Lycoming Engines Launches Value Pricing and Expands Incentive Programs

March 14, 2004

Las Vegas, NV - March 14, 2004 - Lycoming Engines has launched a comprehensive incentive plan aimed at its customers, distributors and others to improve its aftermarket market share. Beginning with new 2004 pricing unveiled in January, Lycoming will improve the value delivered to its customers by holding the line on many of its product prices and decreasing prices on many others. This initiative was based on feedback from the company's current distribution channels. The feedback was based on a comprehensive "voice of the customer survey" implemented by McKinsey & Company. The survey included more than 50 face-to-face interviews and 200 electronic surveys. The feedback noted areas where Lycoming performs well and areas with room for improvement.

Improving engine availability and increasing support for delivering quality Lycoming factory overhauls were two of the primary areas Lycoming needed to address. From the survey, one key policy change was made to Lycoming's engine core exchange program. The company has undertaken significant measures to shorten the period for exchange engine returns to provide for more effective and timely credits issued to customers and reduce the lag in availability of engine cores for aftermarket engines.

"Fundamentally, we took a look at ourselves and sought new ways to improve our focus on customer needs, " stated Mike Wolf, Lycoming President. "This effort included pricing, but was more about improving the strength and robustness of our delivery systems for our products by working with our distribution partners in new ways."

Lycoming will review the number, type and geographic spread of its distribution channels to ensure the availability of its products and effective delivery of customer needs.

Additionally, Lycoming has expanded its incentive programs to strengthen the ties to its channel customers.

In February, Lycoming announced a new FBO/installer incentive program for factory rebuilt engines. This program recognizes the vital role played by mechanics, whose reputation often rests on the dependability and reliability of the engine overhaul or parts they recommend for their customers.

Lycoming's traditional incentive programs, such as the Fleet Operator Program that has provided over $3.5 million in rebates to valued fleet operators over the last seven years, are being continued.

Lycoming is an operating division of Textron's Avco Corporation subsidiary, specializing in manufacture and support of piston aircraft engines. Lycoming piston engines power more than half of the world's general aviation fleet -both rotary-wing and fixed-wing.

Textron Inc. (NYSE: TXT) is a $10 billion multi-industry company with more than 43,000 employees in 40 countries. The company leverages its global network of businesses to provide customers with innovative solutions and services in industries such as aircraft, fastening systems, industrial products, industrial components and finance. Textron is known around the world for its powerful brands such as Bell Helicopter, Cessna Aircraft, Kautex, Lycoming, E-Z-GO and Greenlee, among others. More information is available at www.textron.com.

Connect with Textron IR

Eric Salander, Vice President, Investor Relations
(401) 457-2288
Cameron Vollmuth, Manager,
Investor Relations (401) 457-2288

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