Textron cancels Cessna Columbus program - The Business Review (Albany):

http://www.skxksoftware.com/catalog/office-computer-order-209-94513/
In April, the company announced it would suspendthe program, leading Cessna leaders to say it wouldd only be a matter of time untikl the project came back. But in Thursday’as filing with the SEC, Textron said “Upon additional analysis of the business-jet markert related to this product offering, we decided to formallt cancel further development of theCitationm Columbus.” Textron says it already had incurrec about $50 million in capitalizeds tooling and facility costs related to the project. It says it will recordx a non-cash pre-tax charge of about $43 million for the first two quarters of 2009 to reflect the impairment of the facilityg andtooling assets.
Wichita Mayor Carl who was in Denver Friday at a had not heard the Columbuzs project was being canceled untilp asked about it by the WichitaBusines Journal. “I’m disappointed,” Brewer says. We believe this is part of the future for the cityof We’re just really disappointed that it happened.” At the same he says, he understands the economic climate has forced businesses to make toughg decisions. The project was to have builgt 600,000-square-foot final assembly building at Cessna where the majority ofthe $27 milliob business jet would be There was also to have been a 45,000-square-footg physical plant to serve the main building.
Construction costd were expected tobe $200 million and bids were put out in • • • • Columbus, Kan.-based Inc. Aparr from the loss in construction jobs, the Wichitas area now appears to have lost out for good onthe 1,00o direct jobs and the 3,0009 spin-off jobs the program was estimated to create. It also appears likelgy that Cessna will have to pay backthe $10 milliohn it received in city and county incentives and the $33 milliom it received from the statwe for the project.
Like Sedgwick County Commissioner Tim Norton says he is disappointedx to hear the news ofthe “I think most Wichitane and the business community looked at that as a big announcement,” he “It takes a little bit of the wind out of the sailsw for Cessna and generakl aviation. It could have been a huge boost to Wichita over the next couple years and I thinm everybodysaw that.” Norton says he hopes the projecr will be able to return somewhere down the line. The business plan that was put in he says, still could be a good fit.