The NetJets cancellations will reduce the airframer’s current backlog by about $2.6 billion. Excluding NetJets orders but including anticipated sales and order activity in the fourth quarter, Hawker Beechcraft predicts its backlog will be about $3.5 billion on December 31.

In addition to the sting from the NetJets cancellations, the company expects to post losses of between $725 million and $740 million this year, depending on whether it breaks even or incurs a loss of up to $15 million in the fourth quarter. Hawker Beechcraft expects fourth-quarter revenue of about $1.1 billion, bringing estimated full-year revenue to around $3.2 billion.

Losses were compounded by nonrecurring charges of about $678 million, though these were partially offset by gains of $352 million. Hawker Beechcraft said it continues to expect “depressed demand” for general aviation aircraft in the near term.

via NetJets Cancels $2.6B in Hawker Beechcraft Orders: AINonline.

The handover of the large-cabin business jet will coincide with the tenth anniversary of the region’s longest-running fractional ownership and block charter programme, which is operated under licence by Saudi Arabian company National Air Services.

NetJets Middle East operates a fleet of 17 business jets including Gulfstream G450s, Hawker 750/800XPs and Falcon 2000s. The Jeddah-based company admits the global recession has affected the factional and charter business throughout the region with the United Arab Emirates the worst hit.

“Our business is evenly split between the UAE, Saudi Arabia and Egypt,” says NetJets Middle East’s executive director for business development Graeme Deary. “While the Saudi and Egyptian markets have been less affected than the UAE by the financial crisis we have seen a drop in our business overall.”

Deary says NetJets has been forced to cancel and defer some of its orders until the market picks up. “We did have an order for 20 2000LXs, but because of the current situation we will only take one aircraft this year and one more in 2010. We will gauge the market before we commit to further deliveries,” says Deary.

The downturn has also prompted NetJets to expand it management offering as a means of boosting its charter fleet with minimum financial outlay. The company manages a Falcon 2000, GIV and an 800XP and is set to take delivery early next year of a G550.

via NetJets celebrates milestone with Falcon 2000LX delivery.

Connor will transition from his current role as senior vice president and chief procurement officer of MidAmerican Energy Holdings Company (MEHC), of which Sokol is chairman. Like NetJets, MEHC is a Berkshire Hathaway company.

Connor has been with the energy group since 1992. Last Thursday, NetJets Europe announced that it will cut its workforce by 6 percent, shedding about 100 positions.

All the jobs will be lost from operational functions at the company’s NetJets Transportes Aéreos operating company based in Lisbon. The company has said that the reduction will not compromise either safety or customer service and is part of a strategic business review to align the company with current market conditions.

via Sokol Stamps Mark on NetJets Europe: AIN Online.