Money-Losing Intel Grounds Corporate Air Shuttle Fleet

The tech giant posted a $1.6 billion net loss last quarter.

An Intel Air Shuttle aircraft (Photo: Shutterstock | Sundry Photography)

[ News ]August 5, 2024 4:04 pm ET

By Ryan Ewing

Following dismal second-quarter earnings and a bleak forecast, Intel is grounding its fleet of four Embraer jets. This move comes after the company announced aggressive cost-cutting measures, including layoffs for 15% of its workforce.

The Santa Clara, Calif.-based company has operated a corporate shuttle for decades, which moves employees through its various West Coast facilities. Commonly referred to as ‘Intel Air,’ the aircraft fly on regular schedules with up to 24 flights per day before the COVID-19 pandemic.

According to Cirium Fleet Analyzer data, the Intel Air Shuttle has four active aircraft in its fleet, including two Embraer E145s plus two E175s. The company has hangars at Phoenix Mesa Gateway Airport, Sacramento Mather Airport, and Hillsboro Airport. It also operates flights to San Jose, Calif.

N486FM Intel Air Shuttle Aircraft Embraer ERJ-175STD about to depart Exeter Airport Devon U.K on the morning of the 6th March 2024 on delivery. It is the first of type for the airline and joins 3 Embraer ERJ-145s. pic.twitter.com/ElzaCK3Kof

— ian simpson (@iansimpsonsimmo) March 6, 2024

First reported by The Oregonian/Oregon Live, the shuttle’s permanent shutdown joins a long list of other scaled-back employee benefits. “We really aren’t in a situation where we could continue to afford benefits and programs that are above market practice,” Intel’s human resources chief Christy Pambianchi told employees.

Intel just recently resumed operating the shuttle in April 2024 after a year-long pause. At the time, a company spokesperson said the shutdown was intended to “reduce employee travel as part of our ongoing cost-cutting efforts.”

The four aircraft are operated by GMJ Air Shuttle, LLC, which uses the callsign “High Tech.” GMJ is part of the Florida-based private aviation firm XOJet and operates under FAA Part 125 rules.

Intel did not immediately respond to AirlineGeeks’ request for comment on the shutdown.

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Ryan Ewing

Ryan founded AirlineGeeks.com back in February 2013 and has amassed considerable experience in the aviation sector. His work has been featured in several publications and news outlets, including CNN, WJLA, CNET, and Business Insider. During his time in the industry, he's worked in roles pertaining to airport/airline operations while holding a B.S. in Air Transportation Management from Arizona State University along with an MBA. Ryan has experience in several facets of the industry from behind the yoke of a Cessna 172 to interviewing airline industry executives. Ryan works for AirlineGeeks' owner FLYING Media, spearheading coverage in the commercial aviation space.

Follow Ryan

Author

Ryan Ewing

Ryan founded AirlineGeeks.com back in February 2013 and has amassed considerable experience in the aviation sector. His work has been featured in several publications and news outlets, including CNN, WJLA, CNET, and Business Insider. During his time in the industry, he's worked in roles pertaining to airport/airline operations while holding a B.S. in Air Transportation Management from Arizona State University along with an MBA. Ryan has experience in several facets of the industry from behind the yoke of a Cessna 172 to interviewing airline industry executives. Ryan works for AirlineGeeks' owner FLYING Media, spearheading coverage in the commercial aviation space.
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