Looking at private aircraft for business

Spending a ride by private jet keeps it out of reach of most. Many times businesses get involved or get criticized for using a private jet. Still, a business argument can be made to fly in a private jet.

The first aspect the business needs to look at is the form of ownership of the aircraft. There are many alternatives when flying on an organizational plane. A business does not have the high cost of full ownership. The high cost of purchase and the high cost of ownership raises eyebrows of accountants and shareholders. However, with partial ownership and charter options, private jet travel can be less expensive and not burdened with business ownership costs.

Another aspect of using a private jet for business is productivity gains. When expensive managers or technicians can cover a lot of space on a day that will take a week with commercial travel, this is a strong argument for private jets. In addition, getting managers out of rat race and commercial travel, can itself improve productivity. When tough negotiations are conducted, sharp people are needed in full preparation. This is done by driving a private jet compared to sticking them to the people on a commercial airplane. It is likely that a private flight will take only two hours from point to point. Commercial travel with early arrival security, flight delays, flight time, connections etc. can last for half a day or more at a minimum. Private jets are productivity gained.

The final aspect to be examined is the fiscal case. Comparing private jets to a commercial journey on a spreadsheet can be enlightening. The total cost of tickets, hotels and the annual cost of managers at the G & A level spend the journey compared to the cost of flying in private aircraft, and the costs can be equal. As the group of managers grows, so does the savings.

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

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