On Friday, Avantair president and COO David Haslett updated customers on the current status at the shut down fractional provider and said that a plan to resuscitate the Clearwater, Fla.-based company is being developed. He also assured shareowners that their aircraft are still insured and “on the ground” at maintenance bases.
Charter and Fractional » Fractional
News and issues concerning the fractional-ownership industry and markets, including company announcements, regulations, new developments and labor issues.
Fractional provider Avantair shut down today and furloughed employees as it “seeks alternative financing arrangements that it hopes will enable it to resume operations as quickly and efficiently as possible,” according to a June 26 8-K SEC filing.
Clearwater, Fla.-based Piaggio Avanti fractional provider Avantair shut down yesterday and furloughed employees as it “seeks alternative financing arrangements that it hopes will enable it to resume operations as quickly and efficiently as possible,” according to an 8-K SEC filing. Employees were also notified that “the company will not be in a position to fund payroll on June 28,” meaning they will not be paid for time worked since June 8.
Clearwater, Fla.-based Piaggio Avanti fractional provider Avantair shut down today and furloughed employees as it “seeks alternative financing arrangements that it hopes will enable it to resume operations as quickly and efficiently as possible,” according to a June 26 8-K SEC filing. The company also received notice on Monday of a customer class-action lawsuit and is in breach of a lease agreement for its six core airplanes, with their repossession by lessors a possibility.
After weathering a three-week voluntary grounding stemming from a maintenance issue late last year, operations at Piaggio Avanti fractional provider Avantair have been pretty much normal. That is until last Thursday, when an anonymous call to the Clearwater, Fla.-based company’s whistleblower hotline initiated the grounding of its fleet again.
Million Air Dallas, which took delivery of a Gulfstream G650 on May 20, is now the first operator to have one of these ultra-long-range jets available for charter. Its wide-cabin jet is configured for up to 13 passengers and has a private crew-rest area to take advantage of the aircraft’s 7,000-nm range. In preparation for delivery of the new aircraft, Million Air Dallas built a new charter passenger terminal at Addison Airport, as well as a new 40,000-sq-ft hangar that houses the G650.
A legal battle is under way between the nation’s largest private aviation provider and two of the major FBO chains over whether NetJets’ aircraft charter and management arm, Executive Jet Management, can require the chains to provide fuel discounts to aircraft owners and operators whose aircraft are not part of the company’s fully managed fleet.
Bombardier’s Flexjet subsidiary reported a strong first quarter, led by growth in new buyers as well as higher levels of activity by existing fractional-share, jet card and lease customers. In the first quarter, new business was up 83 percent, fractional share sales up 108 percent and jet card sales up 48 percent over the same period last year. “Our flying is not only up with all the new sales,” said Flexjet president Deanna White, “but also our existing customers are ramping up their flying time.
Fractional provider Bombardier Flexjet reported an 83-percent rise in new business growth in the first quarter versus a year ago. During this period, its fractional sales reportedly climbed by 108 percent, while new jet card sales rose by 48 percent. During the Easter travel weekend, Flexjet recorded flying hours at levels not seen since the height of the market in 2007. As a result, Flexjet said it is currently hiring pilots to satisfy the increasing demand.
NetJets Europe plans to operate Embraer Phenom 300s by early 2014, the two companies announced today at EBACE. Holding a firm order for 50 of the specially outfitted “Signature Series” light jets, NetJets took its first delivery on May 1 for its U.S. operations.