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NetJets to layoff pilots

NetJets Inc. announced that it will lay off nearly 500 pilots as the new managements tries to deal with the prolonged economic downturn.

The company has more than 3,000 pilots worldwide and majority of these pilots are based in the United States (US).

The layoffs will take effect in 60 days. The expected number of layoffs is 495. However, CEO David Sokol says that the company will try to reduce the number of layoffs after several discussions with the pilot’s union. 

Pilots who are furloughed will get two months worth of pay and will be eligible for a call back in accordance with union rules.

NetJets is famous for pioneering the fractional-ownership model in the private jet industry, which allows owners to share a jet rather than taking on the cost of owning and operating one’s own private aircraft.

Despite the layoffs, the company will still be bigger than most competitors.

For months now, the company has been trying to avoid the layoffs. Last May, the union took on steps to avoid these layoffs and last June the company announced that its efforts were successful. In hindsight, Sokol says that the announcement was overly optimistic.

Source: Columbus Dispatch