Wednesday, May 07, 2008

Lacking growth capital, DayJet downsizes work force

DayJet Eclipse 500 VLJ aircraftYesterday, Ed Iacobucci, CEO of DayJet, announced the scaling back of the company's growth plan for 2008, including a reduction of its work force. Iacobucci attributed the need for cutbacks to "external economic factors." DayJet, based in Boca Raton, FL, operates a fleet of Eclipse 500 very light jets .

The company, which has been operating as a per-seat on-demand air taxi carrier since October of 2007, expected an additional investment of about $40 million "growth capital" in the first quarter of 2008 in order to open new markets. The new capital has not materialized. "We hired and trained a number of employees in anticipation of future growth and always planned for additional capital investment at this stage, ” said Iacobucci.

There is no plan to reduce the existing service area in the Southeast U.S. at this time, according to Iacobucci. "When the capital markets recover, then we would expect to resume the growth forecast in our original plan,” he said.

[Photo Source]