Businesses able to quickly adapt to challenges during economic downturns prime their organizations for growth as the economy recovers. Smart business leaders use lean seasons to optimize their operations and outperform their peers.
We have not faced this level of disruption since the “Great Recession” in 2008. In the following years, researchers looked for patterns among the businesses that succeeded and the businesses that struggled after the financial crisis.
According to the National Business Aviation Association (NBAA), small to medium-sized companies that relied on business aviation were affected less by the downturn than nonusers. In fact, 69 percent of these companies posted greater top-line growth in 2008 and 2009.
The NBAA writes, “The financial results for large companies and SMEs indicate that for any size business, companies using business aircraft consistently outperform companies that do not in terms of shareholder and enterprise value created.”
Today, we face new obstacles brought on by the coronavirus pandemic. However, early numbers indicate that forward-thinking leaders drive the reawakening of business aviation.
First-time private aviation customers are up by 300 percent over last year, according to the Robb Report. It’s clear organizations see value in business aviation.
So, how could the renewed interest in private charter impact your business? Let’s take a look.
More Options for Charter Flights
As private aviation expands there are more options to charter, take part in membership programs like Skypass or utilize fractional ownership opportunities. More charter flights mean more options for businesses and more chances to take advantage of empty legs of charter flights.
Likewise, as a growing number of jet owners look to maximize their investment and recoup operating costs with charter revenue, businesses are able to reap the rewards. The democratization of aviation benefits everyone.
It’s not just Fortune 500 corporations that use private aviation. Small companies actually operate the majority of business jets. Nearly 60 percent of businesses that use private aircraft have fewer than 500 employees. Seven in ten businesses have fewer than 1,000 employees.
Low operating costs are no doubt helping the surge in business aviation. In 2020, the CARES act suspended a 7.5% federal excise tax (FET) on air transportation through January of 2021. Combined with lower than normal fuels costs, this dropped operating costs by about 15- 20 percent. Low fuel prices continue to help keep costs down for charter operators and passengers alike.
“Time is the new currency,” is often repeated in the business world. Charter flights give passengers the ability to make business trips that would otherwise be impossible due to time constraints. Driving directly to the tarmac, avoiding parking hassles and long TSA lines can be huge time savings for frequent travelers.
Many charter passengers also report that shorter, non-stop flights that return earlier improve productivity and reduce fatigue. Onboard, employees are able to use their time productively. Charter flights offer a quiet, comfortable environment to work or rest. Some passengers say that their time in the air gives them the opportunity to work with fewer interruptions and distractions than they would have in the office.
Closer to Your Final Destination
Commercial airlines continue to reduce flight schedules especially to regional airports in response to the decreased demand brought on by COVID-19. These schedule changes mean fewer options for commercial passengers.
Charter flights can take passengers closer to their final destination without time-consuming layovers. Business jets can land in more than 5,000 airports across the country while commercial airlines only serve about 500.
Long term, many experts believe new remote work capabilities will allow people to move out of cities. Regional cities could become more important than ever for business meetings. Charter allows you to access more destinations in less time.
In an age when data breaches make headlines, privacy is paramount. Modern business jet cabins have internet access and advanced communications technologies. Being able to work on sensitive documents or discuss proprietary information in private is a big benefit for many companies. Charter cabins can function as a secure office or a meeting space to maximize travel time.
Nearly one-quarter of all commercial airline flights are delayed and about 3 percent of all commercial flights are canceled. If you happen to miss a connection or be in an area with infrequent flights, options may be limited and your next day’s schedule could be impacted. Business charter offers predictability and reliability.
Health and Safety
Even as the COVID-19 vaccine continues to roll out across the country, experts still recommend social distancing. Maintaining a safe distance is easy with private charter. You can avoid crowded airports and drive directly to your terminal. When you fly on a business jet, passengers are limited to the people in your party.
Additionally, Charter operators like Omni Air Transport have been able to increase their cleaning procedures and COVID screening policies to protect passengers and crew. For many organizations, the health of leadership personnel is key to operations. Charter is a welcome option for those looking to minimize risk for employees.
Charter On Your Own Terms
There are many reasons businesses are turning to private aviation: time-savings, flexibility, privacy and health and safety, are just a few. As organizations look to streamline operations, it is clear that travel is one way in which businesses can increase efficiency. Business aviation will soar even higher as more companies discover the benefits of charter and take to the skies.
Learn more about private charter with Omni Air Transport by calling (918) 836-3131.