Mergers, and Acquisitions

Cessna as a company has not been an independent company for approximately 30 years.  In 1985, it was bought by General Dynamics, a large aerospace and defense company, who then later sold it to Textron is 1992.  The initial agreement between Cessna and General Dynamics was one where Cessna would be a wholly-owned subsidiary, retaining much of the same structure and leadership team it had in place as an independent company.  While all the details are not known, it appears this move was a product extension merger, with both companies set to benefit from the experience and product lines of the other.  Cessna was a very large and experienced producer of general aviation aircraft, and General Dynamics had the experience and leadership to be able to pull Cessna out of a struggling time in its history.  For several years prior to the merger, Cessna had not been profitable.

Strategic Alliances

Cessna has formed a strategic partnership with King Schools to produce and market flight training materials for students.  This has served to increase the business for King Schools by permitting them to offer Cessna-branded materials, and it also increases the quality of instruction from Cessna pilot centers.  Rather than having individual flight instructors conduct ground school in their own manner, aspiring pilots have the ability to view videos from King Schools to acquire the same information in a structured, consistent manner.  It also permits students to save on their flight training by not having to pay an instructor for their time on the ground, and also permits them to learn at the same pace.  Instructors can also take on more students, as less of their time is spent teaching ground school and more time is spent in the air demonstrating maneuvers.