Amid signs that the domestic private aviation industry is slumping, fractional jet provider Flight Options is shuffling its senior management. Founder Kenn Ricci has been named as chairman of Flight Options. He is the chairman of HIG Transport Holdings of Cleveland, the private equity firm which bought a controlling share of Flight Options from Raytheon in November of last year. Ricci returns to the company he founded, and then sold off to Raytheon six years ago. In the shakeup, CEO S. Michael Scheeringa is stepping down as Ricci associate Mike Silvestro, who returns to Flight Options after a furlough at CitationShares, will now head up the company’s day to day operations.

These moves follow just two months after Flight Options was forced to axe around 200 pilots, technicians, and administrative staff. The downturn in the U.S. economy has reduced demand for private jet travel. Flight Options’ business is down 15 percent compared to this time last year, according to a recent article in Cleveland’s The Plain Dealer. Business flyers who make up the bulk of Flight Options consumers have been particularly chastened, as accounting departments are insisting on more economical options for executive travelers. Yesterday, Merrill Lynch announced that they would institute a review process for all requests for private jet use, as the investment giant looks to cut costs.

With some new (old) blood in power at Flight Options, the company will look to maintain its position as the nation’s second largest fractional provider, behind industry leader NetJets. According to The Plain Dealer, Scheeringa who will remain as an advisor to the board, wrote a letter to Flight Options customers saying that the company will look to “strategic acquisitions” and new aircraft types. But no matter how effective the new leadership may be, Ricci and Silvestro face a formidable challenge, as signs suggest that the economic downturn may be more pronounced and prolonged than had been hoped for.