Looking at Private Aircraft For Business

The expense of traveling by private jet keeps it out of reach for most. Many times businesses get in trouble or get criticized for using private aircraft. Still, a business argument can be made for flying aboard private aircraft.

The first aspect a business should look at is its form of aircraft ownership. There are many alternatives when flying aboard corporate aircraft. A business does not need the high cost of full ownership. The high purchase cost and high cost of ownership raises eyebrows of auditors and shareholders. Yet, with fractional ownership and chartering options, private jet travel can be less expensive and not burdened a business with ownership costs.

Another aspect to using private aircraft for business is the productivity gains. When expensive executives or technicians could cover as much ground in a day that would take a week with commercial travel, that is a strong argument for private aircraft. In addition, getting executives out of the commercial travel rat race, can itself improve productivity. When tough negotiations are happening, having sharp people fully prepared is a necessity. This is gained by private jet travel as opposed to sticking the same people on a commercial aircraft. It is conceivable that a private flight would take only two hours from point to point. Commercial travel with arriving early for security, flight delays, flight time, connections, etc. could take half a day or more at a minimum. Private jets are productivity gained.

The last aspect to examine is the fiscal case. Comparing private aircraft to commercial travel on a spreadsheet can be enlightening. Total the cost of first class tickets, hotels, and the hourly cost of C-level executives spend traveling versus the cost of flying aboard private executive aircraft, and the costs can become equal. As the group of executives grows, so can the savings.

As one can see, looking more closely at private jets, there are business events that can be made for the use of corporate jets.

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