ASK THE EXPERTS
The jet set
Are corporate aircraft charters a commercial imperative or pure self-indulgence?
pairs not connected by point-to-point commercial flights. As these represent 31 per cent of total city pairs analysed, nearly one connection in three would not exist without business aviation, according to the European Business Aviation Association (EBAA). In addition, across all European point-to-point flight routes, business
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aviation flights save an average of 127 minutes, when compared with the fastest commercial transport alternative. Factor in the value of the time saved by checking in just before take-off and the flexibility to return as required, calculated on executive salaries, the commercial imperative is evident. BBT talks to an entrepreneur, a TMC and a consultant about use of chartered
flights. Is there a sound business case or is it just toys for the boys? Our experts share their opinions on private aviation’s role, impact and effectiveness.
THE ENTREPENEUR PETER DE SAVARY, international entrepreneur and hotelier
THE REASON FOR USING AIRCRAFT CHARTER falls into two cate- gories: pleasure and convenience, and business efficiency. It is more difficult these days to fly commercially than it used to be: delays at the airport, so many people travelling, security, weather, checking in so far in advance. The use of chartered flights is time-saving, less frustrating and less stressful. Commercial travel is a hassle and is often not convenient, as departures
do not allow you to fit two meetings in a day, so you have to stay overnight. With a chartered flight, you can leave and come back when you want, which allows you to pack in a lot more work and to avoid staying overnight. Milan is a good example. If you want to have a meeting in the morning,
have lunch with somebody and have a meeting in the afternoon, it’s quite a stretch to do that in a day and be ready for work the next morning, especially if you don’t live close to a major UK airport. In a private plane, you don’t have to get to the airport two hours beforehand; with a 7am take-off, you can arrive at 6.45am. You land at around 9am in Milan, you have the whole morning in front of you, then lunch and afternoon meetings, and by 5pm you can get back on the aircraft. You’ve done a full day’s work and can get home in time for dinner, see your family and be fit for work the next morning. In addition, if you are going to places that are far from a major airport, with
a chartered flight you can head for one of the smaller airports, which have immigration and customs facilities, and avoid the extra travel. The cost has come down with the new generation of lighter, smaller jets,
which are ideal when there are only two or three of you travelling. Further- more, you can talk freely, whereas on a commercial airline, you are unlikely to discuss confidential matters when people sitting in front and behind can overhear you. I still use jet charter for business and find it very effective.
50 BBT May/June 2018
USINESS AVIATION still has a perception problem. Seen by critics as a flagrant self-indulgence designed to boost executive egos, it is pilloried (or expected to be) to the point where com- panies that use it keep quiet about it. The realities, however, are different. Business aviation in Europe serves 25,280 city or area
THE TMC ADAM KNIGHTS, managing director, ATPI
CORPORATE JET HIRE IS EXPENSIVE and whatever people say about it being “affordable” normally depends on their perspective. The eco- nomic climate in recent years has pushed execu- tives of all companies to look at travel policy and associated expenses very carefully. In this econom- ic environment, travelling in a corporate jet now requires a significant justification in terms of ROI. We book corporate jets when senior executives
need to be in a number of places over a relatively short period of time, often when a deal is being completed or they are attending a series of meet- ings in different countries. In that case, particularly if the locations are outside large traditional airport destinations, a corporate jet might become a viable option. Typically, we find that this type of booking is of an ad hoc nature and there is rarely a written policy for such a requirement. There are cheaper options for corporate jet hire,
for example when charter companies advertise seats on an empty leg at heavily discounted rates, making it highly competitive. However, these are rarely taken by executives because the rationale for using jet charter normally involves a return journey. We believe this market could represent a cost-effective alternative for senior executives in a managed programme who would normally be authorised to travel business class. In our experi- ence though, executives are generally happier to maximise their frequent flyer points and like the routine of their standard programme. We book corporate jets in the superyacht and
sports sectors and for high-net worth individuals in the leisure sector. Typically, people in these categories use corporate jets for privacy or for logistical benefits. For example, domestic football teams increas-
ingly use them in the UK. Previously, they might have used a coach, but a private plane is worth the premium because players get home earlier and fresher, and are able to play at their best a few days later. This has been driven by an increase in mid-week games and competitions, adding to the pressures on time.
BUYINGBUSINESSTRAVEL.COM
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