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Posts Tagged ‘time savings’

Here’s Some Political Cover to Justify Business Charter

Tuesday, March 31st, 2009

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

Why Charter an Airplane, isn’t it expensive?

Tuesday, November 4th, 2008

The cost of chartering a private airplane depends on how you calculate the cost.  When you charter an executive aircraft, you are renting the whole airplane and pilot.  In effect, you become the owner of that airplane for the time you are chartering it.  There are several way to look at the cost, one is just to devide the number of passengers by the cost of the charter, ie. For our Navajo Chieftain, a flight from Detroit to Chicago Midway airport with 5 hours of wait time would be about $2600.000 round trip with taxes.  that would be $433 per person based on six people.  The airlines would charge about $300 to $600 per person plus taxes, depending on the travel times.  So it might be a little more expensive, depending on the deal the airline might be running at the time,  but you get to leave on your schedule, go to a show, and return that night.  Most airline flights do not run after a late show, so you would have hotel costs.  You also get much better service, an arrive at a more comfortable private terminal.

The other way to look at the price of aircraft charter is on the value of your time.   For example, a salesman who travels to sales calls can usually make several calls a day as opposed to usually one with an airline flight.  In addition, you might be able to send him out to meet a customer in the morning and have him back in the office after lunch to get some work finished.  You not only made his life easier by shortening his day, he is more productive and you save overnight expenses that you have on the airlines.  Most corporations that charter easily justify the cost by the times savings and customer support you offer the client by being able to rapidly respond to his needs.

Depending on your situation,  Chartering an airplane can actually save your company money and time over the airlines.  For personal travel,  Chartering may not be cheaper than the airlines but is well within the means of a small group to afford.  Imagine leaving for Chicago after work, seeing a play downtown and being back home at night to tuck the kids in!  Maybe not something you would do every week, but what a treat to yourself and family!