Over 300 Throughout Company Will Be Let Go
In response to the ailing economy
and credit crisis -- "as well as political and media grandstanding
against the business aviation industry" -- this week Duncan
Aviation implemented a reduction in its nationwide work force, the
first in its 53-year history.
ANN first reported on the impending layoffs early
Monday.
The reduction in force affects nearly every single department at
Duncan Aviation and impacts 304 positions, including 170 at its
Lincoln, NE facility; 122 at its Battle Creek and Kalamazoo, MI
locations; and 12 in the company’s nationwide network of
smaller satellite avionics and engine locations throughout the
United States. Affected workers were told of the news Monday
afternoon.
"It has been a tough, emotional time for everyone with
connections to Duncan Aviation," said company Chairman Todd Duncan.
"We have always been proud of being able to weather tough times
with our work force intact. This recession, however, has been
drastically different for our industry from any other recession we
have seen. The sharp decline in flying by companies that own
business aircraft combined with global business closings,
reductions in spending and political grandstanding against our very
livelihoods has created an environment that has left us no choice
but to downsize."
Duncan states senior managers at the company have spent the last
two months looking hard at declining business projections, areas to
cut costs and even implementing reduced hours and wage cuts from
5-25% for team members companywide in an effort to hold layoffs at
bay.
It quickly became apparent, however, that the industry has been
severely affected and will be significantly down for most if not
all of 2009, leaving Duncan Aviation no choice but to "right-size"
our employee base with anticipated work levels, Duncan
continues.
"From the moment we made the decision to move forward with
layoffs, we have been very mindful about conducting them in the
most respectful and dignified way possible. We want to help those
employees have a successful transition out of the company and hope
that, one day, we will be able to hire them back with Duncan
Aviation," said company President Aaron Hilkemann.
Contradicting earlier reports, Hilkemann added the company has
not altered its planned expansion into Provo, UT "at this
time."