Originally reported in AIN
CitationShares and NetJets, two of the largest players in the Fractional Aircraft market, have announced staff reductions and voluntary leaves-of-absence and reduced scheduling to meet the declining owner demand levels.
A voluntary furlough-mitigation program collaboratively formed in April by NetJets and its pilot union, the NetJets Association of Shared Aircraft Pilots (NJASAP), has averted layoffs and furloughs. “Through innovative and purely voluntary measures, NetJets has been able to align our pilot and other areas of our workforce to match our current owner demand levels,” NetJets chairman and CEO Richard Santulli told AIN.
“The voluntary measure process succeeded because of strong employee participation and significant collaboration with [NJASAP]. Because of the success of voluntary measures, we are not planning at this time to right-size our workforce through layoffs or furloughs.
Under the program, union members could choose an early-out option or short- or long-term leaves of absence. Among other solutions offered were voluntary reduced scheduling and a temporary construct allowing crewmembers to receive time off in lieu of pay.
While on Tuesday July 2, fractional-share operator CitationShares laid off 41 office staff and furloughed 52 pilots, according to CEO Steve O’Neill, “to match both the flight activity with staffing levels as well as operating revenue with expenses. We had too much capacity both inside and outside the office for current and projected levels of business.”
He further indicated that the decline in selling and flight activity has begun to level off. “Customers exiting for financial reasons have all but stopped,” O’Neill said. “Now we feel like we’re in a healthy place.” The reduction in staffing levels comprises about 16 percent of CitationShares employees.
