Question-and-Answer Session
Operator
Thank you. (Operator Instructions). We will go first to Alex Hamilton with Jesup & Lamont.
Alex Hamilton - Jesup & Lamont Securities Corporation
Hi good morning.
Clayton Jones
Good morning.
Alex Hamilton - Jesup & Lamont Securities Corporation
Thank you for the color that you provided on the call. I guess the first question that I think is a lot of on... on a lot of minds of investors; can you talk about the weakness that you've seen in business jet? And I know you made a great reduction in your guidance there. Can you get us comfortable that there is not going to be a lot more headwinds on the business jet side?
Clayton Jones
Well, first relative to a color around it, I think it's been a fairly wide or reported mainly by the OEMs that have had public discussions early since about mid November that there was a precipitous shift, I think, as the economy worsen to the some... (ph) and I'll say worldwide relative to demand for business aviation. And you've seen OEMs be much more descriptive than I could to take actions relative to their workforce and relative to their production rates.
I would say from my perspective, we've seen a lot more impact at the lower end of the business jet market than the higher end. This is not a typical from previous cycles. And it is not unusual given the stresses that are on people, who typically buy mid to lower end business aviation versus the relative wealth of people that are able to buy the higher end. And so I think that trend is generally what we see.
Relative to the second part of your question, I would say I am not sure anybody can give you the ultimate assurance you need that in any part of this economy the headwinds are not going to get stronger. All I can say is that in the discussions we've had with all of our business jet OEMs, we've pretty much taken to heart as we all do... always do their forecast. We've added what is now become the infamous Kentucky vintage of our own feeling about where they're going to be. And then I would say in our guidance, and this is unique to us alone, and I think it's something we've not done in the past.
We put that additional $50 million of cushion in there, and our expectation of potential more bad news to come. Let me be quick to say that's not based on any insight information. I am not trying to suggest that is going to get that bad or that we've had any discussions with OEMs that would give us that impression. But clearly from the time I talked to you in November, where we were thinking 10 to $20 million cushion is enough, now you see what we've done and taken $180 million out. Who could have guess that? I doubt anybody could have.
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