Though it was not without some consolidation pains, the creation of Textron Aviation in March provided some newfound stability for Wichita's general aviation sector.
After Cessna Aircraft Co. parent company Textron Inc. (NYSE: TXT) closed on its purchase of Beechcraft Corp., it combined the operations of the two manufacturers into its new Textron Aviation division.
For the industry, it brought together iconic aerospace brands — brands that have remained separate and also included Hawker — under a single corporate parent and created the kind of consolidation many analysts saw as a positive.
For Beechcraft, it was the culmination of a several-year odyssey that saw it consider a move to Louisiana, eventually file for bankruptcy, entertain a possible sale to a Chinese company, and finally emerge from bankruptcy a leaner company after shuttering its Hawker jet production.
The purchase and subsequent merger by Textron finally answered what would happen to Beechcraft.
For Cessna, the merger added the valuable Beechcraft King Air line and special mission work that helps create an overall product line more capable of withstanding the ebb and flow of the aviation industry.
And the purchase has added to Textron's bottom line.
The company reported that the Textron Aviation division had a segment profit in the third quarter of 2014 of $62 million, a result it said reflected both the Beechcraft purchase and increased deliveries of certain Cessna aircraft.
It was a jump of $85 million year over year, when compared to the $23 million loss of the Cessna segment in the third quarter of 2013.
As to be expected with any merger, however, there were pains from the consolidation.
In April, the company announced 750 layoffs — 575 in Kansas — as it worked to right-size itself following the merger.
But as 2014 comes to a close, and the general aviation market begins to slowly pick up, the combined strengths and potential growth of Textron Aviation has put the Air Capital on more solid footing heading into the new year.
