The slowdown in the private jet industry has doomed, at least temporarily, Cessna's most promising new plane. Cessna has announced drastic measures to trim expenses including laying off an additional 2,300 people,lengthening the summer production stoppage, suspending its Citation Columbus program and closing its Bend, Oregon plant. The Columbus program was still in the developmental stages but it would have been the fastest and largest jet in the Cessna fleet with a range of 4,000 nautical miles. It was supposed to be ready in 2014 and state and local governments in Kansas had allotted millions in incentives to entice Cessna to build the production plant in the state. The Wichita Eagle reports that the money will be repaid through increased payroll taxes.

The private jet industry has shrunk dramatically in the wake of several key factors, last summer's fuel price spike, the recession, and a public outcry that has led corporate jet users to decrease their reliance on private jet travel. While last year Cessna planned to deliver around 500 in 2009, it is now aiming at producing around 300 planes. The company has received a flood of cancellations for planes that were slated to be delivered over the next couple of years.

The parent company of Gulfsteam jets, General Dynamics announced this week that it would be laying off 1,200 workers nationwide. The workers will be a mix of full-time employees and contractors. More workers will also be put on an unpaid leave for at least a month this summer as Gulfstream cuts plane production. With corporations selling their private jets (Starbucks just put another plane on the market this week) and canceling orders for future planes, the industry has hit hard times. The world's wealthiest people have seen their fortunes dramatically reduced within the past year and are feeling especially frugal. The private plane has rapidly become a symbol of greed and extravagance but the lavish spending habits of a few individuals have fueled entire industries which are now hurting.

Eclipse Aviation has hit another speed bump in its long journey. The company furloughed 800 of its 850 employees this week to save money. The company is running out of funds to pay employees as it tries to complete a bankruptcy sale with Luxembourg-based ETIRC Aviation. Just a limited crew will be retained until the deal closes. KRQUE reported that some people left the southeast Albuquerque plant where Eclipse makes their jets carrying family pictures and documents just in case what should be a short furlough turns out to be a bit longer. A bankruptcy court approved the sale of Eclipse assets to ETIRC last month but finding the $188 million to finance the deal is no easy task in this tough market. Because there is no solid closing date for the sale there's no real reason to keep making jets. Around 30 jets in progress are inside the plant.

This latest turn in the Eclipse saga comes just as there is some good news for private plane buyers, Congress approved a tax break in the stimulus package that will help businesses buy their own planes. An incentive reduces the upfront tax bill for businesses buying significant assets such as planes.

The car companies may have gotten in trouble for their corporate jets, but as the AP reports, private jets are still flying for Wall Street's firms. They report that six financial firms that received billions in bailout dollars haven't sold off their jets. In fact they are still in use to carry executives to company events and sometimes personal trips. In many of these cases, the CEO is required to use a private jet for security reasons. AIG has seven planes but a spokesman reports they are being used sparingly. The company sold two jets earlier this year and is selling or canceling orders for four others. Citigroup's aircraft are being used a by a few executives but the execs are "encouraged to fly commercial." Morgan Stanley has two jets. JP Morgan owns four Gulfstream jets including a a 2007 ultra-long range flagship G550 model, a plane that sells for around $47.5 million. Bank of America has nine planes including four Gulfstreams. Wells Fargo owns a single jet that is strictly for business use.

While SEC rules require that publicly held companies disclose executives' personal use of corporate aircraft, the line between personal use and business use can often be hard to determine. Overall, companies are cutting back on the use of the jets for any reason that can seem frivolous. They haven't had to travel to Washington to beg for money yet but if they do, likely they'll leave the fleet at home.

If you are shopping for a jet, the picture above is from a used Gulfstream GIV-SP listed at $25.95 million.

Italian aircraft carrier Alitalia has a resource some other carriers don't in order to help raise funds. Alitalia is currently looking into selling its prized modern art collection to help to reduce debts, as it prepares for a relaunch next month under new ownership. The collection of over 200 pieces includes works by Salvador Dali, Giorgio De Chirico and Giacomo Balla, as well as sculptures by Giacomo Manzu and Mario Ceroli. The airline began its collection in the 1950s and the pieces are now at Alitalia offices in Rome, Milan, Turin and New York, or in storage. Christie's is reportedly making a valuation of 193 of its works of art and is said to be choosing 50 works of the greatest value and interest to be auctioned off. The news comes just after German airline Lufthansa launched "Lufthansa Italia", a new airline based at Milan Malpensa, to serve main European cities, including London.

There is some good news amidst the bad news for private jet companies. Recently, as CNN reports, Hawker Beechcraft told employees it would cut nearly 500 jobs and Cessna has also planned cuts. But Bombardier Aerospace has said that plans for its new Learjet 85 assembly line will go forward. Bombardier spokesman Leo Knaapen has said that the the company is hiring 500- 700 people to work at the Wichita plant on Learjet 85. Bombardier spokesman Leo Knaapen cites the company's more international focus as a reason for its success at a time when others are faltering. The company has said they are conscious of the financial crisis but for the moment they are not predicting any layoffs at their Wichita plant.

