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2025 EU-US Aerospace Trade Agreement Restores Zero Tariffs

The 2025 EU-US trade deal eliminates tariffs on aerospace products, supporting US jobs and maintaining industry competitiveness.

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The NBAA’s Endorsement of Zero-Tariff Aerospace Trade: Analyzing the 2025 EU-US Agreement and Its Strategic Implications for American Aviation

The National Business Aviation Association’s (NBAA) applause for the 2025 EU-US trade agreement marks a pivotal moment in transatlantic aerospace commerce. This agreement, announced on July 27, 2025, and implemented on August 7, 2025, eliminates all tariffs on aircraft and component parts traded between the United States and the European Union. It ends a brief but economically disruptive period of protectionist measures, restoring a zero-tariff environment that has underpinned American aerospace dominance for over four decades.

The significance of this agreement extends beyond tariff elimination. It reflects a strategic recognition of the aerospace sector’s unique position as America’s leading manufacturing export industry, which generates a substantial trade surplus and supports millions of American jobs. NBAA’s endorsement underscores the association’s understanding that this agreement restores competitive equilibrium, reinforces the United States’ leadership in aerospace innovation and safety, and builds upon the foundational 1979 Agreement on Trade in Civil Aircraft.

As the aerospace industry faces evolving global trade dynamics, NBAA’s support for the EU-US agreement signals the importance of stable, predictable trade conditions for maintaining America’s technological and economic edge in one of its most vital sectors.

Historical Foundation: The 1979 Agreement on Trade in Civil Aircraft

The 2025 EU-US agreement’s roots trace back to the 1979 Agreement on Trade in Civil Aircraft, a landmark sectoral trade pact signed by President Carter and 32 other signatories. Taking effect in 1980, this agreement established a comprehensive framework for duty-free trade in civil aircraft, engines, simulators, and related components. It emerged at a time of heightened international competition and economic uncertainty, particularly as Airbus began to challenge American manufacturers.

The 1979 agreement went beyond eliminating tariffs. It required that government aircraft purchases be based on technical and commercial factors, not political considerations, a significant measure to prevent market distortion and ensure fair competition. The agreement’s scope covered not just finished aircraft but also the intricate network of components, engines, and avionics essential to modern aerospace manufacturing.

Safety harmonization was another cornerstone of the agreement. Signatories committed to maintaining certification and manufacturing standards equivalent to the Federal Aviation Administration (FAA), fostering a unified safety culture that has contributed to the exceptional safety record of commercial aviation. Over the decades, the agreement grew to include 33 signatories and 25 observers, facilitating reciprocal tariff-free trade and contributing to more than a 2,000 percent growth in the American aerospace trade surplus since its inception.

“The 1979 Agreement on Trade in Civil Aircraft created the institutional and legal framework that made zero-tariff aerospace trade possible, supporting decades of American leadership in the sector.”

The 2025 EU-US Trade Agreement: Structure and Implementation

The 2025 trade agreement represents a comprehensive restructuring of transatlantic trade relations. While most EU exports to the US now face a 15% tariff or Most Favored Nation status (whichever is higher), the aerospace sector is exempted under a “zero-for-zero” arrangement. This ensures all aircraft, engines, landing gear, seats, avionics, and related parts can move tariff-free between the US and EU.

This provision is particularly notable given the broader context of rising US tariffs in 2025, which reached the highest levels in a century. The agreement reversed the 10% tariff on aircraft and aviation parts imposed earlier in the year, restoring the tariff-free environment that had characterized the industry for over forty years.

Implementation required coordination between government agencies and industry stakeholders. The Trump Administration issued executive orders and the Commerce Department published formal guidance to ensure a smooth transition. The aerospace provisions officially took effect on September 1, 2025, giving manufacturers and airlines time to adjust supply chains and pricing strategies accordingly.

Economic Impact and Industry Significance

The restored zero-tariff environment has broad economic implications. The US aerospace and defense industry is America’s leading export manufacturing sector, generating a trade surplus of $73.9 billion in 2024 and supporting over 2.2 million jobs. In 2023, aerospace exports totaled $135.9 billion, while imports reached $61.4 billion, resulting in a $74.5 billion surplus.

Aerospace jobs are among the highest-paying in US manufacturing, thanks to the technical expertise required. The zero-tariff regime helps maintain the cost competitiveness of American aerospace products, supporting both domestic employment and international market access.

