This is an interesting article from the Wall Street Journal about private jets. I always thought that corporate jets spent most of their time ferrying C- level executives around, but it turns out they spend a lot of time ferrying other people and equipment around as well.
Make sure you check out the rest of the article on the WSJ's website. Come to my aviation website for other aviation news.
WSJ: In light of the controversy sparked by auto executives two years ago, do you think companies now view corporate jets as taboo?
Mr. Bolen: I think a CEO or a senior executive, board of directors and shareholders should all have an attitude of when the business airplane makes good sense, when it's the right tool for the mission, then it should be used. Flying as a status symbol is probably not an appropriate business philosophy or measurement stick, just as not flying [isn't one]. If a company could do more for its shareholders and for its employees by seeing four customers in one day instead of four customers in two weeks, then they really ought to do it.
WSJ: What's the experience of being on one of these jets?
Mr. Bolen: Think of what it feels like in a minivan, except that the seats tend to face each other so you can have a conversation. That's why a lot of companies use these because they feel can turn their travel time into productive work time. They don't have to worry about eavesdropping or discussing proprietary equipment. So a company can have four people—some planes hold six maybe eight people—and they can discuss propriety information. ...
We've done surveys throughout the business aviation community. CEOs are generally aboard the company airplane generally 15% of the time. The majority of the time business airplanes are flying, over 50% of the time, with no senior executive aboard the plane. They are moving technicians, salespeople, engineers or parts and equipment.
WSJ: What are the pros and cons to business jet ownership, fractional ownership and chartering?
Mr. Bolen: It generally matters how often you'd be using the airplane. If there are just a couple of times a year … where you need to visit three cities in a single day or move a large team of employees to an area with not good commercial airline service or move a piece of equipment that won't fit in an overhead bin or is too fragile for a cargo hold, … then you'd probably charter.
If you have more than that ... but it is eight or 12 times a year, it might be cheaper to have a fractional share. If you are flying every day—say you're a company headquartered in a community with no airline service at all and you've a got lot of need to see customers and move teams around, then it may make sense to own your own airplane.
Read more at www.wallstreetjournal.com
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