Posted March 30, 2009 by Michael J. Ryan
Let us help you put together a business case for business charter travel. We’ll start by finding out how much business travel you do as part of your job. We’ll break it down into how many business trips you take per week, per month, and this first quarter.

It’s important to count up the trips because if someone takes only two airline trips a year, they can’t help but ask, “What’s the big deal about standing in an airport security or check-in line?” Or, “So what if you have to kill 90 minutes each way changing planes?” They’ll think, “Would it really kill you to stay overnight this one time because your meeting ended too late for the last flight out?”

You’ve got to get everyone’s attention about the number of trips you take for the explanations about saving time to make any sense.

We can help you prepare some practical examples to illustrate a routine use of business aircraft versus the alternative of flying commercial. We would highlight three typical business jet trips flown last year that you reasonably expect to take again this year.

The analysis ought to show the number of stops, amount of work conducted at each location, explain work done aboard the plane, and add up the total productive hours for the trip. Then we’ll prepare an analysis of those same trips but using current commercial airline schedules.

Do the math. Show the actual productivity and time savings. And don’t forget to multiply the productivity impact on the company of anyone who travels with your client.

The key to this argument is found in overnight trips. Make the case that every overnight trip flying commercially, that could have been done same-day on charter, costs the company four wasted production hours per passenger.

Then, restate it in more colorful terms. Explain that every 10 airline overnight trips has the equivalent adverse impact on productivity of your top producer taking a week’s sick leave.

Our industry did too good a job over the years selling the luxury and perquisites of charter travel. Now our job is to focus on the hard-nosed business benefits. When we help you analyze and present the benefits, we supply you with the political cover you need to capitalize on the benefits and get back in our air.

(Ryan is President of AirPSG and can be reached at mike.ryan@airpsg.com or 800.769.6082.)

http://www.airpsg.com

The following article was written by David J. Wyndham, VP and Co-Owner of Conklin & de Decker,  an aviation data and consulting company.  It is used with permission of David J. Wyndham and applies equally well to the use of a charter aircraft or aircraft ownership.

Reason 1 Why not to have a Business Aircraft:  They save too much time. Time is a non-renewable resource.  In Latin, it is Tempus Fugit:  Time Flies.  Why use the aircraft to be in several places during a short amount of time?  What’s the use?  Showing your commitment and concern to your business, your clients, and your employees by making the most efficient use of this most limited resource will not pay off.  Productivity is overrated.

Reason 2 Why Not to Have A Business Aircraft.  They save wear and tear on valuable employees. Next to customers, employees are the most difficult part of running a business.  If keeping motivated, highly productive employees and top executives were important, we’d look for ways to keep the aircraft busy helping these employees get and keep customers.  As it is, these folks are overpaid,  They don’t bring in new business, make the company profitable, or add value.  Given the unemployment rate, you can always find another intelligent, honest, motivated senior executive to run the division, company or operating site.  These folks are like laptop computers, replaceable.  So let them languish on the road rather than being productive and happy.

Reason 3 Why Not To Have A Business Aircraft:  Aircraft allow you to meet with your customers more often. In poor economic times, your customers don’t have any money.  Why work hard to maintain that personal relationship? We’ve all heard stories about how business down cycles do inevitably turn positive and that those companies who work smarter in keeping their current customers tend to flourish when things get better.   Do you really believe all that business school lecturer fodder?

In being sarcastic, I’m trying to say that a well-chosen, well managed business aircraft is not a luxury, but a necessary investment in the current and future success of a business. It can be a Cessna 172 for a small firm or a global jet for an international firm.  The right aircraft can help the right people retain the right customers to both create value and ensure future growth.  During these down times, we all must carefully evaluate what is important to the future success of our companies.  The business aircraft can be one of those important tools.  Sometimes you jet need some help in justifying one.

And please remember, the important thing is to have access to a business aircraft.  You can do this by charter, ownership or, ownership with a leaseback, management agreement.  The course that is appropriate to your business is dictated by how much flying you will do yearly.