The agreement also facilitates efficient supply chain management. Modern aerospace manufacturing depends on just-in-time delivery and lean inventory practices. Tariff uncertainty complicates these systems, but the restored zero-tariff environment eliminates such inefficiencies, allowing manufacturers to optimize operations based on technical and commercial criteria.

“The zero-for-zero tariff regime will grow jobs, strengthen our economic security and provide a framework for U.S. leadership in manufacturing and safety.” — Airlines for America

Industry and Stakeholder Responses

Industry response to the agreement has been overwhelmingly positive. NBAA President and CEO Ed Bolen praised the deal for restoring a level playing field and fostering innovation. Airlines for America, representing major US carriers, emphasized the benefits for jobs and economic security. Delta Air Lines highlighted the preservation of a zero-tariff environment on aircraft and parts as critical for sustaining US economic growth and protecting the aerospace trade surplus.

The General Aviation Manufacturers Association echoed these sentiments, noting the agreement’s role in supporting the civil aerospace supply chain and fostering industry health. European manufacturers, including Airbus, also welcomed the deal, citing the necessity of a stable and predictable trade environment for an integrated global industry.

Political leaders across the spectrum endorsed the agreement, recognizing its importance for American competitiveness and international partnerships in advanced manufacturing.

Global Trade Context and Strategic Implications

The aerospace sector’s special status in the 2025 agreement is notable given the broader context of rising US tariffs and escalating trade tensions, particularly with China. While average US tariff rates increased dramatically in 2025, the aerospace industry retained a zero-tariff regime, reflecting its strategic importance and America’s technological advantage.

The EU-US agreement also complements a similar deal with the United Kingdom reached in June 2025, reinforcing stable trade relations with America’s traditional allies. This is crucial for maintaining integrated supply chains and international partnerships in aerospace manufacturing.

The agreement goes beyond aerospace. The EU committed to $750 billion in US energy purchases through 2028 and European companies plan $600 billion in US investments during the current presidential term. These commitments create a foundation for mutual interdependence and broader economic stability.

“A stable and predictable trade environment is essential for our highly integrated global aerospace industry.” — Airbus

Challenges and Future Outlook

Despite broad support, challenges remain. Legal uncertainties persist, with ongoing court reviews of the administration’s trade authority. The implementation of the aerospace provisions also requires careful product classification and verification to ensure compliance with technical and safety standards.

Market dynamics are evolving. The Boeing-Airbus duopoly faces potential competition from emerging manufacturers such as China’s Comac, which could alter the benefits of zero-tariff trade for US and EU companies. Technological shifts, including electric and hybrid propulsion and new materials, may require updates to trade agreements to cover innovative products.

Environmental requirements and sustainability standards are becoming increasingly important in both the US and EU. Harmonizing these regulations while maintaining zero-tariff trade will demand ongoing cooperation between regulators and industry.

Conclusion

The NBAA’s endorsement of the 2025 EU-US trade agreement reflects a deep understanding of the conditions necessary for American aerospace excellence. The restoration of zero-tariff trade with the EU eliminates barriers that threatened supply chains, partnerships, and the competitive dynamics that have made aerospace America’s leading export sector.

Looking ahead, the agreement’s success will depend on continued commitment to reciprocal free trade, technological cooperation, and regulatory harmonization. As the aerospace industry faces new competitors, technologies, and environmental challenges, ongoing dialogue and adaptation will be crucial. The NBAA’s advocacy for extending zero-tariff treatment globally underscores the need for a comprehensive multilateral approach to support innovation and competition in this vital industry.

FAQ

What is the main outcome of the 2025 EU-US trade agreement for aerospace?
The agreement restores zero tariffs on aircraft and component parts traded between the US and EU, reversing previous tariff increases and supporting the integrated aerospace supply chain.

How does the agreement impact American aerospace jobs?
By eliminating tariffs, the agreement supports over 2.2 million US aerospace jobs and helps maintain the sector’s competitiveness in global markets.

Why is the aerospace sector treated differently from other industries in the agreement?
Aerospace is a strategic sector where the US maintains technological leadership and a significant trade surplus. Zero-tariff trade supports innovation, safety, and economic security for both sides.

