Wednesday, January 22, 2014

Is Business Aviation Cost Effective?

Business Aviation Education from Aargus Air Charter                                                                                  Volume 1, Post 5

Sometimes yes, and sometimes no. It's pretty much like any other business investment or expenditure. If you are trying to cost-justify business aviation purely in terms of travel expenses, you'll almost always get a better deal on the scheduled airlines. Note that I said almost.

But having said that, if your only criterion is travel expense, the scheduled airlines are a terrible choice. If you want to travel at the lowest possible cost, you should be riding the bus. Or maybe taking the train. Even driving a car would be cheaper.

Don't be silly, you say. We'd never take the bus. While it's true we cannot possibly get from here to there at a lower cost, look at the travel times. And the route. And...well everything. No one would ride the bus for business.

So, say I. Cost is NOT the most important criterion, is it. Well no, you'd admit. It's cost balanced against travel schedules, itineraries, nights away from home, days away from the office, that sort of thing. Might you also consider privacy, the ability to have confidential discussions en-route, being able to review and change presentations along the way? Would these things be important? And what about arriving rested and refreshed so you can go directly to your meeting or sales call? Would that be important?

You're starting to see the bigger picture. Business aviation is all about the benefits of saving time. On some trips, saving time would be nice but really doesn't matter. If you're going to a plant and staying a week, you may not care how fast you got there. (You might care a great deal about how quickly you can get back home, though!)

On the other hand, if you're buried in work at the office but you're also the company's top "closer" and the regional sales manager needs you out in the field to get the deal closed, time is very important to you. Being able to go there non-stop right after lunch, close the sale, and be back home by 6 PM may be the best possible use of your time.

Oh, about that comment almost. If you have 3 people going to the same place, and it's last minute full-fare tickets, business aviation can be about the same cost as the scheduled airlines. If you have four or more folks going at the last minute, business aviation is frequently a better deal than the scheduled airlines.

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