I have been giving some thought to the recent brouhaha about the old Speaker of the House using the Air Force for travel needs and the new Speaker of the House indicating that would not happen and that the new Speaker would be taking commercial flights like the rest of the citizens. I am not sure how this can be safe when a potential person who may be the President of the free world would be traveling with the rest of the country in economy class.
Perhaps the privatization of the travel is in order. We have been doing business travel for many years and have become pretty efficient with this type of travel. We can have the competition of working to be most cost effective and being the best company to provide this travel. This takes out of the equation the excess we see with $400 hammers and $1000 toilet seats we see in the military, and creates jobs and other economic benefits for the country.
I doubt this will ever actually happen and frankly the security issues and the other things that would come out of it have not been thought about on my part. I merely believe it would be good for the private jet industry to have this shot in the arm. I know that this is always going to be an issue with travel by our politicians just as it was an issue with the car maker CEO’s during the buyout. What do you think about Speaker of the House traveling around in that latest Citation X?
There is a man down the street from my house that has the best looking garage in the neighborhood. He has one of those special floors that is painted with that special speckled paint and inside that garage is a couple of the family cars. Those cars are the best kept cars I have ever seen. The are always washed, always clean inside, and I got a peak under the hood a few times when speaking to him and the engines look like the day they came off the showroom floor. Those vehicles are the pride and joy of their owner and they would be the best vehicle to buy no matter their age. The point of the story is your private jet can also be the best buy no matter their age if you maintain them like my neighbor does his vehicles.
There are plenty of maintained private jets on the market. They have been kept up to date with all of the minimum requirements under the regulations. They never go above what the regulations require but they have been “maintained”. The business aircraft or the private jet that has been cared for properly will be the best aircraft on the market and will carry the best value. Meeting just the minimum requirements will keep your records up to date and will pass any inspection, but give me the private jet that has been cared for like the neighbor down the street. The aircraft that is always cleaned and polished, the one that has all the best of equipment that can be installed, all records of maintenance and well kept records as well as damage and repairs. All of this well done and well maintained principles make these aircraft carry their value and exceed most baseline values of other aircraft. Make sure you care for your aircraft and it will care for you when it comes to time to sell. Which business aircraft or private jet would you put at the top of your list?
As a company that buys corporate jets, sells corporate jets or overall is just interested in the business of corporate jets, it is not going to come to anyone’s surprise that we thing people should be taking a private jet on any trip or travel that they can. We wold love to see nothing more than to see a jet in every hangar (I wonder if that will ever be in a political speech?). For us to tell people why they would like to own a private or corporate jet carries with it the stigma that we have an ulterior motive. The way around that is to take a few reasons for traveling via corporate or private jet from the people that actually use that mode of transportation. Business Jet Traveler recently posted an article on why some travelers take private jets on trips. I think these are some great testimonials as to why business travel could be best served on a private or corporate jet.
I was especially warmed to the idea that Arnold Palmer wanted to use a private aircraft for family reasons:
“I couldn’t have done many of the things I did without a business airplane. It afforded me the opportunity to be home with my family and at the same time accomplish the things I had to do to make my business and career successful. Whether you fly your own or hire a crew, a business jet far outperforms any other mode of transportation.” ~ golf legend Arnold Palmer
Obviously, he had the ability to travel quite a bit in his career and being able to make your own schedule that allowed him to spend time with his family was a crucial reason for the investment. Not having to adhere to commercial schedules and their mandated times of departure and arrival was a big component of why it was a good way for Mr. Palmer to travel. Having just spend much of the month of October and last week in an airport, I would love to have made my own hours and made the schedule I needed that worked best for me.
I may have talked about this in a previous post but it bears repeating. Being someone that needs to be somewhere important at a specific date and time is crucial to success. F. Lee Bailey put it in better words when he said:
“The productivity of the people at the top determines how many jobs there are for people not at the top. And when a guy misses an important sales meeting because Delta Air Lines had a mechanical [problem] at Kennedy and it reverberated across the system and he winds up in Chicago in a fleabag hotel while the meeting’s going on in Tucson, the [corporate] airplane pays for itself.” ~ attorney F. Lee Bailey
Having been that guy in the fleabag hotel once while I should have been somewhere else I can assure you that is a helpless feeling and one that I never again want to experience.
Reading through some of the other reasons for travelers to take private aircraft in the article you can get a sense for the reasons why those that are using business aircraft to conduct business, are at the top of the game or well known experts and celebrities in their industries. They know when to cut corners and they know when spending a little extra on something that might seem extravagant makes them ahead of all of the competition.