Are there any challenges to the agreement’s implementation?
Yes, legal challenges and the need for careful product classification and regulatory harmonization remain ongoing issues that both governments and industry must address.

Sources: NBAA

Photo Credit: Montage

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FAA and NBAA Address Challenges in Florida’s Congested Airspace

FAA’s capping-and-tunneling initiative and NBAA recommendations aim to manage Florida’s complex airspace with 44,000 daily flights and reduce delays.

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This article is based on an official press release from National Business Aviation Association (NBAA).

Navigating Florida’s Congested Skies

Florida’s airspace is among the most complex and congested in the United States, handling approximately 44,000 commercial and general aviation flights daily, alongside periodic space launches. To address these mounting challenges, the Federal Aviation Administration (FAA) established the Florida Task Force two years ago, collaborating with industry stakeholders, including the National Business Aviation Association (NBAA).

Following the task force’s recommendations, the FAA implemented a “capping-and-tunneling” initiative. This strategy restricts shorter flights to altitudes below 23,000 feet, reserving higher airspace sectors for longer-haul traffic. While this approach has improved capacity, NBAA Air Traffic Services (ATS) experts note in their recent release that operators still face significant hurdles when navigating the region.

To help flight crews and dispatchers mitigate delays, the NBAA recently issued a set of seven strategic recommendations for operating in Florida’s dynamic airspace.

Understanding the Airspace Bottleneck

According to the NBAA, the geographical shape of Florida creates a natural bottleneck for air traffic. Flights arriving from the north and west frequently converge with departures from South Florida and the Caribbean in the central part of the state.

“Florida airspace is like a funnel,” explained NBAA ATS Director Janice Planten, noting that traffic from multiple directions “converges in the middle of the state.”

While the capping-and-tunneling program provides some relief, NBAA ATS Senior Manager Dan Snell emphasized that air traffic controllers still face the complex task of blending climbing and descending traffic throughout Central and South Florida.

Key Strategies for Operators

Utilize FAA Planning Tools

The NBAA strongly advises operators to consult the FAA’s National Airspace System (NAS) Status page during preflight planning. This resource provides real-time data on airport delays and includes the FAA’s daily Operations Plan, which outlines specific constraints and the agency’s intended solutions.

Adapt to Altitude and Routing Constraints

When the FAA’s Jacksonville Air Route Traffic Control Center utilizes capping and tunneling, the NBAA recommends that crews on shorter routes proactively file for lower altitudes. Although flying lower may increase fuel consumption, it can significantly reduce departure delays. Furthermore, operators should clearly communicate their aircraft’s capabilities to Air Traffic Control (ATC), such as the ability to fly deep-water routes or accept non-standard routing.

Optimize Flight Plan Filing

Filing flight plans early ensures that an aircraft is registered as “known demand” within the ATC system. Conversely, the NBAA warns against “double filing” or submitting a new flight plan within an hour of the scheduled departure. Doing so generates a new system entry that often leads to further delays; instead, crews should request a reroute directly from ATC.

Maintain Operational Flexibility

If a destination airport is experiencing high volume and delay programs, the NBAA suggests considering nearby alternate airports. Additionally, collaborating with passengers to adjust travel times can help operators avoid peak congestion periods.

AirPro News analysis

We observe that the congestion in Florida’s airspace highlights a broader national challenge as general aviation, commercial airlines, and commercial space operations increasingly compete for limited airspace. The FAA’s capping-and-tunneling initiative represents a necessary tactical shift, but long-term relief will likely require continued modernization of ATC infrastructure and greater flexibility from operators. Until systemic capacity increases, adherence to the NBAA’s preflight and filing best practices remains the most effective way for private and business aviation to minimize disruptions.

FAQ

What is the FAA’s capping-and-tunneling initiative?

It is an air traffic management strategy that keeps aircraft on shorter flights below 23,000 feet, freeing up higher altitudes for longer flights to increase overall airspace capacity.

How many aircraft operate in Florida airspace daily?

According to FAA data cited by the NBAA, approximately 44,000 commercial and general aviation aircraft share Florida’s airspace on any given day.

Why shouldn’t pilots double file flight plans?

Refiling within an hour of departure creates a “pop-up” entry in the FAA’s system, which typically results in additional delays rather than expediting the departure.

