Business Aviation Pays Off!
According to Aviation Week & Space Technology and a study sponsored by NEXA Advisors, LLC, the S&P 500 companies who use company and chartered aircraft outperform their competition by significant margins. (See the entire article in the September 7, 2009 Aviation Week & Space Technoloygy.)
The impressive difference between companies using business and charter aircraft and those who don’t are highlighted by these figures:
Average ROE: 19.5%- users vs 16.2% non-users
Net Income Growth: 19.4%- users vs 12.9% non-users
Market Value Growth: 8.4%- users vs 4.3% non-users
This study mirrors a similar study done by NBAA and GAMA eight years ago conducted by Arthur Andersen and is welcome verification that aircraft are tools, not toys.
Business aviation has been under considerable pressure due to the downturn in the economy, ill-considered and unfounded political hostility, and the pile-on effect of the chattering idiots in the general media. As a consequence, many company’s have placed their aircraft up for sale and have chosen more costly forms of travel rather than suffer unwarranted attention from the uninformed.
In point of fact, not only are business aircraft cost effective when evaluated for many employee travel requirements and costs but user/non-user comparisons show that management smart enough to recognize the value of aircraft in business are successful overall. Cold hard cash examples abound for specific applications, however many benefits of business aviation are intangible and can only be verified by studies such as the NEXA study.
