Raytheon Co. said preliminary orders for 38 of its Premier I business jets
were canceled this year, and the company cut its delivery forecast
for the plane, which has been criticized for noise.
Raytheon expects firm orders for the jet to total 32 to 38
this year, spokesman David Polk said. In July the forecast was 43,
a drop from an earlier estimate of 52. Raytheon doesn’t count
preliminary orders in its delivery forecasts.
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Raytheon, the fourth-largest U.S. defense contractor, is
counting on the Premier I to revive sales in its business-jet
unit, which had a 2001 loss of $772 million. The company began
selling Premier I last year, following a federal-certification
process that lasted two years longer than the company expected.
The Lexington, Massachusetts-based company is addressing the
complaints, Polk said. There is a backlog of 231 of the aircraft,
which are made in Wichita, Kansas, and sell for about $5.3 million
each.
“The noise complaints are not an issue anymore,” Polk said.
“Our customers think that the plane is great.”
The Wall Street Journal reported today that two-thirds of
Premier I customers had reported problems.
Raytheon has been trying to improve performance at the unit
for the past few months by cutting costs and firing workers. It
replaced the head of Raytheon Aircraft last year.
