General Aviation Services

Business Aviation: A Critical Part of Success For Companies Across America

Q: Aren’t business aircraft used mostly by major corporations?

A:  No, the vast majority of companies using business aviation–85%–are small and mid-
size businesses and other entities, including nonprofit organizations. For every Fortune 500 company that relies on business aviation, there are several small businesses that also need their airplane. Most companies use just one business airplane, which typically seats six passengers and flies relatively short stage lengths, mostly using small community airports.

Q: Aren’t the planes used just for CEO transportation?

A:  While each company has its own policies for use of business aircraft, an NBAA survey
revealed that 86% of passengers aboard business airplanes are mid-level people, including salespeople, engineers, or other employees. Many companies have a first-come-first-served policy for use of the aircraft.

Why Companies Utilize Business Aviation

Business aviation is defined as the use of a general aviation airplane for a business purpose. It essential to tens of thousands of companies of all types and sizes in the U.S. that are trying to compete in a marketplace that demands speed, flexibility, efficiency and productivity. The vast majority of these companies – 85% - are small and mid-size businesses, many of which are based in the dozens of markets across the country where the airlines have reduced or eliminated service.

A company’s decision to utilize business aviation for any mission depends on a variety of factors, including availability of commercial service in the departing or arrival destinations, the number of sites to be visited in a single day, the number of employees traveling, the need to discuss proprietary matters en route, the need to move specialized equipment and a host of other considerations. The following list details some of the primary reasons companies utilize business aviation as a solution to some of their transportation challenges. 

Business Aviation: A Critical Part of Success For Companies Across America

In light of recent publicity surrounding Congressional hearings about certain companies’ use of business aviation, NBAA has fielded inquiries from representatives with news organizations and other individuals about what business aviation is and how it is used in the U.S.

To clear up a number of misperceptions, NBAA has provided the questions most often asked of the Association, with responses that lay out the facts to explain how business aviation helps companies of all sizes remain nimble, competitive and successful, especially in a difficult economic climate.

Q: Aren’t business aircraft used mostly by major corporations?

A: No, the vast majority of companies using business aviation–85%–are small and mid-size businesses and other entities, including nonprofit organizations. For every Fortune 500 company that relies on business aviation, there are several small businesses that also need their airplane. Most companies use just one business airplane, which typically seats six passengers and flies relatively short stage lengths, mostly using small community airports.

It's A Fact: Business Aviation Is Essential To America

Aircraft Sales & Information www.genav.com

FACT:
Business aviation contributes $150 billion to U.S. economic output, and employs more than 1.2 million people. (GAMA)

FACT:
Few flights carry executives. 74% are time-critical trips by sales, technical and middle management employees. (NBAA, Louis Harris Study)

FACT:
Almost all airline flights go from only 70 major hubs.  Even worse, the airlines have abandoned nearly 100 mid-sized cities in just the last year. 

FACT: 
Business aviation reaches over 5,000 public-use airports in the U.S., providing communities large and small with fast, flexible, safe, secure and cost-effective access to destinations across the country and around the world. FACT:
America dominates business aviation manufacturing. Half the general aviation airplanes manufactured in the United States are exported, helping our balance of trade.

FACT:
Even the handful of manufacturers outside the U.S. “complete” their aircraft here in America, adding avionics, electronics, automation systems, engines, paint, interiors and other aircraft components manufactured here in the U.S.

Defending Your Jet

How to respond to increased scrutiny of your use of business aviation
By: Robert Mark

Sitting behind a long table in front of Congress in November, the CEOs of Detroit’s Big Three automakers had barely begun pleading for a taxpayer bailout when they hit an unexpected snag.

Without warning, the media suddenly became obsessed with the business jets that Ford’s Alan Mulally, General Motor’s Rick Wagoner and Chrysler’s Robert Nardelli had used to reach Washington. Soon after the airplane story began making the rounds, the House Financial Services Committee hearings descended into a textbook example of public relations gone awry, proving yet again that corporate images have almost everything to do with perception and often little to do with reality.

Perk or Necessity: The Business Case for Corporate Aviation

Corporate aircraft ownership is a business-critical solution for thousands of companies committed to increasing shareholder value.

Owning and operating a corporate aircraft has evolved far beyond a perk for company executives.  It is a business-critical tool for thousands of corporations intent on increasing economic viability and shareholder value.  Global economic changes, advancements in technology and changes in the aircraft market itself are all contributing to a new and potentially advantageous scenario for companies that own and operate business-use aircraft.  These advantages occur in the areas of productivity, acceleration of business, customer relationships, and in the reduction of company infrastructure.

Productivity

One look at a busy commercial airport is all that is needed to see millions of dollars of lost productivity: talented, busy people standing in long lines, wasting valuable company time.  Throw in the occasional security anomaly, and an entire day of productive work is wasted.  When a company’s leaders and senior management are stuck in those lines, or driving to and from major airports, the true cost of commercial travel begins to soar.

About NARA: 20 Questions

Aviations Leading Pre-Owned Aircraft Organization

The details in buying an airplane involve a very complicated and time consuming process and many questions arise at different points on your path to a successful transaction. 

NARA members will ensure that you receive the correct answers to these questions as early as possible in the transaction process.

1. Do you know the performance specs, characteristics and operating costs of a broad range of aircraft that could suit your needs and budget?
2. Are you aware of the sometimes subtle and significant changes airframe and engine manufacturers make to their product line across various models through progressive model years and serial numbers, and their effect on sales price and resale value?
3. Are you familiar with aircraft available on a worldwide basis, and can you evaluate which of those aircraft to avoid due to questionable maintenance or other factors?
4. If you currently own an airplane, will you be better off selling it yourself, using the aircraft as a trade-in on a new purchase, or contracting with an aircraft sales company to dispose of it for you in a simultaneous purchase/transfer?
5. Have you considered the alternatives between a turn-key, ready-to-go airplane vs. an airplane with mid-time or run-out components, and the cost-value advantages or disadvantages of each situation?