A Business Argument For Private Corporate Jets

One can make a case for using corporate aircraft to complete the business mission. At the same time showing that the expense is not insensible.
It is a sad concept that recent public sentiment has turned against corporate aviation. However, as one begins to focus on the reality of private jets in business, it becomes evident why corporations utilize private aircraft. Studies have made known that companies that use private fleets do better than their competition. Meaning they utilize available resources to complete their business mission.

It should be known that flying execs around the world is not the primary mission of corporate fleets. Actually, less than twenty percent of passengers that fly on private fleets are corporate executives. Many times the passenger is not even a person but equipment, mission critical parts, or raw materials. Vital pieces to operations or manufacturing, that keep the company alive and working properly. The jets also move highly skilled technicians and specialists to locations needed. They fix troubles that keep the businesses going and the employees working. Much better parts get to a plant today and everyone working, than the company lose productivity or the community jobs.

The corporate fleets also transport legislators at no cost, but racking up plenty of flight hours. In a twist of fate, these same politicians have turned on corporate fleets lately.

One significant advantage to businesses that use corporate fleets is that it can get employees to location after location in one day. This saves the company money on lodging, meals, expenses, but also on any lost production from those employees. Lost production can be significant when it concerns very highly salaried employees or company execs. Also, the private aircraft make sure that everyone arrives refreshed and at the top of their game. They will not be road weary from being in airports for hours, or stuck in an aircraft for hours sitting on a tarmac. There are also no missed, canceled, or delayed flights.

Sometimes, companies do not even own the aircraft but have adopted a more fiscally sensible form of ownership called fractional ownership. A fractional airplane is where multiple people or entities buy into an aircraft and share expenses. Thus, lowering the cost of ownership.

Another advantage is that private aircraft can reach around five thousand airports in the continental United States. Compare this to the just five hundred that the commercial carriers service and are reducing everyday. Just last year, the major airlines eliminated one hundred routes and airports from their service. This all means that staff can service more location per day with corporate aircraft, while getting work done flying in the meantime. Not much downtime with private jets.

So, as one begins to consider the true evidence, it becomes evident that corporate fleets do make sense for businesses wishing to win the business wars.

By Arturo Laclady
Published: 11/7/2009
 
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