Study: Private Jets Remain a Crucial Resource Even in “Down” Times
Talk is growing throughout various media outlets and among Wall Street insiders and pundits of a possible economic downturn in the United States within the coming year. With memories of the last devastating global recession still fresh in the minds of most business leaders and entrepreneurs, this may seem the time to consider scaling back on plans to use private jet travel.
However, lessons learned nearly a decade ago indicate the exact opposite is true.
A few years ago, the National Business Aviation Association (NBAA) – the largest trade and advocacy group for companies and individuals operating business aircraft in the United States – commissioned the respected global research firm NEXA Advisors to study how companies among the Standard and Poor’s S&P 500 ranking of the companies offering the highest value to their shareholders utilized private jet travel during the height of the Great Recession. The results were actually quite surprising.
Successful Companies Continue Flying Private Jets
The study determined business aviation users represented 84% by number and accounted for 96% of the total revenue of S&P 500 companies in 2011. Seventy-four percent of the companies added to the S&P 500 between 2007-2011 continued to use private jets during the recession, while a significant number of companies dropped from the S&P 500 from 2007-2011 were those that did not utilize business aviation for their travel needs.
Even the researchers admitted their findings seemed “counter-intuitive,” given the prominent narrative at the time that business jets represented little more than wasteful excess. However, numbers don’t lie – and the study concluded “companies that use business aviation are among the best-managed in the United States; they outperform their competitors in key financial and non-financial metrics; and these same companies are leading the nation’s economic growth both in profits and creating jobs.
“Our results confirm that companies using business aviation in the S&P 500 mitigated revenue losses and recovered more quickly than non-users,” the report stated – a key indication that businesses using private jets held a competitive advantage over those that didn’t and offered greater returns for their shareholders.
What This Means for You
That’s great news for companies already utilizing private jets, of course – but are these findings relevant to individuals who also use private jet charters to supplement their own travel needs? The answer is an unmistakable YES!
Those who understand the value of their time and the importance of safe and secure travel also know that private jets allow them to be more productive, by utilizing their time more efficiently and arriving at their destination faster, less fatigued and better prepared for whatever tasks lay ahead.
That said, in many ways, private jet charter clients are optimally positioned to benefit from market conditions during a recession, as more operators make their aircraft available for charter to offset their costs. This also provides additional options for owners that may opt to sell their aircraft, yet still need supplemental lift when necessary. Other clients turn to charter or debit jet card options for additional flexibility.
Simply stated, an economic downturn doesn’t mean you should abandon the best travel option for your business and personal needs. Contact a professional private jet charter expert today to assist you in further optimizing your travel needs, matching you to the most efficient and cost-effective aircraft for your mission requirements.