Executive Jet Charters is a Fort Lauderdale based charter service that will take you anywhere in their luxury jets without all those pesky other people.

They have three planes in their fleet, viewable here, which are newly bookable up to a month in advance. Be sure to click on "more pictures" to get a look at the gorgeous interiors.

In this troubled economy, EJC is making a concerted effort to offer the best possible prices and to specialize each flight for the client to make them as comfortable as possible. With the advance bookings, they are able to streamline their process and keep prices even lower.

Their travel experts are available 24 hours a day and cater to both business and private requests. Call them at 954-449-2501 to see how much it would cost to fly to Argentina tomorrow.

Think the airline industry has it tough in the U.S.? Looks like it's no better in Russia. The Russian news agency ITAR-TASS has reported that the Russian aviation industry is in deep trouble and some airlines are facing potential bankruptcy. The reason is the same one that is plaguing the U.S. airlines, jet fuel prices. The cost of aviation fuel in Russia has risen over 70% and even though Russia has its own vast oil deposits, kerosene prices in Moscow are some 5-6% higher than in Europe. Some are predicting that as many as 50% of Russian airlines could go under if conditions don't improve.

In Russia the heaviest demand for air tickets is during the summer peak, and demand falls considerably in the low season October-February, and so some air carriers may be short of revenues to pay to fuel suppliers. Smaller airlines are more vulnerable. Yevgeny Ostrovsky, the director general of a trade house supplying jet fuel to Russian airports, predicts that only five airlines, Aeroflot, S7, Rossiya, Transaero, and YUTair, are likely to survive due to their strong partnership with the government or with large corporations. Even Aeroflot, the largest carrier, has seen the price of jet fuel cut down its profit margin from the 9% it posted in 2006 and 2007 to 3% this year to 2% in 2009.

Ugh, airline food. The growing popularity of private jets and jet charters is changing that stereotype, though, as those who can afford it are not only flying, but also eating, in style. Jet-Chef.com is a service for jet owners, pilots, brokers, flight attendants, etc., and offers access to some of the world's best chefs, caterers, and suppliers for the ultimate in in-flight dining. The service comes in the form of a website directory that makes searching by city, state, or airport and getting in touch with high-class gourmet chef and catering services easy and convenient.

Currently Jet Chef is only available in the U.S., but at the rate the private jet industry is growing they expect to be going international in the near future.

The press for eco-efficient air flight is really gearing up. Last week, Virgin Atlantic tested a flight on coconut oil. Now Aero-News Network reports that an Airbus A320 test aircraft has performed the first test flight powered by the International Aero Engines' new SelectOne standard engine. This engine still uses traditional fuel but it is a new version of the V2500 engine that is more fuel-efficient with lower CO2 emissions. The engine will be available for the A319, A320 and A321. The engine will reduce fuel burn by 1 per cent (along with a corresponding reduction in CO2 emissions) and will also improve time-on-wing by 20 per cent and require less maintenance. Unlike other projects, for more fuel-efficient flight, this one will be pressed into service by the end of the year.

Those Google guys must really be into over-sized private jets, because they're at it again! Apparently having 3 private jets, including a Boeing 767, with landing rights on NASA's Moffett Airfield wasn't good enough for them as they've now added a Boeing 757 to their ever-growing fleet.

Although smaller than the 767 they already have, obviously the 757 is still a large aircraft. Why does Google need so much in the way of wings? Who knows really, but a move like this sure is to get people talking.

For kids who have parents that can afford it, long gone are the days of riding to summer camp on a hot loud bus that smells like peanut butter and sweat. Many families are instead going the route of private jet flights, thanks in part to charter company Revolution Air assigning more than 20 jets to just that purpose this month. Costing about $8,000 per flight, most families choose it to both save time and make for a special experience. The designated jets have specialized menus featuring chicken fingers and ice cream, and it's such a treat for some they're opting to fly instead of taking a bus ride of almost the same length!

Would you fly all the way to Peru just to turn around and fly home in order to keep your frequent-flier status? USA Today has an article on "mileage runs" which are end-of-the-year jaunts in order to have enough miles for status upgrades. According to the article, American lets some AAdvantage frequent-flier program members buy the extra miles to boost them to Platinum or Executive Platinum membership and members of  United's Mileage Plus program who are coming up short can also pay a fee. Getting into these loyalty programs can mean a year of upgrades to first class and free travel. Another way to add miles is to schedule flights with multiple stops. Is it worth it? For those who fly frequently being in one of these programs can make life a lot easier and as we have mentioned before, your best chance of a first class upgrade is if you are a member of one of these programs.

Ex-Patriots cornerback Ty Law certainly loves his cars. On eBay right now you can find his customized Dodge RAM SRT-10 pick-up truck. This truck has a silver exterior and a gray leather interior. This car features a Viper 500 horsepower engine, a Pioneer DVD head unit housed in a custom enclosure with a seven-inch flip-up screen and JL Audio amps and speakers and  22-inch NC Forged 6 Spoke wheels wrapped with Pirelli Scorpion Zeros. The truck also has a bed rug, a tonneau cover and has been lowered using a drop kit. The 2004 has a scant 3035 miles on it and current bids are hovering around $20,000.