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How Aviation Benefits
   the Corporate
    Community
A skewed
perspective
When the topic of corporate aviation
  is discussed, how is it normally
             portrayed?


   It is only for the “RICH”

   It is a way for big corporations not to pay
   their taxes (“fair share”)

   Why can’t they fly the airlines like everyone
   else?

   It is just an extravagant expense
How many remember the General Motors
executives flying into Washington back in ’08?
- Bill Sporato (Time Magazine) put it this way
“Official Washington was outraged at the
extravagance”
- Or, Representative Gary Akerman (NY), "I
mean, couldn't you all have downgraded to first
class or jet-pooled or something to get here?''
How about the recent comments by our President?
- Richard Wolf (USA Today) - “President Obama
must really have it in for corporate jet owners, why
else would he single them out six times during his
press conference”

President Obama made this statement in the same
press conference. “You'll still be able to ride on your
corporate jet. You're just going to have to pay a little
more”
A Proper
Perspective
What is Corporate
   Aviation?

What size companies utilize these airplanes?

What aircraft make-up the corporate fleet?

What purpose do these airplanes have?

What benefit is realized by the company and
others?

What value is realized? (monetary and non-
monetary)
What Size companies
utilize these aircraft
 According to the National Business Aviation
 Association, 85% of companies that use
 business aircraft aren’t corporate giants, they
 are small and midsize companies.

 "General aviation aircraft are used by
 businesses of all sizes to generate
 opportunities and create growth, often in
 communities that aren't easily accessible
 through other means," said Craig Fuller, CEO
 of the Aircraft Owners and Pilots
 Association.
What Aircraft make-up
        the Corporate fleet?
                               Jets               Rotorcraft         Turboprop




                                            17%



                                      11%




                                                               72%




1. NEXA Research, NBAA, 2010
What purpose do
these aircraft have?
Transport employees

Transport executives

Medical, Evacuation and Humanitarian aid

Geodetics (GPS graphing)

Cargo handling / Mail / Freight

Customer support
What benefit is realized
       by the company?
                          Einstein would be proud:
                          - “Having an aircraft
                          allows me to do more in a
                          day… see more customers,
                          visit more distributors, and
                          make more appointments.
                          It is a way to leverage my
                          time. I call it my time
                          machine.”
                          Steven G.Whitney
                          PresidentWhitney
                          Products 2




2. NEXA Research, NBAA, 2010
“Time Machine”
5000 paved airports in the US as of 2008, only
376 have scheduled airline service(government database)




    Scenario: Trip to Clarksville, TN from
    Greenville. (Airline vs. Corporate)
        Airline: Arrive @ GSP 0430, leave for
        Nashville @ 0530 w/ a stop in CLT arrive in
        Nashville @ 0930 (EDT). Disembark and
        head to the rental car counter to get your car.
        (30 min). Drive to Clarksville approx. 1hr 5
        min. Arrive at destination around 1105 (EDT
        or 1005 (CDT).
Corporate / Charter: Arrive @ GMU 0745,
leave for Clarksville @ 0800, nonstop, arrive in
CKV @ 0900 (EDT), rental car waiting at the
plane. Arrive at your destination around 0930
(EDT) or 0830 (CDT)
Sure, that’s great
but what about cost?
 In the airline scenario, the tickets for 5
 passengers were $1500.

 Depending on your meeting you may stay
 overnight and have hotel rooms $550

 Loss of productivity: ?????

 Corporate / Charter: Around $5600, out and
 back same day (better schedule), no hotel
 rooms, normal work hours and back in the
 office next morning.
“In the time it takes for our employees to even
                get to the closest commercial airport, we can
                have them onsite using our own aircraft. It
                doesn’t take a lot of brain power and
                spreadsheets to realize that having the aircraft
                is a benefit.”
                Zane Lambert
                Flight DepartmentManager

                                                         19%   48%

             Limited or No Scheduled Airline Service
             Secondary Airport
             Commercial Airport
3 NEXA Research, NBAA, 2010
                                                       33%
What benefit is realized
  by the company and
        others?
Company
  Increased productivity (employees and
  management)

  Improved security of employees and property

  Improved customer retention (Key to any
  business, customer support)
Others
Ed Bolen, CEO of the National                                      Customer Offices
Business Aviation Association,                                     New Customer Sales
                                                                   Company Facilities
noted the general aviation                               4 NEXA Research, NBAA, 2010


industry employs 1.2 million
people and generates $150
billion in revenue annually. He                              24%
                                                                                       43%

added:
“these companies are using their aircraft to reach for
opportunities to keep their businesses alive in an
unforgiving economic marketplace. In the process,
they're bringing jobs, investment and hope to towns          33%
across the country”
What value is realized?
         (monetary / Non-
             Monetary)

                        Superior financial performance

                        Reduced recession impact

                        Better customer access



5 NEXA Research, NBAA, 2010
Superior Financial Performance
   Users of business aviation outperformed
   nonusers. Not surprisingly, the companies
   operating business aircraft performed better
   financially than companies that did not.

   (Small / Medium’s) using business aviation
   recognized its strategic value, and did not need
   sophisticated justification to make the business
   case for keeping or even expanding business
   aviation’s role. Many said they could not have
   grown their company without business aircraft
   and the access to smaller airports close to their
   customers.
Reduced Recession Impact



   SMEs using business aircraft were less
   impacted than nonusers. Indeed 69 percent of
   these companies posted greater top line
   growth in 2008 and 2009.
Better Customer Access
  NBAA President and CEO Ed Bolen and other
  general aviation leaders discussed the value of
  light business aircraft to companies needing “to
  save money and keep their schedules flexible.”

