Private jet operator NetJets to lay off close to 500 pilots

Columbus, Ohio-based NetJets, a wholly-owned subsidiary of Berkshire Hathaway Inc., announced late last week that it plans to lay off 495 out of 3,000 pilots currently employed by the company. NetJets is the pioneer of fractional-ownership of small business jets which allows for partial ownership of an aircraft that is shared with other companies. The final number of laid off pilots may be slightly lower, according to Chairman and CEO David Sokol, after upcoming negotiations with the plot's union.

NetJets will remain many times larger than its nearest competitor even after the pilot reductions take place around the first of the year. The company had said back in June that it would not lay off pilots, but in hindsight Sokol said that statement was probably "overly optimistic." About 50 of the 495 pilots live in the Columbus area. The company's pilots are positioned around the globe in order to accommodate requests for private jet charters from many countries.

The previous chairman and CEO of NetJets resigned abruptly in August soon after the company reported a quarterly loss of $253 million. The company plans to pay two months' severance to those furloughed and they will all remain eligible for call-back should business conditions improve.