777 P 16 JIM SCHUSTER Chairman and Chief Executive Officer Raytheon Aircraft Company RAYTHEON AIRCRAFT COMPANY (RAC), which reported sales of $2.1 billion in 2003, continued to drive down costs through a series of targeted initiatives, while achieving its financial, customer service and quality commitments. With the general avia- tion industry in a three-year slump, the company continued to be a more predictable performer, meeting its financial commitments for eight consecutive quarters.  33 Pursuing its goal of providing the industry’s finest customer service and support, RAC used new sys- tems technology to create a comprehensive communications track- ing system that provides customers with more efficient and personalized service. In keeping with its commitment to deliver the highest quality aircraft, the company achieved record final accept- ance quality levels in 2003.  33 Raytheon Aircraft’s™ revitalization of the Hawker and Beechcraft brands continued in 2003 with the addition of the Hawker 400XP jet to the Hawker line of business jets. With a 200-pound gross weight increase over its predecessor, the Beechjet ® 400A aircraft, the Hawker 400XP jet is positioned as the entry-level light jet in the Hawker brand. This gives corporate cus- tomers the option of upgrading to the mid-size Hawker 800XP jet and the new super mid-size Hawker Horizon ® jet. The Horizon pro- gram dramatically increased its flight testing in early 2003, began FAA flight tests in October and conducted long-range flights that  validated standard aircraft range and performance estimates.  33 The Beechcraft Premier I™ jet, with its speed, roomy cockpit, cabin and 3 baggage compartment, Pro Line 21™ avionics and handling quali- ties, was praised in a survey of operators, conducted in December 2003, by  Business and Commercial Aviation  magazine. One cus- tomer said the plane had “the best service I have ever had.” Another remarked, “I’ve never owned an airplane like this before and now I’ve got the ‘wow!’ syndrome.”  33 At October’s National Business Aviation Association convention, the Beechcraft division announced a significant upgrade to the Beechcraft King Air™ B200 and  350 aircraft with the addition of Collins Pro Line 21 “glass aircraft cockpit” avionics.  33 Raytheon Aircraft ended 2003 by announcing an order of $360 million from NetJets Inc. for 50 Hawker 400XP light jets, eight Hawker 800XP mid-size jets, and a long-term main- tenance agreement that includes the existing Hawker 800XP and Hawker 1000 business jets in the NetJets ® fleet of fractionally owned aircraft. The order includes an option for an additional 50 Hawker 400XP aircraft, which brings the total potential order value to more than $600 million.  33 Raytheon Aircraft’s Government Business Division delivered its 200th T-6A aircraft while receiving a $228 million order from the U.S. Government for an additional 47 aircraft and related training devices. The contract is part of the multi- billion-dollar Joint Primary Aircraft Training System program for mili- tary pilots.  33 Raytheon Aircraft continues to pursue its goal of being recognized as the world’s leading general aviation manufacturer by making product quality and customer service its top priorities. The Hawker 400XP was re-branded in 2003 to join the Hawker family of corporate aircraft. In December 2003, fractional operator NetJets Inc. ordered 50 Hawker 400XPs with an option for 50 more. An earlier version of the aircraft, based on the Beechjet 400A, serves as the tanker/transport pilot trainer for the U.S. Air Force known as the T-1A Jayhawk. The propulsion system highlighted in this illustration helps make the Hawker 400XP the fastest light business jet in the industry. RAYTHEON AIRCRAFT COMPANY 333