NetJets Cancels $2.6 Billion Hawker Beech Order
The fallout from cost-cutting at NetJets was felt at Hawker Beechcraft as the planemaker announced the giant fractional operator is canceling $2.6 billion worth of orders. The company didn't specify the types and numbers of aircraft but said it represented 90 percent of NetJets business over the next few years. The cancellation dropped Hawker Beechcraft's backlog by more than a third to $3.5 billion, according to the Wichita Eagle.
The Hawker Beechcraft announcement came about a month after NetJets announced the layoff of 495 pilots as demand shrank for its services. NetJets was founded about 25 years ago and became the model for shared ownership programs. It was bought by Warren Buffett's Berkshire Hathaway in the late 1990s and had grown constantly until recent economic woes put the brakes on that expansion.