Every now and then I like to veer away from airlines and write about the other side of the industry. My last article said that demand would remain the same – even during the pricey fuel summer. Now that pricey fuel has gone to a nice low, there is a new burden among us; the economy. It’s fair to say that the price of fuel barely affected Executive Aviation. However now that the economy is at a low, we may see a turn for the worse in this sector of aviation.
Ford recently announced their plans to reduce their corporate jet fleet, which currently stands at 5 aircraft, after facing criticism from members of congress. Travel expenses can account for a large percent of a company’s expenses. A trip to Europe, for one employee, can be as much as $1,000 just on coach. Private & Executive aircraft are not cheap; even NetJet’s fractional interests start at $416,625. It’s a costly luxury to have. Companies are facing financial hardship, and I think we may see quite a few ground their executive jets.
What are the advantages? Ford says that executives are safer and able to get more work done when they fly in a corporate jet. Sure – it’s easier to get work done in a corporate jet, but safer…? Everyday thousands of business travelers take the risk of flying. I personally think that your chances of perishing on-board a commercial flight are lower than private. Boeing says, “In 2000, the world’s commercial jet airlines carried approximately 1.09 billion people on 18 million flights, while suffering only 20 fatal accidents.”
Why fly corporate? It’s faster, it’s direct, and it’s easier for executives. Remember the expression “Time is money?” – it’s just that. As for the winter of 2008-2009, I think we may see a slight drop in corporate aviation’s popularity.
Interested in Executive / Corporate Aviation? Head on over to Robert Mark’s JetWhine.
