Facts and Figures, Pro and Contra - Things to be considered...
- Why do employees travel via business aircraft?
To succeed in business.
- Why not just fly via the airlines?
The airlines often are the appropriate way to go. However, depending on a specific trips itinerary and the value placed on passenger time and productivity, travel by business aircraft often is the least expensive way to go when all costs and benefits are considered. Consequently, business aircraft often better pass a cost/benefit test. These employee travel judgments, typically made on a trip-by-trip basis, are subject to the same cost/benefit considerations and analysis applicable to any business decision. There also are some important trips that are just too difficult and time consuming to make on the airlines, making the trip untenable and subsequently untaken.
- Do business aircraft compete directly with the airlines?
No. Both the airlines and business aircraft are safe and efficient forms of transportation, but the selection of a particular travel mode depends upon destination and other business considerations. Operators of business aircraft traditionally have been heavy users of the airlines, with ticket purchases exceeding $11 billion annually.
- Why are business aircraft sometimes a better alternative?
Business aircraft can fly directly between any two locations served by nearly 3,500 airports in the contiguous U.S. - over ten times the locations served by scheduled airlines. "On-the-road" costs, such as hotels, meals, airport parking, rental cars, taxis, etc., can be minimized by efficient, shorter itineraries. Further, because of the privacy and quiet (no competitors watching/listening) available to business aircraft passengers, a lack of interruptions (no strangers or crying babies aboard), the availability of club seating and tables (to spread out, share, work), and access to office equipment, the office-like environment on business aircraft can facilitate unusually high levels of collaboration and productivity.
- If business aviation is so great, why doesnt everyone use it?
Like any business tool, the acquisition and use of business aircraft is subject to careful cost considerations. Like all business options, the cost/benefit relationship must be favorable for the option to be exercised. Consequently, managers typically use the airlines when appropriate, or business aircraft when appropriate.
- What if the cost of travel by business aircraft goes up?
The cost/benefit equation changes, which changes business assessments. Common sense suggests that any business practice that increases in price without increasing in value will decline in popularity.
- What do business aircraft users say about this cost/benefit question?
10,000 companies already have voted with their wallets.
- Are companies that operate business aircraft insensitive to their cost?
To the contrary, experience has shown that cost is the most significant factor in the decision to acquire, use, or sell business aircraft. As with any business decision, if the costs are too high, the trip will be untaken, the market unexplored, the product undeveloped, the service unprovided and the opportunity and the jobs it might generate lost.
- Saving Employee Time
"Efficient employee scheduling" and "employee time saved" are key advantages of business aircraft use. Because business aircraft have the ability to fly nonstop between 3,500 small, close-in airports ten times the number of locations served by scheduled airlines in the United States - highly efficient employee time management becomes a very real benefit. Additionally, the value of employee time often exceeds its cost to the company by substantial margins, further increasing the importance of employee time savings. Simply stated, business aviation helps a company obtain maximum productivity from its two most important assets people and time.
- Charging the Entrepreneurial Spirit
By minimizing or eliminating many of the barriers to travel, business aircraft allow business opportunities to be more readily considered and acted upon. Business cultures and their strategies change as markets, facilities, and customers in other, often-rural areas of the country once practically unreachable and thus unconsidered are newly accessible.
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This Report contains information about general business aviation and was extracted from a report from the NBAA.
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