Corporate
Aviation
Corporate
aviation, also known as business aviation is the use of any “general aviation”
aircraft for business purpose. So what does this mean for us as pilots? It
notes a major difference from air carriers like the airlines and non-business
general aviation. Career paths in business aviation are orientated with the goals
and needs of a specific smaller company and not focused on the general public
needs.
Working
in corporate aviation provides opportunities to become “on call” pilots, only
flying when needed. It also means flying to nontraditional locations normally
not serviced by the airline. The easiest way to think of what career options
are available is to think of what the company business focus is. Survey
flights, medical transport, disaster relief are some of the aspects of
corporate aviation all not available to the airlines.
With
all these specialties, the question has been asked; does corporate aviation
actually save money? Is it worth the time? This question has been around as
long as corporate aviation and unfortunately, it has some merit to it. People
tend to think of corporate aviation as business men in suits and ties, flying
to meetings to sign paperwork or taking the company jet down to Hawaii instead
of using traditional air carriers. One of the largest culprits of this was the
Big Three CEO’s all flying to Washington in separate luxury jets to ask for
bail out money from congress back in 2008. It was estimated that each flight
cost around 20,000 dollars and enraged the public.
So
why does corporate aviation still exist if all it does is burn up money? The truth is; corporate aviation does save
company time and money. First, let’s take the aforementioned example of the Big
Three and learn from their mistakes. CEO
from Company A needs to meet and finalize a deal with Company B. Company B is
located in Nowhereville Texas, the closest major airport is over 100 miles away.
Using the airlines, he books round trip tickets for himself and staff ($2500),
rents two cars for him and his staff ($500) and has to spend 2 nights in a
hotel with gas and food ($1000). This trip cost the company $3000 and took
three days to finalize. Now let’s look at Corporate aviation. The CEO and his
staff fly the company plane down to the local airstrip, 5 mins away from
Company B and fly back the same day, cost of the trip, $500 in fuel for the
plane and 1 day. Corporate aviation is a business tool and must be used
properly.
The
ability to put people or things where you need them quickly has been the
driving force behind corporate aviation. Doctors can’t put a heart transplant
on a airliner (Have you seen what baggage handlers do?), miles and miles of pipeline
make it impossible to do a driving survey while potential leaks spill out into
the environment, and emergency repair crews and technicians can keep any
airplane running and on time if they can be flown to the plane instead of
having it be trucked back to a repair facility. In the business world, time is
money.
I
looked at Pentastar Aviation, to see what their business model and practices
looked like. Since they cater to part 91 and part 135, I looked into their
medical transport division. The Survival flight division is based at the
Livingston County Public Safety Complex. The 77,000 square foot facility houses
the Survival flight crews and their aircraft. Pentastar partners with the
University of Michigan Health Systems, Michigan Hospitals of Trintiy Health,
and Sparrow Health System for all their medical transport needs. They utilize
three EuroCopter 155’s and a Cessna
Citation Encore, all specially fitted and medical transport vehicles. After
talking with some of the pilots and flight nurses, I found that that Pentastar
give preference to military aviators especially those with combat missions. The
high stress of being a survival flight pilot requires a lot of experience. All
the flight crews have to be certified nurses or specialists in a medical field.
While the exact hiring policies were not discussed, pilot turnover rate was
considered high and rotary wing experience is highly sought after.
Corporate
aviation is all about finding the right tool for the job. If it is abused, it
costs you money and makes the overall aspect look unnecessary. If it is
utilized correctly, business aviation can only be seen as “the unfair advantage”
-Forbes
References:
Business
Aviation
Big
Three Auto CEO’s
I agree - the big three flying to Washington did not help the reputation of corporate aviation in any way.
ReplyDeleteThat is a real good breakdown of the cost of not flying. There is even more hidden cost that can be added to that too. Lost time because of travel delays means an immeasurable amount of revenue loss.
ReplyDelete