American Airlines has entered negotiations to sell its Executive Airlines subsidiary to St. John’s, Antigua-based Dash 8 operator Caribbean Star. Executive Airlines, a division of American Eagle based in San Juan, Puerto Rico, became the subject of divestiture speculation when American failed to secure relief from a clause in its pilot contract that requires it to freeze its regional affiliates’ ASMs in the event of mainline furloughs.
Aviation International News » March 2002
Despite the continuing economic downturn and the aftereffects of September 11, the number of turbine business airplanes delivered last year surpassed the tally for 2000. According to figures compiled by AIN and the General Aviation Manufacturers Association, airframers worldwide delivered 790 business jets and 332 business turboprops last year, compared with 758 jets and 267 turboprops in 2000.
As companies merge, expand, downsize, change top executives or declare bankruptcy, their flight departments are often significantly affected. In the past several weeks, four major companies with flight departments have filed for protection under Chapter 11. More than 20 corporate jets were operated by these four companies, and none is currently more visible than Enron.
Raytheon Aircraft, which lost millions of dollars last year, has placed “on hold” further development of the Hawker 450, a light midsize business jet that had been tentatively scheduled to enter service in 2006. The company will decide in the third quarter of this year whether to resume, postpone or cancel the project.
When the going gets tough, the tough launch airplane programs. Banking on better times beyond the currently cloudy economy, and despite depressed business-airplane shipments by the Canadian airframer last year, Bombardier has formally launched the Global 5000 after first introducing the program last October.
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