotional budget to this campaign."

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