Cessna stops selling fractional shares through CitationAir

CitationAir, the fractional aircraft subsidiary of Cessna,
is no longer selling shares in aircraft.  Owners of shares in aircraft will continue to
be supported and it will continue to sell jet cards and aircraft management.

“CitationAir will be streamlining our offerings to deliver
those products in our portfolio which have demonstrated the greatest customer
demand.  As a result, we are suspending
sales of our Jet Share and Jet Access products and refocusing our efforts on our
popular Jet Card and Jet Management lines of business,” said William Schultz,
CEO and president, CitationAir in a statement. “We have never wavered in our
commitment to our customers, and we remain as committed as ever to providing
them with superior products and services today and in the future.”

CitationAir will buy owners out when their fractional
contracts expire.

One private equity source says Cessna had looked at selling
the company in 2011. “CitationAir continues to be a vital business unit of
Cessna Aircraft Company,” said Shultz in the statement.

CitationAir is the fourth largest fractional aircraft company,
after NetJets, Flight Options and Bombardier’s FlexJet.

CitationShares (it was re-named in 2010) was started as a
joint-venture between Cessna and TAG Aviation Holding in 2000. At the start both
parties owned half but Cessna increased its share over the first 10 years and
bought the remaining 8% it did not own in February 2010.

In 2009 CitationAir placed 85 pilots on furlough. In
September 2009 it invited all of them to return to work. Some 53 came back to the
company bringing its total number of pilots to 334.