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Photo Credit: NBAA

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Daher Advances Single-Engine Turboprops with TBM 980 and Kodiak 900

Daher delivered 76 aircraft in 2025 and launched the TBM 980 with advanced avionics and the Kodiak 900 utility plane, strengthening its market presence.

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This article is based on an official press release from Daher.

Daher, the world’s oldest airplane manufacturer in continuous operation, is aggressively modernizing its footprint in the single-engine turboprop market. Tracing its aviation roots back to the pioneering French company Morane-Saulnier in 1911, the €1.8 billion aerospace industrialist has successfully cultivated two distinct but complementary aircraft families: the high-speed TBM and the rugged Kodiak.

According to a recent company press release and market updates, Daher delivered 76 aircraft in 2025, stabilizing its market presence while preparing for a major product cycle update. The company’s dual-continent manufacturing strategy, producing the TBM in Tarbes, France, and the Kodiak in Sandpoint, Idaho, has allowed it to capture diverse market segments ranging from luxury private aviation to heavy-duty public service operations.

In January 2026, Daher officially unveiled its newest flagship, the TBM 980, signaling a strong push toward advanced automation and passenger connectivity. As the general aviation sector increasingly prioritizes fuel efficiency and operational economy, Daher’s strategic evolution of both the TBM and Kodiak lines positions the manufacturer to compete fiercely against industry giants like Textron Aviation and Airbus.

The TBM Family: Introducing the TBM 980

The TBM series has long been recognized for offering jet-like cruise speeds combined with the operational cost benefits of a single-engine turboprop. Following the acquisition of the product line in 2014, Daher launched the highly successful 900-series, which recently celebrated its 600th delivery in 2025.

Next-Generation Avionics and Safety

In January 2026, Daher introduced the TBM 980. According to the company’s specifications, the new variant is powered by a Pratt & Whitney PT6E-66XT engine paired with a five-blade Hartzell composite propeller. The most significant upgrades, however, are found in the cockpit and cabin.

The TBM 980 integrates the third-generation Garmin G3000 PRIME avionics suite, which utilizes three 14-inch edge-to-edge touchscreens designed to drastically reduce pilot workload. Furthermore, the aircraft features the HomeSafe™ emergency autoland system. In the event of pilot incapacitation, this system can autonomously navigate, communicate with air traffic control, and land the aircraft safely.

Passenger experience has also been a focal point for Daher. The TBM 980 cabin now includes a Starlink Mini satellite internet terminal, high-power USB-C ports, and an upgraded passenger display system. Market reception has been exceptionally strong; Daher reports that production slots are already pushed into 2027. As of April 2026, the company has delivered 10 TBM 980s, including one to long-time customer Dr. Ian Fries, who recently took delivery of his sixth TBM aircraft, a testament to the brand’s high rate of repeat buyers.

The Kodiak Family: Expanding Utility

While the TBM caters to high-speed luxury, the Kodiak family is engineered for remote, off-airport, and amphibious operations. Daher acquired Quest Aircraft in 2019, bringing the unpressurized, 10-seat Kodiak platform into its portfolio.

Scaling Up with the Kodiak 900

Complementing the rugged Kodiak 100 Series III, often described as the ultimate bush plane, Daher launched the Kodiak 900 in 2022, with deliveries commencing in 2023. The Kodiak 900 features a 3.9-foot fuselage extension that increases cabin volume by 20%. Powered by a 900-shaft-horsepower Pratt & Whitney PT6A-140A engine, it achieves a cruise speed of 210 KTAS.

Daher highlights that the Kodiak 900 achieves a 9% reduction in specific fuel consumption compared to its competitors, significantly lowering the cost-per-seat-mile for commercial operators. To support this expansion, Daher recently invested in its Sandpoint, Idaho facility, adding a $2.7 million paint facility and duplicating final assembly stations to build both Kodiak models in parallel.

Speaking on the aircraft’s environmental and operational benefits in the company’s release, Nicolas Chabbert, CEO of Daher Aircraft, emphasized its unique market position:

“This is another answer to the commitment of enhancing sustainability and improving the carbon footprint of general aviation. The Kodiak 900 is in a category of its own: a highly versatile unpressurized utility turboprop airplane that can carry impressive payloads while cruising comfortably at 210 KTS in refined luxury.”

