Hawker expects majority of sales outside North America

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Over the next five years, Hawker Beechcraft expects that most of its sales wil be outside North America

Hawker BeechcraftOver the next five years, Hawker Beechcraft
expects sales growth outside of North America to continue to outpace sales
growth within North America. As an example,
ten years ago, the U.S.
market accounted for more than 70 percent of new sales. Accordingly, the
company is devoting additional investment and resources to capture such growth.

“We are seeing growth potential in emerging
markets including Africa, Asia, China, India, the Middle East, Russia and South
America,” said Sean McGeough, Hawker Beechcraft President of Europe, Middle
East and Africa. “Overall, the drivers of demand for new aircraft purchases are
slowly returning to pre-financial crisis levels, and demand is currently
stronger in these emerging markets than in North America and Europe.”

The installed base of aircraft in Russia, the Middle East, Africa and Latin
America is between 20 and 25 percent of the installed base in the U.S. In Asia, the corresponding figure is just six percent.

“There are a number of reasons for this
variation around the world, including the availability of financing tools,
customer service issues and a lack of parts supply programmes,” McGeough said.
“We see many of these issues as an opportunity for Hawker Beechcraft. With
increased globalisation and regulatory liberalisation, barriers to growth in
these markets are falling.”

Hawker Beechcraft is beginning to see
stabilisation in key market indicators and is cautiously optimistic that market
recovery will begin in 2012.

Despite the recent difficult market
conditions, Hawker Beechcraft has invested significantly in its operations,
including the placement of leadership in the regions, product development,
customer support and sales financing programmes. These investments will enable
the company to take full advantage of the expected recovery in the
business/private aviation sector. Hawker Beechcraft has also streamlined
production, improved aircraft performance and enhanced the customer experience.

Throughout last year, Hawker Beechcraft
carried out in-depth discussions with more than 3,000 owners and operators and
established a customer advisory board consisting of 50 owners from 30
countries. These have been qualitative discussions using survey techniques
designed to focus on the company’s brand, offerings and competitive
positioning. Hawker Beechcraft has analysed the data and used its insights to
drive product and service improvements.

“A key result of this strategic approach is
that we have developed new aircraft that are created with more than just the U.S. market in
mind,” McGeough said. “The future of our company is based on listening very
closely to our customers, as well as owners of aircraft manufactured by others,
and carefully designing our products to exceed their expectations. The new
Beechcraft King Air 250 and Hawker 200 are examples of how we listened to our
customers and are moving to the next level in the way we develop, sell and
support our aircraft around the world.”

Hawker Beechcraft also continues to make
significant investments in its customer support and parts infrastructure. It
recently expanded its relationship with ExecuJet to provide service for all
Hawker products at facilities in Dubai, UAE; Lagos, Nigeria;
Cape Town, South
Africa; Lanseria, South Africa; and Melbourne
and Sydney, Australia. It is also committed to
ensuring the best parts distribution and service around the world. Last year,
Hawker Beechcraft invested in critical spare parts and signed an agreement with
Schenker Logistics to facilitate international parts distribution in London, Dubai and Singapore.

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