NBAA Reacts to USA Today Article on Business Aircraft Use
National Business
Aviation Association (NBAA) President and CEO Ed Bolen has issued
the following statement in response to an April 26, 2005, article,
published in USA Today, which focused on business aircraft use.
NBAA also has sent a letter to the editor of the newspaper
concerning the matter.
What USA Today Didn't Say About Business Aircraft Use
A statement from Ed Bolen, President and CEO, National
Business Aviation Association
It seems that every year or so, a journalist recycles a story
about the annual filings of publicly traded companies to write a
condemning account of corporate officials' use of company aircraft.
So it was with a recent USA Today story focusing on use of company
planes for personal executive travel (“The corporate jet:
Necessity or ultimate executive toy?” 4/26/05).
Unfortunately, this
sensationalist approach conveys the impression that business
aviation is simply a perk of the corporate elite, when the facts
document a very different, American entrepreneurial story.
About 15,000 business aircraft are registered in the United
States, only 3 percent of which are flown by Fortune 500 companies.
The vast majority, 97 percent, are flown by a diverse group of
operators in every state – government, schools and
universities, farms, foundations and other charitable
organizations, religious institutions and an array of small and
medium-size businesses.
Passenger surveys indicate that the majority of business
aviation flyers, 86 percent, are not top management, but mid-level,
professional or technical staff heading to a remote location or
making more efficient use of business time.
Surveys also show that business aviation passengers who make
decisions about whether or not to use company aircraft are cost
sensitive; their use drops by half if the cost of that business
flight increases by $300 per takeoff and landing.
And, contrary to claims
made in USA Today, studies have shown that companies operating
business aircraft earn over 140 percent more in cumulative
shareholder returns than companies without business aircraft.
So what about the minority of corporate executives whose
compensation includes personal travel privileges on company planes,
which USA Today chose to focus on instead of the more than 10,000
American companies using business aircraft?
There are many reasons why an executive might use aircraft for
purposes other than business travel. Some company directors require
top executives to use company planes for all their travel based on
the outstanding safety and security of business aviation. In a
post-9/11 world, security for many companies has become a higher
priority, and a company plane features pilots, crew and passengers
who all know each other, in contrast to the passenger airlines.
Other company directors cite the importance of making the best use
of their top executives' time, and prefer the greater efficiency of
a company plane to commercial aviation. In some instances, top
executives have negotiated personal use of company planes as part
of their compensation packages.
Corporate boards of directors develop travel policies including
personal use of corporate planes in full compliance with federal
tax laws and Securities and Exchange Commission rules. These
decisions are based on what is deemed best for running the business
and retaining top management talent. In sum, on what is best for
the bottom line.
The fact is, America's business aviation travelers are many
thousands of professionals, managers, owners and technicians flying
to conduct business safely and efficiently. It's unfortunate that
USA Today tried to portray this community in an unfavorable
light.