Management
Making HondaJet a Key Pillar of Honda’s Future – Honda Aircraft Company’s Management Strategy
POINTWhat you can learn from this article
- Under its second president, HACI is navigating a major shift towards business reform as it enters its next chapter
- Representing a hallmark of innovation in the U.S., the HondaJet Echelon is a testament to HACI’s pursuit of new challenges in its next chapter.
- Guided by the principles of the Honda Philosophy, Honda Aircraft Company delivers “the Joy and Freedom of Mobility in the Sky”
The development of an Aircraft Capable of Transcontinental Flights in the U.S. Unlocks New Business Opportunities
Honda Aircraft Company, LLC (HACI), Honda’s aircraft business subsidiary, was established in North Carolina in 2006. The HondaJet, a light business jet featuring the over-the-wing engine mount (OTWEM), has challenged conventional aviation norms and captivated many aviation enthusiasts.
Read more:Details of HACI’s origin and behind-the-scenes stories on the HondaJet Development (https://global.honda/en/stories/138-2407-HondaJet-HACI-column.html)
In 2022, Michimasa Fujino, HACI’s founding President and CEO, who drove the development of the HondaJet with his remarkable technical prowess and unwavering dedication, stepped down from his role to become a technical advisor. In 2024, he was honored with the Daniel Guggenheim Award by the American Institute of Aeronautics and Astronautics, making him the first Japanese recipient.
After Fujino’s retirement, Hideto Yamasaki took on the role of President and CEO of HACI. Given the highly specialized nature of the aviation business, HACI’s intricacies were not widely-known even within Honda. Now, as HACI embarks on its next chapter, it aims to enhance synergy with the broader Honda group, operating under the unified vision of “ONE Honda.”
Still being a newcomer in the aviation industry, HACI’s next milestone has been to make the HondaJet more reflective of Honda’s identity while establishing the Honda brand in the market.
Providing new value to the industry has always been HACI’s mission since entering the market. Following the unveiling of the HondaJet, HACI continued to meet customer expectations through three model changes over seven years, enhancing performance, comfort, and safety. The latest model, the HondaJet Elite II stands as the pinnacle of HACI’s efforts. In 2023, HACI announced the Hondajet Echelon, a new model that takes Honda’s mission of providing “the joy and freedom of mobility in the sky.”
The HondaJet Echelon offers new value that goes one step further than the previous HondaJet model. It has attracted attention as the next-generation business jet that not only enables transcontinental flight across the US with its highly efficient aerodynamic performance, but also contributes to CO2 reduction through improved fuel efficiency. Since the HondaJet Echelon was announced, HACI has already received over 400 letters of intent (LOIs).
Since announcing the concept, we have heard many customers ask, “Can an aircraft of this size really cross the U.S.?” Currently, over 70% of the business jet market is in the United States. The ability to make transcontinental flights without refueling is crucial for meeting market needs and aligns with Honda’s commitment to creating more environmentally conscious products.
HACI launched its Certified Pre-Owned aircraft business in June 2023, maximizing its unique position as an industry newcomer to foster innovative ideas and its superior technical capabilities to bring these ideas to life. Under this program, HACI repurchases HondaJets from owners ready to upgrade, then inspects, maintains, and resells them. Additionally, HACI is utilizing its aviation expertise to explore new challenges, such as integrating its technologies into F1 engines and next-generation eVTOL (electric vertical takeoff and landing) air mobility, leveraging on group synergies with Honda.
From Secret Project to Open Company
Upon being appointed as CEO of HACI, Yamasaki modestly remarked, “I feel a profound responsibility to further promote Honda’s philosophies and drive innovation in the aviation industry.”
When I arrived, I remember thinking how unique and different this company was compared to other Honda locations I have been in. With its wonderful facilities, exceptional products, an, most importantly, a great group of people, I thought it would be a shame if the rest of the world didn’t know about it!
Yamasaki, who has worked with colleagues from all over the world and have overcome various challenges, has used his knowledge to foster open communication. After emphasizing the importance of discussing and exchanging opinions regardless of age or position, he created a Waigaya [Honda’s unique corporate culture of open communication] area, removed the glass wall from the CEO’s office, and implemented an open office layout to encourage communication. By breaking down inter-departmental barriers, collaboration opportunities within the company have greatly increased, and HACI employees are now more attuned to opportunities for collaboration with other Honda divisions, such as motorcycle, automobile and marine operations. Yamasaki’s desire to “open up HACI 360 degrees for everyone to see” is also evident in company tours, allowing employees’ families to see their workspaces and even inside of their desk drawers. The goal is to maximize the potential of each and every employee by making not just the employees, but their families, feel proud to be associated with the company, ultimately fostering the creation of new value.
As the company transitioned from its early days, where strong leadership was essential for innovative technological development, the decision-making process shifted from a top-down to a bottom-up approach. Entering its next chapter focused on sales channel expansion, HACI recognized the need to pivot its management policy to emphasize the strength and growth of each individual employee. Concurrently, HACI established a framework for more transparent information sharing to build a refined structure for business expansion, incorporating cross-departmental meetings and increasing the frequency of in-person communication.
Aviation as a Key pillar of Honda – HACI’s new vision for the future
Since taking on his role, Yamasaki has emphasized the importance of valuing each and every employee. This practice aligns with Honda’s core philosophy of “Respect for the Individual.”
Coming from a sales background, I always loved to do everything myself. However, my first managerial position was in the secretarial office, an area in which I had no prior experience in. This situation forced me to focus on creating a system that enabled everyone to work comfortably, and it was then that my management style began to evolve.
In Japanese, Honda’s basic philosophy is written literally as “Respect for People,” but in English, it is translated as “Respect for the Individual.”
I appreciate how Honda translated this phrase into English, as it highlights the company’s dedication to valuing each and every one of its employees. I have embraced this philosophy, and my aim is to nurture the individuality, talent and potential of every team member. My mission at HACI is to enhance the overall strength and growth of both the organization and its people.
Respect for the individual: The founding spirit of Honda has been handed down through generations.
Instead of employees bringing multiple proposals for Yamasaki to decide on, employees are encouraged to propose their best ideas and collaborate with team members as they move forward. Yamasaki emphasizes that this approach is possible thanks to the dedication and legacy of the charismatic engineers who paved the way and the early supporters who established a trustworthy foundation for the company.
Two years have passed since Yamasaki stepped into the role. As HACI steadily moves toward expanding its business, what does the future hold for the company?
I envision the aviation business becoming a key pillar of Honda, so impactful that one day in the future, people will say “Honda *used* to be a car and motorcycle company.” That is my next dream.
Guided by Yamasaki’s vision, HACI’s journey of challenges and innovation will continue.
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The HondaJet made its debut at one of the largest air shows in Oshkosh in 2005, drawing a massive crowd. Not only was the HondaJet recognized as a groundbreaking aircraft, but Honda’s technological prowess and successful entry into the aviation industry were also acknowledged. This event marked a significant success story for HACI.