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EVEN IN A DOWNTURN, AIRCRAFT CAN HELP MAINTAIN AND GROW BUSINESS |
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EVEN IN A DOWNTURN, AIRCRAFT CAN HELP MAINTAIN AND GROW BUSINESS EXTRACTING THE MOST FROM AIR TRANSPORTATION FROM CHARTER TO OWNERSHIP TO MANAGING OTHER PEOPLE'S AIRCRAFT |
Some aircraft operators have reduced their flying in the face of economic challenges. However, other companies—including several profiled in this article—are quietly continuing to use corporate aviation to help sustain and expand their businesses. Such companies have utilized an array of techniques to efficiently use business aircraft. Fractional aircraft ownership continues to be popular. The concept of buying a portion of an airplane and letting an experienced aviation company manage it has become the preferred solution for approximately 4,000 companies and high-net-worth individuals. Executive Jet remains the leader. The company operates nearly 400 aircraft, and during the next few years plans to add nearly 600 more to its fleet and extend its NetJets program to South America and Asia. The recent announcement that United Airlines’ parent company is going to enter the fractional business shows that even commercial air carriers recognize it is an attractive travel option. Aircraft management and charter companies, such as Long Island-based Summit Aviation, have developed innovative programs to make it easier for clients to use business aircraft cost-effectively. For example, Summit’s managed account program is billed as a cost-saving alternative to fractional ownership that requires no capital outlay and as little as a one-year commitment. It also offers guaranteed fixed costs, credits for unused flight hours and no direct charges for many positioning flights. Aircraft manufacturers continue to produce
more-capable aircraft that have lower operating costs. Earlier this
summer, Dassault Aviation unveiled a new three-engine jet called the
FNX, which will be capable of flying nonstop from the West Coast to
Tokyo. Companies that have not used business
aviation, but like the idea, still may be unsure which option is right
for them. “Talk to your peers in the business world,” recommends
Sheehan. “They probably use some form of on-demand air transportation.
[Then] you can get your toe in the water by chartering.” Based on your projected annual aircraft
usage, you then can decide which option is best for you. Sheehan recommends
that companies that plan to fly 100 or fewer hours per year should
focus on chartering. Fractional ownership often works best for firms
that need to fly 100 to 300 hours annually. Companies that expect
to fly over 250 hours per year should consider buying an airplane.
Ultimately, each company must determine the value—not merely the cost—of rapid, flexible air transportation. In today’s competitive economy, many companies find it indispensable.
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