Sources: Aviation Layoffs Could Reach 3,000

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Reporter: Chris Frank
Email Address: chris.frank@kake.com

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The planemakers are keeping quiet about exactly how many layoffs there will be. Sources, however, say the number could reach 3,000 between Cessna and Hawker Beechcraft.

Six months ago, Wichita planemakers were having to figure out how to fit new plane orders into their already full production schedules. Now, they are trying to figure out how to adjust to customers who can no longer take delivery or are trying to defer their deliveries months and years out.

"The business aviation industry today has decreased faster than any other time in its history, as far as sales activity," said Brian Foley, aviation analyst.

The biggest buyers for corporate jets over the past decade have been fractional ownership companies. The largest of those companies is NetJets, which is owned by Berkshire Hathaway, the Warren Buffet Company.

Sources say only a few months ago, NetJets was ready to receive more than 40 Citation jets this year. With the market collapse, they have put the brakes on deliveries and might only take 10 or fewer Citations.

Foley says he wouldn't be surprised if some planemakers shut down for periods of time this year. No one has said that would happen, but it's happened as recently as 2003 when Cessna shut down production for several weeks during the downturn.

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Comments are posted from viewers like you and do not always reflect the views of this station.

Posted by: me Location: wichita on Jan 8, 2009 at 12:15 PM
I think it is time to look at how much outsourcing REALLY costs us. Not just in the lost jobs that we could use right now.

Posted by: me Location: wichita on Jan 8, 2009 at 12:13 PM
Is it possible that some of the aircraft employment problems can be because of the suppliers ability to keep up with parts demand? If so, could outsourcing these jobs cost us more in labor/lost labor than the savings are worth? Could it be that even when parts arrive that they are inadequate,and needing to be reordered, resulting in a slow down of the plane line and ultimately costing the Companies in late delivery charges? Again, could the cost of outsourcing be higher than the savings of the individual parts? I do not understand how inadequate parts, no parts, shipping costs of parts... could be worth the outsourcing savings. The Cost must be being offset by incentives from the Federal Government to outsource. Even so...?

Posted by: reality sux Location: wichita on Jan 8, 2009 at 08:17 AM
hawker worker - they knew what they were doing with all the mandatory overtime. they are bumping up inventory while they still have the employees to make that happen. that way they can still make a profit even after they lay off hundreds if not thousands of workers. it's a dog eat dog world my friend.... and it's very ugly.

Posted by: Hawker worker Location: Salina on Jan 8, 2009 at 03:41 AM
It doesn't make sense why Hawker would be laying off in areas when they had 2 months mandatory overtime 21 days on 10hr days and still have departments on that overtime now. If they plan that and it affects salina, might as well shut salina down

Posted by: Jerky 'Ta Location: Maize on Jan 7, 2009 at 07:40 PM
I didn't realize Wichita had an aircraft industry?

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