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CitationAir Ceases Sales of Fractional Jet Shares

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gret

Well-known member
Joined
Nov 14, 2007
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AIN Alerts

CitationAir has stopped selling fractional shares in new aircraft and ceased renewals for current fractional-share customers, the Cessna Aircraft subsidiary confirmed to AIN yesterday. Effective last week, “CitationAir will be streamlining our offerings to deliver those products in our portfolio that have demonstrated the greatest customer demand,” CitationAir president and CEO William Schultz wrote in an email sent to employees. “As a result, we are suspending sales of our Jet Share and Jet Access products and refocusing our efforts on our Jet Card and Jet Management lines of business.” Jet Share was the company’s traditional fractional share program; Jet Access was a jet membership program. Schultz said CitationAir will continue to honor existing contracts until they expire “and then will buy back the shares in accordance with our customers’ agreements.” Customers who want to stay with CitationAir would then need to transition to a jet card product, he noted. Analyzing the move, business aviation consultant Brian Foley said, “There are now fewer borders between fractional, aircraft management, jet cards and charter.” CitationAir “simply morphed into what the market wants…a successful branded charter/management model,” he said. Fractional consultant Michael Riegel of Fractional Insider views the move quite differently: “Card ownership cannot survive alone” since it is too “cost prohibitive.” He believes this transition will position Cessna potentially “to shut the business down, and quickly, within a couple of years.”
 
AIN Alerts

CitationAir has stopped selling fractional shares in new aircraft and ceased renewals for current fractional-share customers, the Cessna Aircraft subsidiary confirmed to AIN yesterday. Effective last week, “CitationAir will be streamlining our offerings to deliver those products in our portfolio that have demonstrated the greatest customer demand,” CitationAir president and CEO William Schultz wrote in an email sent to employees. “As a result, we are suspending sales of our Jet Share and Jet Access products and refocusing our efforts on our Jet Card and Jet Management lines of business.” Jet Share was the company’s traditional fractional share program; Jet Access was a jet membership program. Schultz said CitationAir will continue to honor existing contracts until they expire “and then will buy back the shares in accordance with our customers’ agreements.” Customers who want to stay with CitationAir would then need to transition to a jet card product, he noted. Analyzing the move, business aviation consultant Brian Foley said, “There are now fewer borders between fractional, aircraft management, jet cards and charter.” CitationAir “simply morphed into what the market wants…a successful branded charter/management model,” he said. Fractional consultant Michael Riegel of Fractional Insider views the move quite differently: “Card ownership cannot survive alone” since it is too “cost prohibitive.” He believes this transition will position Cessna potentially “to shut the business down, and quickly, within a couple of years.”

$64K questions: how will that impact jobs at CS and over what time period? Will continuing to offer the jet card protect some jobs (charter vs. fractional)? Is it just morphing to an XOJet model? Seems to be working for XOJet....
 
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100% accurate! Waiting to see the results on the fleet and employees! Not a good time to be a part of CitationAir!
 
Management makes it sound like they are making a smart business decision because the other segment of your business is doing "so" well..... But yet everyone you hear from is expecting mass layoffs.....and shrinkage.

Do you all feel that the goose is cooked in regards to the business ever growing doing just charter/ management? It doesn't seem like the pilots feel the charter portion of the business is going to be the savior...
 
Maybe after th buyback of shares, CA makes its "core fleet" from low priced units Cessna (the parent) takes in trade to sell new planes. A little refurbishing, maintenance at cost, a branded charter operation, may make a profitable operation.
 
Shut down plans for 2012 are posted on our union site. As I don't know if that comes from anything remotely close to official, I won't post here, but would ask if any CA pilots have heard anything official. A sad situation at best. Good luck to all affected.
 
Shut down plans for 2012 are posted on our union site. As I don't know if that comes from anything remotely close to official, I won't post here, but would ask if any CA pilots have heard anything official. A sad situation at best. Good luck to all affected.

Obviously not from CS, but I think "shutdown plans" are wrong. I've got a friend there who isn't expecting to lose his job in 2012.. He's around a 6-7 year PIC I believe. Think I heard 30 planes for 2012.

Hopefully no one at CS is telling their co-workers to suck it up and pay their dues. Or they shouldn't have been hired in the first place! (not directed at you P. Just a general sarcastic comment:p)

Wait I thought Luthi said every other fractional was doing spectacular?
 

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