Sunday, February 15, 2015

An Overview of Corporate Aviation: Can it Save Your Company Money?

            If you are from Michigan you will remember well the bailout of the Big Three. You also may recall a headline news story that blasted the Big Three executives for arriving at Washington D.C. in private jets to ask for bailout money. Politicians seized the moment to lash out at the executives in order to show they were fighting for the average Joe whose tax money was going to be bailing out these hot shot high rollers. How dare they fly luxury jets and ask for money from hurting Americans! And for the most part the average Joe read the headline and listened to the politicians and scoffed at what he believed was blatant disrespect of and disregard for the working class. What the politicians and headlines did not tell Joe was that corporate aviation fleets are very practical and save time and money, all the while providing a competitive edge in a global industry.
            It is true that the face value cost of commercial flying is typically less than that of hiring a corporate jet or running a corporate fleet. However, what businesses can gain by using a corporate jet is invaluable. Time is money in business. Using a corporate jet greatly reduces time spent waiting at an airport where one has to worry about luggage and security lines. This is just one advantage of many that comes with flying corporate jets over commercial. The following is a list of benefits put together K.C. Dermody of the Sherpa Report:
  • ·     The loss of time is a major issue on commercial flights. From the long lines, potential layovers and the often longer trip to the airport as well as having to check in early. This can easily add up to losing hours upon hours of time that could have been spent more productively. In addition, security delays can not only be a huge hassle, they can cost more time as well.
  • ·      Passengers have to find a flight that fits in with their schedule or can be forced to alter their calendar to fit in with the airlines.
  • ·      With crowded seating, there is little space to conduct business and even less privacy. If you had hoped to conduct a meeting or negotiate a deal in private, other passengers and crew are likely to overhear those conversation s.
  • ·      Commercial airlines offer little in the way of amenities. Today, food and beverages options rarely include much more than a drink and a bag of pretzels. First class is better, but you still get what you get.
  • ·      The risk of lost luggage with passengers separated from their bags is another issue when flying commercially.
  • ·      You'll avoid the inconvenience of the liquid bans that come with flying commercially.
  • ·      You can travel with special belongings, business samples, sports gear, instruments or even bring you pet into the cabin if you so choose.
  • ·      You'll not only have more time to conduct business, you'll have more time to spend with your family and friends by reducing the hours you spend traveling.
  • ·      Flying on a private jet projects an image of success. You'll be seen as an individual or organization that is well-run, efficient and can afford to fly privately (para. 5-10, 2013).

This lengthy list does not include all of the benefits provided by corporate jets, but I believe it is clear to see why they are invaluable to the success of an organization.
       Walmart is a great example of a large successful organization that enjoys massive benefits from an organization run aviation department. From pilots to aviation safety managers Walmart has it all, including a fleet of 20 corporate jets based out of Rogers, Arkansas. To give you an example of what a corporate aviation job may entail I have listed the job requirements from an open position in Walmart’s aviation department. They are as follows:
Position Type
Salary
Shift
0
Position Description
·         Acts a liaison for other country aviation department Safety Management Systems Programs
·         Demonstrates up-to-date expertise in aviation safety and applies this to the development, execution, and improvement of action plans
·         Establishes safety and security objectives
·         Manages the development and maintenance of safety awareness program
·         Models compliance with company policies and procedures and supports company mission, values, and standards of ethics and integrity
·         Provides and supports the implementation of business solutions
·         Serves as an advisor and consultant on aviation safety and security


Minimum Qualifications
·         10 years operations experience in safety risk management as a Flight Deck Crew Member, Aviation Manager, or related field.


Job Role
Manager Safety-Aviation
Location
ROGERS

As a management student myself, hiring in as a safety manager would be a great job were I to choose a career outside of commercial aviation. This is just one job of many that corporate aviation offers. Corporate aviation provides the same types of careers that commercial may provide, albeit the number of jobs available is smaller.
      In summary, corporate aviation is a growing business that is invaluable to the success of an organization. For those of us in the aviation industry it provides many opportunities if a commercial job is not what you are looking for.







Bibliography
Donnelly, B. (2013, May 13). Comparing private jets to commercial airlines. Retrieved February 15, 2015, from http://www.sherpareport.com/aircraft/aircraft-overview/comparing-private-jets-commercial-airlines.html
Levin, A., Litvan, L., Dudley, R. (2013, August 14). Wal-Mart air fleet gets taxpayer support for controllers. Retrieved February 15, 2015, from http://www.bloomberg.com/news/articles/2013-08-14/wal-mart-fleet-gets-taxpayer-support-to-pay-controllers
Levs, J. (2008, November 19). Big three auto CEOs flew private jets to ask for taxpayer money. Retrieved February 15, 2015, from http://www.cnn.com/2008/US/11/19/autos.ceo.jets/

Walmart. (n.d.). Manager safety aviation jobs in rogers at Walmart. Retrieved February 15, 2015, from http://jobs.walmart.com/rogers/aviation--travel/jobid5502986-manager-safety-aviation-jobs

4 comments:

  1. Joe, I'm sure there are plenty of great management positions for very large corporate aviation departments (such as Walmart Aviation). I noticed the position you mentioned required a minimum of 10 years experience. Do you know of any corporate aviation management positions available to recent graduates? I'm sure working for Walmart's aviation department would be quite the accomplishment on a resume.

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  2. You have an extensive list of advantages to corporate aviation, similar to what I found in my own research. I would have liked to find actual dollar values attached to bring home how valuable a corporate flight department can be.

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  3. I like what you said about traveling with sports gear. Can you imagine what it would be like if a sports team had to travel via the airlines and check all of their sports gear and then wait for it all to come out at the baggage claim after the flight? I would imagine that some of the equipment would often go missing or get lost too. I think that advantage in itself is a huge plus for business aviation.

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  4. You did a great job illustrating how important the corporate aviation sector is. They are a valuable asset to businesses in stark contrast to commercial airlines. Im sure you'd be great safety manager.

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