How will the recession affect corporate/charter?

[Capt1124]

A recession is beginning, and some marginal airlines have shut down. There will probably be more.

I have been through a recession in the cargo business, but not the corporate/charter business. Fuel prices haven't seemed to have had much effect, people with the money to fly this way seem to have just paid it.

At some point though I think corporate income has to be affected. How do you see this playing out? Slow hiring? No hiring? Layoffs? Or will it not have much effect?

 

[willNOTfly4free]

The only thing I noticed at my previous charter job was a higher percentage of business trips opposed to vacation trips. I had yet to see a slow down in flying as of last month when I left.

Some charter and corporate pilots might notice fewer golf clubs being taken on trips, but not much more than that. I do not foresee pax charter pilot layoffs and corporate flight department shut downs.

In my opinion, a full blown pt 91 corporate flight department does not run as tight of a budget as some 135 and 121 operators. Again, just my opinion, we corporate pilots also have more options available to control costs and are not as directly impacted by the increase in cost of a gallon of fuel.

As far as recession concerns, it depends on the industry segment a flight department is connected with. Health care and energy companies probably aren't hurting right now.

 

[blzr]

Also would depend on the type company you are with. If you are with an energy related company you may be getting more flying, conversely, if you are with a real-estate related company, you may not fare as well.

 

[Captain Morgan]

I was always under the impression that the first thing to go at a company was a flight department. I hope not, but that's just what I've been told. Good luck to all pilots in every corner of this industry, we're gonna need it!

CM

 

[Coool Hand Luke]

I was always under the impression that the first thing to go at a company was a flight department. I hope not, but that's just what I've been told. Good luck to all pilots in every corner of this industry, we're gonna need it!

CM

Well Morg, as with most of us here, I had the unfortunate experience of having a flight department (part 91) I worked for close it's doors. We were one of the last departments in the company to go. Ironically, after securing a part 135 job a few weeks later, I had the pleasure of flying our bankrupcy lawyers out to Delaware to liquidate our assets.

With this American Airlines debacle (and a few others) stranding pax left and right I'd say corporate departments (and the frax) are as safe as they have ever been, even with the price of gas.

 

[willNOTfly4free]

I was always under the impression that the first thing to go at a company was a flight department.

That's what the haters say.

A properly utilized corporate airplane is not a luxury. Rather it is an essential, time-saving, business-growing tool.

 

[DLS]

I just had the Pilatus PC 12 sold by the owner due to the economic decline in the US. The owner has 13 auto delearships in CA and AZ. I was the one man flight dept.

 

[400A]

In the past I have seen a slight reduction in Smaller Corporate departments and an actual small increase in 135 fleets. It sometimes forces those who are on the edge to put their aircraft into part time 135 service to help out in the slack times. The primary reduction will be in fleets that are over financed or the plane does not really meet their mission.

I am always careful in aircraft selection to not airplane myself out of a job. The Boss can afford anything he wants, but for our normal 1.4 hour stage length with 2-4 pax we do not need a huge aircraft. Our recent change from a 400A to a new Premier 1A makes me sleep much better at night. No Mx bills, and an average of $1000 less fuel on our normal round trip. No dispatch problems so far. Fun to fly too!

 

[Shag McNasty]

Any flight department can be adversely effected by a merger, acquisition, downsizing or change in top level management in good times and in bad. Poor economic performance is not neccessarily an indicator of when any of the above will occur. It's been said here before- The only thing that matters is whether the "Big Guy" wants to keep the airplane or not.

 

[psysicx]

I just had the Pilatus PC 12 sold by the owner due to the economic decline in the US. The owner has 13 auto delearships in CA and AZ. I was the one man flight dept.

Must be one of the american brands. Sucks bad.