Arbitrator blocks NetJets sale of Columbus maintenance facility

An arbitrator has blocked NetJets from selling its maintenance base in Columbus, Ohio.

NetJets is the world’s largest private jet operator.

The decision took place earlier this month.

In a press release issued by Teamsters Local 284, the union said, the move guarantees “200 Teamsters jobs are safe at the Columbus facility.”

It said, “This decision comes as a direct result of Teamsters Local 284’s tireless efforts and a grievance filed by the union when the sale was announced.”

Local 284 President Mark Vandak classified the decision as “a major victory for hardworking Teamsters and their families.”

He said, “The International Union, Teamsters Airline Division, Local 284, and our members stood together and defended the job security protections we originally won in contract negotiations.”

Vandak continued, “NetJets needs to respect the arbitrator’s decision and its workforce, not threaten them and their families. The Teamsters want labor peace — but we will go to war to protect these members.”

According to the union, SA Aero Invest was the would-be buyer.

SA Aero Invest “had agreed to employ (workers) through a company it controlled, and (the company) would continue to work as subcontractors on NetJets aircraft in the company’s primary maintenance facility in Columbus.”

The union claimed that after it filed for arbitration, the unit of Berkshire Hathaway “threatened to involuntarily relocate workers to undisclosed locations if the Teamsters won the case, claiming it did not need or want maintenance workers in Columbus.”

NetJets Aviation President Patrick Gallagher tells Private Jet Card Comparisons:

 ‘NetJets and the International Brotherhood of Teamsters (IBT) recently completed an arbitration hearing following IBT’s grievance, which sought to stop the sale of the Columbus-based repair station. The arbitrator upheld IBT’s grievance, restricting the sale. Although NetJets believes the sale of the repair station would have been in the best interest of both the company and its repair station employees, we fully respect the arbitration process and are evaluating our options going forward. As always, our focus remains on providing the exceptional safety and service our customers expect and deserve.’

Gallagher says the repair station only made up a small part of its maintenance.

He adds, “For decades, NetJets has been relying on a network of maintenance vendors, including our trusted OEM partners. These partners handled approximately 97% of NetJets’ aircraft maintenance needs, whereas the Columbus-based repair station handled just 3% of that work.”

SA Aero Invest

Per its website, SA Aero Invest portfolio companies include the AeroCenter FBOs, Go Rentals, airport ground operations software NDX, and SAR Trilogy Management, which says it was “founded to invest in and partner with aviation, transport, logistics, and travel businesses.”

SA Aero Invest co-founder Michael Scheeringa has a long history in aviation, including as a vice president at US Airways from 1991 to 2004, CEO of Flight Options from 2004 to 2008, and then president of FBO network Signature Flight Support from 2009 to 2012, before moving to parent company BBA Aviation as president and CEO of Flight Support.

Sanjay Aggarwal, who co-founded SA Aero Invest with Scheeringa, was previously CEO of India-based airlines Spicejet and Kingfisher. Before that, he was COO at Flight Options, and before entering private aviation, he held financial planning roles at US Airways and Marriott International.

Last year, NetJets settled a year-long tussle with the union representing its pilots by agreeing to a 52.5% increase in compensation through 2029.