In fact, many CEOs assert that the use of business aircraft is paramount to their company’s success.
Leadership teams utilizing business aircraft havethe ability to; visit clients and attend meetings quickly, improve efficiencies by working Enroute, reduce travel time and complications, travel to remote locations not serviced by commercial airlines, evacuate unstable environments more quickly and overall enjoy an improved quality of life.
In addition, business aviation provides greater safety margins for business travelers who can communicate directly with flight and maintenance crews and be involved in decision-making.
Whether a company is involved in direct aircraft ownership, fractional ownership, management, charter or a variety of supplemental lift operations, business aviation provides significant benefits over auto, rail and airline travel.
I could go on-and-on … however, I’d rather share some interesting statistics compiled by NEXA Capital Company, in conjunction with NBAA.
The following data shows a significant correlation between top-rated companies and business aircraft usage.
Based on a 2012 report, the best performing companies appearing on several “Best of” lists (including the S&P 500) in 2012, reveal a remarkable correlation with business aircraft use.
The Best of the Best use business aviation
- Among the “50 Most Innovative Companies,” a compilation produced by BusinessWeek, 30 S&P 500 companies made the list. Of these, 100 percent were business aircraft users.
- Among the “100 Best Places to Work,” a compilation produced by Fortune, 32 S&P 500 companies made the list. Of these, 91 percent were business aircraft users.
- Among the “25 Best Customer Service Corporations,” a compilation produced by BusinessWeek, 8 S&P 500 companies made the list. Of these, 100 percent were business aircraft users.
- Among the “100 Best Brands,” a compilation produced by BusinessWeek, 48 S&P 500 companies made the list. Of these, 96 percent were business aircraft users.
- Among the “50 Most Admired” companies, a compilation produced by Fortune, 43 S&P 500 companies made the list. Of these, 95 percent were business aircraft users.
- Finally, among the “100 Best Corporate Citizens,” a compilation produced by The CRO, 98 S&P companies made the list. Of these, 94 percent were business aircraft users. [i]
A single share of common stock represents a partial ownership stake in a publicly traded company. Market capitalization is an important metric when determining the relative shareholder value of companies.
Key Drivers of Shareholder Value
Another very telling measure is the return to pre-recession levels of employment. A resilient company will firm up its workforce and return to hiring new employees. The graph below shows companies using business aviation were more resilient in recovering their workforce than non-users.
Return on Assets (ROA)
The S&P 500 companies are the world’s top performing companies due to the ability to leverage all assets to create revenues, leading to profitability. Business aircraft are one of the assets these companies use to enhance financial performance.
NEXA’s analysis concluded that business aviation users weathered the 2008 recession far better than non-users. Among the S&P 500, business aviation users outperformed non-users in every performance category examined.
Although much has happened in the four years since 2012, and global environments change as quickly as we can turn a page, one thing is certain. As the world continues toward globalization, the need for business aviation will increase.
Even as world economies fluctuate, the demand for air travel and aviation-related products and services will advance. Already, emerging nations are beginning to build the infrastructure required to support the increase in demand. And that means opportunity!
At Blue Sky Innovations, we believe aviation will lead world globalization efforts and companies involved in business aviation will outperform those that are not.