2025 Market Performance and Global Reach

Daher’s 2025 delivery figures, released in early 2026, reflect a stabilized market with strong geographic demand. The company delivered a total of 76 aircraft last year, comprising 51 TBMs (primarily the TBM 960) and 25 Kodiaks.

Delivery Milestones and Multi-Mission Growth

By the close of 2025, Daher’s cumulative deliveries reached 1,294 TBMs and 390 Kodiaks, with the global fleet accumulating approximately 3 million flight hours. Geographic dominance remains heavily skewed toward the Americas, which accounted for over 75% of TBM deliveries in 2025, followed by Europe at 23%. To further capitalize on emerging markets, Daher established a new operational hub in São Paulo, Brazil, in 2025.

Beyond private ownership, Daher is seeing significant growth in the multi-mission segment. In 2025, 30% of Kodiak deliveries were allocated for multi-mission roles, including North American law enforcement. Similarly, the TBM platform is being adapted for public service; the Canadian Conair Group currently utilizes TBM 960s as “birddog” aircraft to coordinate aerial firefighting drops over active wildfires.

Reflecting on the company’s operational resilience, Chabbert noted the dedication of the manufacturing teams:

“Our teams remained fully mobilized through the final days of 2025 with one clear priority: delivering for our customers. Their commitment highlighted our ability to stay focused on execution and customer promises, even as conditions evolved during the year.”

AirPro News analysis

Daher’s strategy of maintaining two highly distinct aircraft lines is proving to be a formidable moat in the single-engine turboprop market. By refusing to blend the TBM and Kodiak into a compromised middle-ground aircraft, Daher effectively captures both the high-net-worth owner-operator seeking jet-like speeds and the commercial/utility operator requiring rugged payload capacity.

The introduction of the TBM 980 is particularly notable for its integration of consumer-grade technology, such as Starlink, alongside advanced safety automation like Garmin’s HomeSafe. This reflects a broader aviation trend where reducing pilot workload and enhancing passenger connectivity are becoming just as critical as raw aerodynamic performance. Furthermore, the 9% fuel efficiency gain in the Kodiak 900 aligns perfectly with the general aviation sector’s increasing pressure to demonstrate sustainability without sacrificing utility.

Frequently Asked Questions

What is the newest aircraft in the TBM family?
The newest model is the TBM 980, launched in January 2026. It features Garmin G3000 PRIME avionics, Starlink connectivity, and the HomeSafe emergency autoland system.

Where are Daher aircraft manufactured?
Daher utilizes a dual-continent manufacturing footprint. The TBM family is built in Tarbes, France, while the Kodiak family is manufactured in Sandpoint, Idaho, in the United States.

How many aircraft did Daher deliver in 2025?
Daher delivered a total of 76 aircraft in 2025, consisting of 51 TBMs and 25 Kodiaks.

What is the difference between the Kodiak 100 and the Kodiak 900?
The Kodiak 100 is designed as a rugged, short-takeoff-and-landing (STOL) bush plane. The Kodiak 900, introduced in 2022, features a 3.9-foot longer fuselage, a more powerful 900-shp engine, and a faster cruise speed of 210 KTAS, making it better suited for higher-capacity commercial and utility operations.

Sources

Photo Credit: Daher

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Textron Aviation Debuts Citation Ascend and Longitude at AERO Friedrichshafen 2026

Textron Aviation announces the European debut of the Cessna Citation Ascend and Longitude jets at AERO Friedrichshafen 2026 in Germany.

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This article is based on an official press release from Textron Aviation Inc.

Textron Aviation to Showcase Citation Ascend and Longitude at AERO Friedrichshafen 2026

Textron Aviation Inc., a subsidiary of Textron Inc., has announced its aircraft lineup for the upcoming AERO Friedrichshafen trade show, scheduled for April 22–25, 2026, in Friedrichshafen, Germany. According to the company’s press release, the event will be headlined by the European show debut of the midsize Cessna Citation Ascend and the show debut of the super-midsize Cessna Citation Longitude.

The exhibition at Messe Friedrichshafen highlights Textron’s continued investment in the European business and general aviation market. We note that the manufacturers already maintains a substantial fleet presence in the region, and this showcase aims to present its latest advancements in passenger comfort and pilot-centric technology directly to European operators at Static Display SD-11.

