BUSINESS AVIATION
PRICING UP In reality, there are numerous moving parts of each and every aircraft charter, making it difficult to quote a single rate or compare fees directly with commercial travel. The value is related to time saved along with convenience, discretion and higher productivity. An average C-Suite executive’s time is worth around £4,000 an hour by Fortune 500 standards. A two-hour flight could arguably “cost” a minimum of £16,000- worth of their time, if you factor in one hour either side for travel, including check-in. Flying privately gives executives more of their valuable time to spend on their work. PrivateFly’s Twidell cites the example of a client who works with several partners in France. In a single day the senior executive had three meetings in different locations; a 7.30am breakfast in Paris, an 11.30am site visit in Reims, then a meeting with a manufacturer
FOR
SOME LARGE CORPORATES, IT’S STILL A SENSITIVE ISSUE
in Strasbourg at 2pm before heading home to Amsterdam for 5pm. By flying from dedicated business aviation airports, eating during the flight and holding a 2pm meeting in Strasbourg, the executive was back home by dinner time. “The cost of the flight was £10,500 in a small cabin aircraft. Using commercial airline services would have required at least one overnight stay and another whole day out of the office,” says Twidell. “While the cost of a private charter is higher than airline travel, when you factor in the costs of overnight stays and a day away from the office plus the stress and disruption of commercial travel as well as time away from family life, many clients will see this as a justifiable expense.”
BREAKING BARRIERS While clients may see private aviation as justifiable, how many travel buyers would
confidently advocate its use? ACC’s Smith says his company recently exhibited at the ITM Conference, and there is now a focus “on long-term engagement to get networked in, to show what ACC is”. ACC is growing its business with office expansion planned in New York, Kuala Lumpur and Addis Ababa. “We do try to engage with
people… but it’s either accepted as a mode of transport or it’s not. We’re there to support those who have the need, not convert them,” he says. “For some large corporates,
it’s still a sensitive issue. Culture comes into it – everyone needs to see it as a powerful business tool, something that makes teams effective. There are some cultural blocks in some organisations,” he adds. Whatever the perception of private jet charter, there’s a growing demand for this niche service from top executives and that will, no doubt, continue.
387,000
the number of reportable commercial flight delays in Europe in 2017
SOURCE: EUROPEAN COMMISSION HOW TO WORK WITH A BROKER
• Do your homework, think about all your requirements so your broker can find the best
• Work with an accredited charter broker company for peace of mind and a stress-free experience.
possible option for you.
• Build trust and a good rapport with your charter broker – relationships matter.
• Search and book as early as you can – this will give you the best options at the best price.
buyingbusinesstravel.com
• Seek explanation from your charter company – ask them why this is the best option for your business.
• Check the required documents are available; at a minimum ask to see the operator’s AOC.
• Always ask questions. A good broker will be happy to provide you with all the information
• Don’t search far and wide; you will just waste your own, and the broker’s time, as operators see the
and answers you need.
• Read the charter agreement, terms and conditions and invoice thoroughly – additional
same request from multiple sources. They may then freeze the price, blocking your broker from negotiations.
• Seek transparency in the charter process – ask if you don’t understand the charges.
charges may apply so check, eg, de-icing fees in winter, wifi and connectivity charges.
2019 JULY/AUGUST 67
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