Data on the U.S. fractional share industry show that last year was extremely challenging for the big four fractional operators–NetJets, Flexjet, Flight Options and CitationAir–and for smaller but healthier Avantair. Near the end of last year, in a financial results statement, Hawker Beechcraft revealed that
cancellations of orders by NetJets “represent approximately 90 percent of the company’s previously contracted backlog with NetJets.” NetJets is “not expected to provide [Hawker Beechcraft] any substantial revenue during 2009 or 2010…” the statement added. And sales activity at the fractionals supports a conclusion that the rapid growth that used to be the hallmark of the fractional industry has slowed to a crawl.
Based on data provided by Paris-based author and fractional industry researcher Pierre Parvaud, last year saw net negative additions to the combined fleets of the five companies, with -33 aircraft added during the entire year. Avantair was the only fractional operator to see a positive net change to its fleet last year, with one aircraft added. NetJets lost a net -14, Flexjet was even at zero net change, Flight Options was down -10 and CitationAir down -10.
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