Dassault has made another wave of job cuts with more than 100 workers at its Little Rock, Arkansas completion centre the latest casualties of the economic crisis that has battered the business aviation industry.
“Dassault Falcon has laid off 111 workers in Little Rock,” the company says, while “another 42 workers have taken advantage of an ‘early-out’ programme, bringing the centre’s total workforce to 2,100 employees, about the same as it was in early 2008.”
John Rosanvallon, president and chief executive of the family-owned airframer, says: “While we recognise the unfortunate impact this decision has on our employees and their families, we must face the reality of today’s market conditions and the significant challenges they pose to our industry.”
This is the second round of job cuts in the USA this year for Dassault which laid off 79 employees at its sites in Teterboro, New Jersey, Little Rock and Wilmington, Delaware in April. The French airframer has however managed to avoid making the swingeing workforce cuts forced on most of its US competitors by introducing a number of measures at its facilities. These include: bringing outsourced manufacturing in-house; shutting production several days a month and encouraging some early retirement.
Like its US counterparts however, Dassault’s business jet orders have also begun to fall significantly – from 212 in 2007 to 115 last year. The airframer plans to deliver in 2009 between 80 and 90 Falcon types, an increase on the 72 handed over during previous 12 months, but fewer than the 10 aircraft a month it had been predicting for 2009 at the height of the market.
Meanwhile, another round of job cuts are being planned by fellow business aircraft manufacturer Cessna as it continues to grapple with the economic slump. In a recent letter to company employees Cessna chief executive Jack Pelton said: “Order cancellations have not stopped. The market for new aircraft remains frozen as customers wait to see if the recovery forecasted comes to fruition. In the aftermarket arena, it appears that the average daily utilisation continues to decline, taking it to significantly lower rates than we have seen in years. Even with a new commitment for lending support from America’s export bank, aircraft financing remains difficult for our customers.”
He added: “The reality of the market for the next few years is forcing us again to revise our production outlook. Regrettably, this will bring another reduction in the workforce and the potential of additional furloughs”. The company will not say how many jobs will be lost, but 60-day layoff notices are expected to be issued by 19 June.
Cessna has announced 6,900 job cuts to date and has reduced its workforce by 45% since November, when more than 15,000 employees were on its payroll.
As well as the layoffs, Cessna plans a four-week shutdown starting this month as aircraft production is slashed. Last year the airframer delivered 467 business jets and is planning to produce between 290 to 300 jets in 2009, although this tally could be adjusted downwards.
Source: Flight International
