Business Aviation Industry Hits Turbulence
DENVER --
The business aviation industry isn't only hitting turbulence in the air these days, but also on the ground. It is going through the worst downturn since the days following the Sept. 11, 2001 attacks.
"It basically follows the rest of the economy," said Rich Bjelkevig, president of Mountain Aviation in Broomfield.
Business at Mountain Aviation is down 35 percent so far this year and the downturn is only expected to continue.
Bjelkevig says part of the problem is a misconception about the industry, which is estimated to be responsible for a million jobs nationwide in manufacturing and services.
Recently, when CEOs from the top American Automakers made a trip to Washington to ask for financial bailouts, they were heavily criticized for taking corporate jets to the nation's capital.
Bjelkevig said that really put a drag on his industry's image.
"The airplane to us is what a pickup is to a contractor," Bjelkevig said. "It's a tool, not a luxury tool, but a tool to get you there and back again."
In fact, Bjelkevig says corporate jets add to the productivity of top management and any employee who flies.
Mountain Aviation has about a dozen aircraft at its disposal at Rocky Mountain Metropolitan Airport. Some aren't flying as often as they used to. Oil and gas companies that used to require a lot of travel are now cutting back. The reduction in business forced Bjelkevig to make some changes in staffing and schedules.
The downturn is also having a trickle down effect on the airport Mountain Aviation operates out of. When the company isn’t buying fuel and flying, it hurts the airport's bottom line. The airport relies heavily on fuel purchases for revenue.
"When Mountain Aviation is not successful, we're not successful," said Kenneth Maenpa, Manager of Rocky Mountain Metropolitan Airport. "It's our lifeline; that’s what keeps the airport operating and that's what keeps us here."
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