It seems that airport safety is getting better and has been for several years. The FAA reported today that there were fewer incidents on runways this year by 50% year over year. The FAA statement indicates:
U.S. Transportation Secretary Ray LaHood and Federal Aviation Administration (FAA) Administrator Randy Babbitt announced today that the number of serious runway incursions at the nation’s airports dropped 50 percent from 2009, the second consecutive year that the number of serious incursions was cut in half.
“We continue to make terrific progress in the area of runway safety and the credit should go to the entire aviation community,” LaHood said. “I’m thrilled that we’ve further reduced serious incursions, and I look forward to additional improvements in the years ahead.”
“The goal we are working towards is zero runway incursions,” Babbitt said during a press conference at Boston’s Logan Airport where he highlighted runway safety technology. “I’m confident that the right combination of education and technology will help us get there.”
The number of serious runway incursions at the nation’s airports dropped from 12 in fiscal year 2009 to six in fiscal year 2010, which ended on Sept. 30. Today’s announcement reflects a steady, significant improvement in runway safety over the last decade. In fiscal year 2000 there were 67 serious runway incursions. Of the six incursions this fiscal year, three involved commercial aircraft.
Several years ago the FAA launched an intensive effort to improve runway safety. That effort included the expedited installation of new technology at airports, expanded requirements for improved signage and markings at airports, and improved pilot training on runway conflict scenarios. Since then, the FAA and pilot groups also have conducted extensive outreach and training for general aviation pilots.
During the press conference, Babbitt announced that the Runway Status Lights system at Boston’s Logan Airport has completed a successful testing period. The runway safety system gives direct warnings to pilots of potential runway incursions or collisions through a network of red lights that are embedded in the airfield pavement. The lights warn pilots when it is unsafe for a pilot to enter, cross or proceed down a runway. Pilots must stop when the red lights are illuminated and may not continue without clearance from air traffic control.
The new technology, which is also being used at Dallas/Ft. Worth, San Diego and Los Angeles, was successfully tested for 90 days at Boston. The FAA partnered with the Massachusetts Port Authority (Massport) to install the system. The FAA funded the design and development of the system, as well as the equipment. Massport paid for the installation of the airfield lighting equipment.
Runway Status Lights systems are scheduled to be installed at 23 airports across the country beginning next year.
Technology it seems is making our lives easier to handle and it seems it is also making our lives much safer as well.
I am a big advocate of the technology world. I run in circles that believe that technology and specifically applications and software are what will fuel our next economy. When I see things that talk about applications and technology I tend to pay attention. Something that is a hot item in the world of mobile phones is Plane Finder. AIN recently reported that the application that costs the user $2.99 from a UK based company is all the rage. It was reported:
[the application] displays aircraft transmitting ADS-B Out signals–and only ADS-B–in a user’s geo-referenced area, whereas Pinkfroot’s planefinder.net Web site shows ADS-B-equipped aircraft across the world moving atop various map backgrounds, including Google Earth. In the iPhone and Android apps, touching an aircraft brings up its ID, type, operator’s name, altitude, groundspeed, heading, route and its manufacturer serial number, in addition to clickable pages of other information. While this is pretty straightforward database information, the clever twist is augmented reality, where pointing the mobile device’s camera at a visible overflying aircraft integrates the smartphone’s GPS position with the aircraft’s altitude and its ADS-B’s GPS position to display its bearing and distance, as well as the same full data block. Spotters are thrilled; not surprisingly, homeland security officials aren’t.
I would say that homeland security might be very interested in the use for this application to say the least. I would also think that those paparazzi that are tracking celebs might also find a use for the aircraft finder for their own “research”. Finally, I would be interested if this application might also be used by corporate espionage to find out what planes are flying to what places and landing at what times times to determine when meetings are held, where executives are going and when. All information that could be assisted with the pointing of your iPhone at over head aircraft.
I was reading an article recently in Business Jet Traveler that said corporate jets are analogous to time machines because they save business travelers time that would normally be spent in normal business channels. Business jets can also afford you a more productive tool for getting work done while in transit. The article came up with eight ways that you can better use your time while flying via a business jet:
- Meetings in a secure environment;
- Make your clients feel special;
- Provide a seat to someone;
- Flying where you need to go;
- Use your time for other things; and
I like the ideas that they talk about in the article but as someone that has flown quite a number of times in the last few years I can see some of the little things that are also important that could help you save time. I have waited to check-in to a flight in long lines that cause me to stand pulling the luggage along while trying to do some work on my mobile phone. I have had flights delayed due to passengers that have had problems or issues, and I have sat on a runway tarmac for unruly periods while they figure out why a light bulb is blinking. I have had problems with technology not working because I ran out of AC power and I wished I could take care of some phone calls while in flight.
