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There has long been talk of recovery from the downturn, but this recovery is painfully slow in Europe and North America. Expanding to other markets like Asia and the Middle East is a given, but lately South America seems to be showing promise.
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In late July, Honda unveiled its new HondaJet at EAA AirVenture Oshkosh 2010, and it doesn’t lack in technological splendor.
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NetJets has closed its U.S. offices outside of Ohio and the process of relocating them to Ohio began on July 1st. The company has put $21 million dollars toward expanding their complex in Columbus to accommodate the move.
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2009 was a terrible year for the aviation sector, and NetJets in particular, which saw its revenues drop by $1.465 billion. However, the fractional provider requires no further downsizing and its debt has been reduced by half a billion dollars under CEO David Sokol.
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According to several studies and papers, including research on great white pelicans, planes flying in a V-shaped formation could potentially save fuel and cut greenhouse gases.
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Following NetJets’ announcement in late November of furloughs starting January 15th, the company has been forced to cancel large orders of aircraft and concentrate on the more burgeoning areas of their business. At the same time, signs of the end of the recession coupled with a loyal following clash with no such signs for the fractional ownership business itself.
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NetJets recently announced the decision to furlough close to 500 pilots starting January 15th of next year due to economic circumstances. Up to 495 will be furloughed in North America and at least 5 from NetJets International.
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To help with surviving in the current economic environment, Cessna has taken control of 92% of CitationShares while Tag Aviation now only owns the remaining 8%, which Cessna is also eyeing. As a result, the company has rebranded itself as “CitationAir by Cessna.” But is the imminent demise of fractional ownership really only a recent development?
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Adam Webster and Scott Russell, co-founders of Marcil Technology Group and its subsidiaries, RSVPair and Fractional Forum, have launched the Jet Owner Group, dedicated to “helping aircraft owners better understand their investments, the marketplace and the landscape of management and operations.”
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Jet Republic, NetJets’ biggest fractional competitor, has suspended all its activities, in turn affecting Bombardier’s Learjet production schedule. NetJets’ slowdown is having similar effects on Hawker Beechcraft and losing many of its clients to private air charter provider International Air Charter (IAC). Meanwhile, the construction of the first private jet facility in China is underway.
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