Spotlight on the Citation Ascend and Longitude

The Citation Ascend Makes Its European Debut

The Citation Ascend represents the newest evolution in Cessna’s highly successful 560XL series, which includes the Excel, XLS, and XLS+ models. As detailed in the official release, the aircraft is designed to bring super-midsize comfort to the midsize jet category. A major selling point is its new flat-floor design, which replaces the dropped center aisle of previous models to offer passengers increased legroom and mobility.

Performance-wise, the Ascend is powered by dual Pratt & Whitney Canada PW545D engines equipped with Full Authority Digital Engine Control (FADEC). Textron states the aircraft offers a maximum cruise speed of 441 knots and a four-passenger range of 1,900 nautical miles, with a maximum estimated range of 2,100 nautical miles. The cabin is heavily modernized, boasting 19 standard USB-C ports, wireless smartphone charging at every main seat, electrically actuated window shades, and an unattended Honeywell RE100 [XL] Auxiliary Power Unit (APU) for ground climate control without running the main engines.

“We designed the Citation Ascend by listening to customers, then elevating an iconic platform to deliver more capability, comfort and confidence for every mission,” stated Lannie O’Bannion, Senior Vice President of Sales & Marketing at Textron Aviation.

The Super-Midsize Citation Longitude

Joining the Ascend is the Citation Longitude, currently Textron Aviation’s largest business jet. Competing in the super-midsize market, the Longitude is powered by two Honeywell HTF7700L turbofan engines, each producing 7,665 pounds of thrust. According to the manufacturer’s specifications, it boasts a transcontinental range of 3,500 nautical miles and a maximum cruise speed of 483 knots.

The Longitude accommodates up to 12 passengers and features a full-fuel payload of 1,600 pounds. Its six-foot stand-up, flat-floor cabin is marketed by Textron as the quietest in its class, achieved through exclusive soundproofing techniques. Both the Longitude and the Ascend utilize the Garmin G5000 flight deck, which includes fully integrated autothrottles, synthetic vision, and ultra-high-resolution displays to significantly reduce pilot workload.

A Comprehensive European Strategy

Broader Aircraft Lineup on Display

Beyond the flagship jets, Textron Aviation will showcase a diverse portfolio representing its Cessna, Beechcraft, and Pipistrel brands. The lineup includes the Cessna Citation M2 Gen2 light jet, the twin-engine Beechcraft King Air 260 turboprop, and the Cessna Grand Caravan EX utility turboprop, which will be displayed featuring a new Saddle Sport executive interior and a McCauley propeller.

Additionally, the Cessna Turbo Stationair HD piston aircraft and the Pipistrel Virus SW light aircraft will be present, demonstrating the breadth of Textron’s offerings from electric and light aircraft to heavy utility and business jets.

“At AERO Friedrichshafen, we’re proud to bring the Ascend to Europe and show how its modern avionics, refined cabin and proven performance are purpose-built for operators here and around the world,” O’Bannion added in the company release.

AirPro News analysis

Textron Aviation’s aggressive push at AERO Friedrichshafen 2026 underscores the strategic importance of the European market to the manufacturer. Based on the provided company data, Textron currently has more than 1,700 turbine aircraft based in Europe. This regional fleet includes over 850 Cessna Citation business jets, 450 Beechcraft King Air turboprops, and 175 Cessna Caravan turboprops.

The European debut of the Ascend is particularly significant for regional fleet modernization. The 560XL series is one of the most successful business jet families in history, Textron notes that a 560XL aircraft takes off or lands every two minutes globally. By bringing the Ascend directly to European buyers, we believe Textron is strategically positioning itself to capture operators looking to upgrade aging midsize fleets with modern, tech-heavy, and passenger-centric aircraft that prioritize both cabin comfort and pilot ease-of-use.

Frequently Asked Questions

When and where is AERO Friedrichshafen 2026?
The event takes place from April 22–25, 2026, at Messe Friedrichshafen in Friedrichshafen, Germany. Textron Aviation will be located at Static Display SD-11.

What is the range of the Cessna Citation Ascend?
According to Textron Aviation, the Ascend has a four-passenger range of 1,900 nautical miles, with a maximum estimated range of 2,100 nautical miles.

How many passengers can the Citation Longitude carry?
The super-midsize Citation Longitude can accommodate up to 12 passengers in its six-foot stand-up, flat-floor cabin.

Sources

Photo Credit: Textron

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