These are some classic examples of what can be done on a business jet but could not otherwise be performed. Time is money in most businesses and your time is especially important. Adding time to a business trip can make the difference when your company is trying to compete or if you are trying to meet some company goals. Business jets are a secret weapon of sorts or in the case of the business traveler, they are a time machine. This may translate into a money machine.
Operation Skyshield will have its 50th anniversary tomorrow on September 10, 2010. Only the World Trade Center attacks has resulted in the entire North American continent being shut down to all aircraft since the tests that were run by the U.S. and Canadian governments in Operation Skyshield. In an attempt to test the effectiveness of air defense systems, all aircraft were first grounded on September 10, 1960. The governments did this as merely a test and those results have never been shared. The operation was one of the largest air drills in aviation history and has not been done but three other times in the 60’s. Today’s air traffic is much more exponential than it was in the 60’s which would cause much more difficulties as a result. No other drills have been conducted in modern times.
I wanted to highlight the fact that we take for granted the “no frills” flights of commercial airlines and many people only dream of being able to have the best possible experience with first class flights, if they can afford what that ticket will cost them. I get a chance to see first hand some of the interiors of corporate jets and they are far above anything that even first class commercial flights can provide. I was reading recently at AirlineTrends.com that Virgin America is stepping up its game with in flight entertainment or “IFE”. The article states:
Virgin America has upgraded its ‘Red’ in-flight entertainment system with a number of innovative features, including the first ever seatback digital shopping platform, an open tab service, and Google Maps with terrain view. Already on Virgin America, passengers can use the IFE system to watch live satellite television, chat with other passengers, play 3D games such as Doom, and offset carbon emissions for their flight. Passengers can also purchase snacks, meals, and alcoholic beverages from their seats via Red. Flight attendants receive the orders via a tablet PC and bring the ordered items to the seat.
I love that commercial airlines are trying to make the experience of flying that much better for those that don’t have the use of their corporate private jets. I wonder when we will have headsets with a virtual screen where we can wear a helmet and get the feel of flying in a Gulstream or a or that Dassault Falcon while sitting in the back of the plane listening to soft music while the child behinds us screams because their ears hurt. Until that time, I will let companies like Virgin America try to keep up with the world of luxury flights.
Many people ask what the options are to more traditional travel of commercial airlines. We know that on a commercial airline flight there are different classes of travel, be it coach, or business class or first class, but what are the options if you want to fly via a private jet? There are 4 options outside of commercial air travel that should be discussed. The options are listed as:
Each of these four types of corporate travel come with their own unique opportunities but none of them can be argued as the best option than outright ownership. I listed private ownership as the top spot here because that is what makes most sense if your travel extends beyond those of normal passengers in the business sector. I like the chart and discussion that was put together in the Wheels Up article written by Jeremy R.C. Cox. This is a great analysis of four types of of corporate travel listed above. He has listed out the annual costs associated with each option by using a Cessna Citation X and the Pilatus PC12. The Cessna Citation X is becoming one of my favorites in that category and it was interesting to note his analysis using that model.
The conclusions drawn by Cox in the article state:
“The Magic Formula: After analyzing the numbers listed above, you will see that there is a magic formula that comes in-to-play when you are deciding whether you should rent, or lease, or own. In this case we learn that you will have the lowest operating cost, per flight-hour ‘overall’, if you own your aircraft when your annual utilization is above 240 hours of flight-time.”
Having this type of analysis is crucial to the process of determining your own type of corporate or personal private jet usage. The analysis includes other costs that are not necessarily included in this formula such as your region, the type of travel you are doing and the Direct Operating Costs (DOC). This can be discussed at the time you decide on your own corporate jet purchase.
I was reading an article sent by a friend that indicates that studies have shown that corporate jet use is up and the month of June showed the increase as well. That means more and more companies are using their corporate jets for more travel and I am sure that personal use is up as companies and their executives use the aircraft for personal use associated with vacations. This increased use of the aircraft also means a possibility that you will have a higher maintenance budget. If you have budgeted for an amount certain for 2010, and that amount increases at all that may mean that your business aircraft or private personal jet may now be up for an inspection and those costs will be added to the yearly maintenance budget.
If your usage of your corporate jet increases over the year and it changes either your maintenance schedule or inspection, this can have a large effect on the annual budget you have for the use of that aircraft. You need to stay on top of that usage and the budget associated with the use so that it will not change your bottom line at the end of your fiscal year. Keep someone on top of the business use and the personal use and keep up to date with the maintenance of your aircraft. With the use of corporate jets increasing for both the business use and personal use it may be marking another indicator that the slide is over in this industry. It is good to hear that corporate jets may be on the rise.
