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releasing wartime materials such as steel, aluminum and rubber, to help manufacturers begin a return to peacetime production.
Cessna’s chief, Dwane L. Wallace, welcomed the return to peacetime operations, but it came at a steep price. The war’s end meant massive layoffs of personnel and the ax fell swiftly on thousands of workers. During the war employment had peaked at 6,074 people before plummeting to 1,000 after “V-E Day” (Victory in Europe), and fell to only 450 following the surrender of Japan in September 1945.
It is important to note here that late in 2013 Textron, parent
company of the Cessna Aircraft Company, acquired Beech Aircraft Corporation after it emerged from bankruptcy, but it was not the first attempt to bring the two organizations together. In July 1945 the aviation world was surprised to learn that senior officials of the Cessna and Beechcraft companies were discussing a potential merger of the two airframe manufacturers. The two companies had cooperated many times during the war to meet demand for aircraft, and the proposal seemed practical given that both businesses were located in Wichita, had the same auditors and fiscal years, neither had any debts and owned their factories.
In addition, both shared a desire to survive in the uncertain postwar marketplace.
Beech Aircraft’s director and financial advisor Thomas D. Neelands brought senior management to the negotiating table. As outlined by Neelands, Beech Aircraft would trade 233,000 shares of stock worth about $3.5 million for $5 million of Cessna facilities and working capital. In addition, Walter Beech’s company would be entitled to Cessna’s tradename. A series of meetings ensued but officials failed to agree on anything and in August the proposal had fallen flat on its face. A formal announcement was
MARCH 2020
KING AIR MAGAZINE • 29