Corporate aviation provides significant benefits to companies of all sizes by enabling increased productivity, improved customer support, and access to remote locations. While often portrayed negatively, the majority of corporate aircraft are used by small to mid-sized companies and help generate economic activity. Utilizing aircraft allows companies to visit multiple customer sites in a single day, improve scheduling flexibility, and experience greater financial performance compared to non-users especially during economic downturns. Both monetary and non-monetary values are realized through corporate aviation.
4. When the topic of corporate aviation
is discussed, how is it normally
portrayed?
It is only for the “RICH”
It is a way for big corporations not to pay
their taxes (“fair share”)
Why can’t they fly the airlines like everyone
else?
It is just an extravagant expense
5. How many remember the General Motors
executives flying into Washington back in ’08?
- Bill Sporato (Time Magazine) put it this way
“Official Washington was outraged at the
extravagance”
- Or, Representative Gary Akerman (NY), "I
mean, couldn't you all have downgraded to first
class or jet-pooled or something to get here?''
6. How about the recent comments by our President?
- Richard Wolf (USA Today) - “President Obama
must really have it in for corporate jet owners, why
else would he single them out six times during his
press conference”
President Obama made this statement in the same
press conference. “You'll still be able to ride on your
corporate jet. You're just going to have to pay a little
more”
9. What is Corporate
Aviation?
What size companies utilize these airplanes?
What aircraft make-up the corporate fleet?
What purpose do these airplanes have?
What benefit is realized by the company and
others?
What value is realized? (monetary and non-
monetary)
10.
11. What Size companies
utilize these aircraft
According to the National Business Aviation
Association, 85% of companies that use
business aircraft aren’t corporate giants, they
are small and midsize companies.
"General aviation aircraft are used by
businesses of all sizes to generate
opportunities and create growth, often in
communities that aren't easily accessible
through other means," said Craig Fuller, CEO
of the Aircraft Owners and Pilots
Association.
12. What Aircraft make-up
the Corporate fleet?
Jets Rotorcraft Turboprop
17%
11%
72%
1. NEXA Research, NBAA, 2010
13. What purpose do
these aircraft have?
Transport employees
Transport executives
Medical, Evacuation and Humanitarian aid
Geodetics (GPS graphing)
Cargo handling / Mail / Freight
Customer support
14. What benefit is realized
by the company?
Einstein would be proud:
- “Having an aircraft
allows me to do more in a
day… see more customers,
visit more distributors, and
make more appointments.
It is a way to leverage my
time. I call it my time
machine.”
Steven G.Whitney
PresidentWhitney
Products 2
2. NEXA Research, NBAA, 2010
16. 5000 paved airports in the US as of 2008, only
376 have scheduled airline service(government database)
Scenario: Trip to Clarksville, TN from
Greenville. (Airline vs. Corporate)
Airline: Arrive @ GSP 0430, leave for
Nashville @ 0530 w/ a stop in CLT arrive in
Nashville @ 0930 (EDT). Disembark and
head to the rental car counter to get your car.
(30 min). Drive to Clarksville approx. 1hr 5
min. Arrive at destination around 1105 (EDT
or 1005 (CDT).
17. Corporate / Charter: Arrive @ GMU 0745,
leave for Clarksville @ 0800, nonstop, arrive in
CKV @ 0900 (EDT), rental car waiting at the
plane. Arrive at your destination around 0930
(EDT) or 0830 (CDT)
18. Sure, that’s great
but what about cost?
In the airline scenario, the tickets for 5
passengers were $1500.
Depending on your meeting you may stay
overnight and have hotel rooms $550
Loss of productivity: ?????
Corporate / Charter: Around $5600, out and
back same day (better schedule), no hotel
rooms, normal work hours and back in the
office next morning.
19. “In the time it takes for our employees to even
get to the closest commercial airport, we can
have them onsite using our own aircraft. It
doesn’t take a lot of brain power and
spreadsheets to realize that having the aircraft
is a benefit.”
Zane Lambert
Flight DepartmentManager
19% 48%
Limited or No Scheduled Airline Service
Secondary Airport
Commercial Airport
3 NEXA Research, NBAA, 2010
33%
20. What benefit is realized
by the company and
others?
Company
Increased productivity (employees and
management)
Improved security of employees and property
Improved customer retention (Key to any
business, customer support)
21. Others
Ed Bolen, CEO of the National Customer Offices
Business Aviation Association, New Customer Sales
Company Facilities
noted the general aviation 4 NEXA Research, NBAA, 2010
industry employs 1.2 million
people and generates $150
billion in revenue annually. He 24%
43%
added:
“these companies are using their aircraft to reach for
opportunities to keep their businesses alive in an
unforgiving economic marketplace. In the process,
they're bringing jobs, investment and hope to towns 33%
across the country”
22. What value is realized?
(monetary / Non-
Monetary)
Superior financial performance
Reduced recession impact
Better customer access
5 NEXA Research, NBAA, 2010
23. Superior Financial Performance
Users of business aviation outperformed
nonusers. Not surprisingly, the companies
operating business aircraft performed better
financially than companies that did not.
(Small / Medium’s) using business aviation
recognized its strategic value, and did not need
sophisticated justification to make the business
case for keeping or even expanding business
aviation’s role. Many said they could not have
grown their company without business aircraft
and the access to smaller airports close to their
customers.
24. Reduced Recession Impact
SMEs using business aircraft were less
impacted than nonusers. Indeed 69 percent of
these companies posted greater top line
growth in 2008 and 2009.
25. Better Customer Access
NBAA President and CEO Ed Bolen and other
general aviation leaders discussed the value of
light business aircraft to companies needing “to
save money and keep their schedules flexible.”
Bolen said these aircraft are often used by
companies “trying to visit three, four sites in the
same day, and that can’t be done with other
modes of transportation.”
Cessna Aircraft Company CEO Jack Pelton said
of today’s fuel-efficient light business aircraft: “It
is an office in the sky. This is not a luxury – it’s
really a business tool.”