Companies Using Business Aircraft Consistently Outperform Those
That Do Not
NBAA and GAMA Thursday welcomed a
new study showing that, by a host of measurements, companies using
business aviation outperform those without aircraft.
"This study shows what the people in the business aviation
community have always known," said NBAA President and CEO Ed Bolen.
"A business airplane is the sign of a well-managed company, because
business aviation helps companies of all sizes be more efficient,
productive and competitive."
"It's no surprise that America's best-performing and
most-admired companies rely on business aviation to provide
concrete and unique competitive benefits that are reflected in
shareholder and enterprise value," said GAMA President and CEO Pete
Bunce.
The study, conducted by NEXA Advisors, concludes: "Business
aircraft users had a dominant presence, on average of 92 percent,
among the most innovative, most admired, best brands, and best
places to work, as well as dominating the list of companies
strongest in corporate governance and responsibility." The report
also finds that business aviation alone is the only asset capable
of accelerating strategic transactions and therefore providing a
competitive edge to top-performing companies.
The study's authors examined how
companies included in the Standard & Poor's (S&P) 500
performed in revenue growth, profit growth and asset efficiency
from 2003 through 2008, the most recent six-year period for which
complete data was available. Business aircraft use was tied to key
enterprise drivers outlined in the study; S&P 500 executives
were also extensively interviewed, and an independent
cross-reference of findings was performed.
"In conducting this study, we found that companies using
business aircraft outperform non-users across every key financial
and non-financial measure of business success," said the study's
lead author, Michael Dyment, managing director of NEXA Advisors. By
way of illustration, Dyment pointed to a number of compelling
findings included in the study. For example:
- Average annual revenue growth on a market cap-weighted basis
was 116 percent higher for users of business aircraft than for
non-users.
- Average annual earnings growth was 434 percent higher for users
of business aircraft than for non-users.
- Total stock and dividend growth was 252 percent higher for
users of business aircraft than for non-users.
- Total share price growth was 156 percent higher for users of
business aircraft than for non-users.
- Market capitalization growth as measured by market value growth
was 496 percent higher for business aircraft users than for
non-users.
The study also points to a number of other noteworthy
connections between well-run companies and those that use business
aviation, including the following:
- Among Business Week magazine's 2009 "50 Most Innovative
Companies," 95 percent of the S&P 500 companies were business
aircraft users.
- Among the same magazine's 2009 "25 Best Customer Service
Companies," 90 percent of the S&P 500 companies were business
aircraft users.
- Among Fortune magazine's 2009 "100 Best Places to Work," 86
percent of the S&P 500 companies were business aircraft
users.
- Among the same magazine's "World's Most Admired Companies," for
2009, 95 percent of the S&P 500 companies were business
aircraft users.
- Among Business Week/Interbrand's 2008 "100 Best Brands," 98
percent of the S&P 500 companies were business aircraft
users.
- Among The CRO's 2009 "100 Best Corporate Citizens," 90 percent
of the S&P 500 companies were business aircraft users.
The study comes as NBAA and GAMA continue to highlight the value
of business aviation to citizens, companies and communities across
the U.S., through the two associations' joint advocacy campaign,
"No Plane No Gain." Launched earlier this year, the campaign
educates policymakers and opinion leaders about the essential role
of business aviation in the nation's economy and transportation
system.