Duncan Aviation Adjusting to Drop in Demand

 - January 28, 2009, 10:20 AM

Reductions in flying hours and cancellations of new aircraft orders have prompted Duncan Aviation, with major maintenance facilities in Lincoln, Neb., and Battle Creek, Mich., to “cut some production team members’ hours and implement pay cuts in all other positions,” according to a statement released by the company. “This is the first time in its 53-year history that the company has had to implement cutbacks of this nature.” The drop in flying activity is exerting “significant downward pressure in labor pricing,” said chairman Todd Duncan. In response, Duncan Aviation is “providing excellent prices to prospects to capture as much market share as possible. We will continue to watch and analyze the labor hours we have available with the hours we can sell. We are hopeful the reduced workweeks can level the discrepancy without forcing us to lay off team members. We care about our people and really don’t want to reduce the size of our workforce.” Additionally, Duncan is delaying construction of a new facility in Provo, Utah, that was scheduled to open late next year.