Are Private Jets Bad For Business?
Posted by Kevin Lippert
With all of the demonizing from congress and the media of the private jet industry, one may begin to believe that the businesses and individuals who fly on a private jet are living over-the-top. Who decides this?
Now with all of this attention, private jet owners, businesses and charter clients seem to be hanging their heads low, no one wants to be 'that guy' on the nightly news.
The private jet industry had experienced a sever backlash due to the misunderstanding of the value of private aviation. Some businesses are down up to 40 percent and several companies are laying off workers due to the decreases in their business. This cannot all be blamed on the media and congress, but the rhetoric has contributed.
Let's look at the value of private jet usage. About 85 percent of passengers on private aircraft are small and medium sized businesses, according to the National Business Aviation Association (NBAA). Business owners understand the value of time efficiency, with private jet travel starting at around $2,000 per hour, it must make sense. And with a short 1 hour flight one way and back on commercial airline taking the whole day compared to about 2:45 on a private jet, it make sense.
Certain business expenses are worth the extra cost, especially when the cost is returned in the form of a more productive day. Let individual businesses make their own decisions and don't demonize them for how they spend their money.