  Bolen said these aircraft are often used by
  companies “trying to visit three, four sites in the
  same day, and that can’t be done with other
  modes of transportation.”

  Cessna Aircraft Company CEO Jack Pelton said
  of today’s fuel-efficient light business aircraft: “It
  is an office in the sky. This is not a luxury – it’s
  really a business tool.”

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Business aviation benefits

  • 1.
  • 2. How Aviation Benefits the Corporate Community
  • 4. When the topic of corporate aviation is discussed, how is it normally portrayed? It is only for the “RICH” It is a way for big corporations not to pay their taxes (“fair share”) Why can’t they fly the airlines like everyone else? It is just an extravagant expense
  • 5. How many remember the General Motors executives flying into Washington back in ’08? - Bill Sporato (Time Magazine) put it this way “Official Washington was outraged at the extravagance” - Or, Representative Gary Akerman (NY), "I mean, couldn't you all have downgraded to first class or jet-pooled or something to get here?''
  • 6. How about the recent comments by our President? - Richard Wolf (USA Today) - “President Obama must really have it in for corporate jet owners, why else would he single them out six times during his press conference” President Obama made this statement in the same press conference. “You'll still be able to ride on your corporate jet. You're just going to have to pay a little more”
  • 7.
  • 9. What is Corporate Aviation? What size companies utilize these airplanes? What aircraft make-up the corporate fleet? What purpose do these airplanes have? What benefit is realized by the company and others? What value is realized? (monetary and non- monetary)
  • 10.
  • 11. What Size companies utilize these aircraft According to the National Business Aviation Association, 85% of companies that use business aircraft aren’t corporate giants, they are small and midsize companies. "General aviation aircraft are used by businesses of all sizes to generate opportunities and create growth, often in communities that aren't easily accessible through other means," said Craig Fuller, CEO of the Aircraft Owners and Pilots Association.
  • 12. What Aircraft make-up the Corporate fleet? Jets Rotorcraft Turboprop 17% 11% 72% 1. NEXA Research, NBAA, 2010
  • 13. What purpose do these aircraft have? Transport employees Transport executives Medical, Evacuation and Humanitarian aid Geodetics (GPS graphing) Cargo handling / Mail / Freight Customer support
  • 14. What benefit is realized by the company? Einstein would be proud: - “Having an aircraft allows me to do more in a day… see more customers, visit more distributors, and make more appointments. It is a way to leverage my time. I call it my time machine.” Steven G.Whitney PresidentWhitney Products 2 2. NEXA Research, NBAA, 2010
  • 16. 5000 paved airports in the US as of 2008, only 376 have scheduled airline service(government database) Scenario: Trip to Clarksville, TN from Greenville. (Airline vs. Corporate) Airline: Arrive @ GSP 0430, leave for Nashville @ 0530 w/ a stop in CLT arrive in Nashville @ 0930 (EDT). Disembark and head to the rental car counter to get your car. (30 min). Drive to Clarksville approx. 1hr 5 min. Arrive at destination around 1105 (EDT or 1005 (CDT).
  • 17. Corporate / Charter: Arrive @ GMU 0745, leave for Clarksville @ 0800, nonstop, arrive in CKV @ 0900 (EDT), rental car waiting at the plane. Arrive at your destination around 0930 (EDT) or 0830 (CDT)
  • 18. Sure, that’s great but what about cost? In the airline scenario, the tickets for 5 passengers were $1500. Depending on your meeting you may stay overnight and have hotel rooms $550 Loss of productivity: ????? Corporate / Charter: Around $5600, out and back same day (better schedule), no hotel rooms, normal work hours and back in the office next morning.
  • 19. “In the time it takes for our employees to even get to the closest commercial airport, we can have them onsite using our own aircraft. It doesn’t take a lot of brain power and spreadsheets to realize that having the aircraft is a benefit.” Zane Lambert Flight DepartmentManager 19% 48% Limited or No Scheduled Airline Service Secondary Airport Commercial Airport 3 NEXA Research, NBAA, 2010 33%
  • 20. What benefit is realized by the company and others? Company Increased productivity (employees and management) Improved security of employees and property Improved customer retention (Key to any business, customer support)
  • 21. Others Ed Bolen, CEO of the National Customer Offices Business Aviation Association, New Customer Sales Company Facilities noted the general aviation 4 NEXA Research, NBAA, 2010 industry employs 1.2 million people and generates $150 billion in revenue annually. He 24% 43% added: “these companies are using their aircraft to reach for opportunities to keep their businesses alive in an unforgiving economic marketplace. In the process, they're bringing jobs, investment and hope to towns 33% across the country”
  • 22. What value is realized? (monetary / Non- Monetary) Superior financial performance Reduced recession impact Better customer access 5 NEXA Research, NBAA, 2010
  • 23. Superior Financial Performance Users of business aviation outperformed nonusers. Not surprisingly, the companies operating business aircraft performed better financially than companies that did not. (Small / Medium’s) using business aviation recognized its strategic value, and did not need sophisticated justification to make the business case for keeping or even expanding business aviation’s role. Many said they could not have grown their company without business aircraft and the access to smaller airports close to their customers.
  • 24. Reduced Recession Impact SMEs using business aircraft were less impacted than nonusers. Indeed 69 percent of these companies posted greater top line growth in 2008 and 2009.
  • 25. Better Customer Access NBAA President and CEO Ed Bolen and other general aviation leaders discussed the value of light business aircraft to companies needing “to save money and keep their schedules flexible.” Bolen said these aircraft are often used by companies “trying to visit three, four sites in the same day, and that can’t be done with other modes of transportation.” Cessna Aircraft Company CEO Jack Pelton said of today’s fuel-efficient light business aircraft: “It is an office in the sky. This is not a luxury – it’s really a business tool.”