HondaJet Operator Seeks 'Enhanced Operational Efficiency'

Private aviation company Volato Group, claiming to be the largest operator of HondaJets in the U.S., announced the removal of five leased aircraft from its fleet as part of its strategy to cut costs and enhance profitability -- while also dropping a number of pilots. 

The decision is supposedly in concert with the anticipated delivery of new HondaJets and the pace of demand growth. The company expects that it will see about $1.2 million in cost savings per quarter. Volato has made previous public statements that it is committed to instituting cost-saving actions. These include renegotiating aircraft leases, which in the case of these five aircraft were unsuccessful on terms suitable to Volato’s financial goals. Therefore the decision was made to end the less profitable leases as part of its strategy to optimize its fleet.

The company has also improved its utilization of aircraft by working closely with Honda Aircraft Company to increase the availability and efficiency of its fleet. This enables Volato to use fewer planes to meet its flight hour requirements, strengthening the company’s financial position as well as enhancing the revenue share for fractional owners.

Matt Liotta, CEO of Volato said, “We have always been transparent about the challenges we face, including delayed aircraft deliveries and the need to manage our fleet size prudently. Today’s decision is a continuation of our previously announced cost-saving measures and reflects our commitment to making strategic adjustments that position Volato for long-term success.”

FMI:  flyvolato.com