The media and general public may not understand the value of private aircraft, but successful businesses do. Private jets are not for show and comfort. Rather, they are an important — often indispensable — tool in the battle for business, especially as many companies are fighting their way out of recession.
Frequent business travelers say private aircraft offer several advantages.
- Save time and money
- Increase productivity
- Provide more time to spend with family
- Reach numerous destinations quickly
- Eliminate common safety issues associated with commercial flights
Better efficiency, better business
Even beyond these practical advantages, private aircraft deliver measurable ROI for the businesses that use them. According to the study Business Aviation: An Enterprise Value Perspective — The S&P 500 from 2003-2009, private airplane users outperform non-users in revenue growth, profit growth and asset efficiency.
The study demonstrates that, compared to non-users, private aircraft users
- see 116 percent higher average annual revenue growth
- realize 434 percent higher annual earnings growth
- average 81 percent higher annual earnings before interest and taxes
- see 496 percent higher market capitalization growth
Whether before, during or after the significant decline in the business aviation market in 2008, business jet users substantially outperform non-users in nearly every analyzed financial category.
Jet market continues to rebound
Business executives who understand these advantages continue to invest in private aircraft. The private jet industry has certainly experienced its share of turbulent weather during the recession and the slow, ongoing recovery. However, many experts believe the worst is behind it, according to a May 2011 New York Times report.
In the report, Richard Aboulafia, an aviation analyst at the Teal Group in Fairfax, Va., says, “The overall market has stopped falling, and 2011 deliveries are likely to be about level with last year. For next year, leading indicators are pointing to renewed growth, with the pool of available aircraft in the used jet market shrinking, although prices for used planes are still soft.”
The New York Times report also notes that typically, as recovery sets in, returning buyers first hunt for bargains on pre-owned planes and then start to look at new models. Experts at L&L suggest that if you will be in the market for a pre-owned jet soon, you might begin looking now.