As more companies opt for business aviation solutions, they face a bewildering realm of choices. Should I own a whole aircraft or just a fraction? Should I charter flights or buy a jet card? Rely on apps or book by-the-seat? With so many options available, travel managers who seek to guide their business travelers into flying private need to turn to experts for advice on getting started and flying smart.
Travel managers who attend this year’s Global Business Travel Association convention in San Diego will encounter an increasing number of business aviation companies, an opportunity to develop partnerships and give their companies a competitive advantage.
Embraer Executive Jets CEO Michael Amalfitano illustrated the exponential growth of business aviation. New users once accounted for 10 to 15 percent of the business but have grown to over 50 percent, he says. Similarly, new aircraft buyers once accounted for 15 percent of purchases, but today it is more than double at 35 percent.
The fact is business aviation has always been a piece of corporate travel’s solutions set. It has consistently proven to be an efficient and cost-effective way to get sales and customer service teams to clients. But now it is more important than ever. Users are far more profitable than nonusers, and business aviation offers greater employee satisfaction because it enables the out-and-back-in-one-day trips, a feature lost in commercial airlines’ hub-and-spoke systems.
“People once thought private aviation was an extravagant expense, but the pandemic dramatically changed business travel,” says Flexjet executive vice president of sales D.J. Hanlon. “Since then, travel patterns have changed to ensure they get where they need to go because of airline schedule and route changes.”
Private Jet Services senior vice president of sales Andrew VanderPloeg is in complete agreement. “The change is driven by reliability and reduction in commercial service which has been severely reduced in a number of markets with pilot shortages and other issues. This makes travel far harder. So for individuals in small markets, the ability to operate direct point-to-point is a huge benefit for the time saved,” VanderPloeg explains.
“We expect this global trend will continue,” Kari Bigot, Chapman Freeborn’s vice president passenger sales-America, says. “There will be additional spikes from pent-up desire for face-to-face meetings and as events transition back to in-person. Travel managers and organizations now recognize business aviation provides safety, security and convenience to 10 times more airports. It significantly minimizes travel time and maximizes flexibility and reach, making it more likely for them to maintain business aviation as their go-to travel option.”
There is also the high cost of missed connections and cancelled flights. Indeed, years before the pandemic struck, the General Accountability Office concluded it took a traveler an average of three days to be rebooked after weather delays because of airline overbooking. Today, with tighter capacity and network cuts, the situation has only worsened.
Cutting Through Confusion
With all the variables, there is no one-size-fits-all approach to business aviation. So it takes expertise to help determine the right choice and ensure there is no buyer’s remorse for whatever mode your company invests in – jet cards, fractional or full aircraft ownership, or by-the-seat purchases.
“My best advice is to find the right advisor,” says Hanlon, adding it is especially important for new entrants. “It’s wise to stick with the larger, more reputable companies with good safety cultures. They may be more expensive, but that safety culture is why. Cost should be part of the decision, but it should not drive the decision.”
A good advisor will ask potential clients questions, and then more questions. “I’m going to poke and prod so you tell me how you fly which reveals the information needed to offer the best options and the pros and cons of each,” Hanlon says. “Do you fly 60 hours a year, mostly quick round trips or do you have other missions? What do you need when things go wrong? Do I have the resources you need to quickly recover when that happens?”
Vincent Kavanagh, who is Air Partner senior vice president of sales, says he loves the opening conversation. “It’s where we get to know you,” he explains. “Client needs are all different which needs to be discussed from the outset to set expectations and ensure total satisfaction. But you don’t want paralysis by analysis. It is asking the probing questions about how they fly that can help get to the best tailored option – or options.”
At the same time, customers need to drill down for answers as well. “Clients should never stop asking questions,” Kavanagh says.
The answers will keep you safe, says Doug Gollan, founder of Private Jet Card Comparisons. “How many years has their company been around? How many years have they been at the company or in the industry? How do they vet operators? Have they ever been sued? Can they give you references? As a corporate account, you may want to ask for a statement or reference from their accountant that their business is sound.”
Bigot agrees. “Look for firms with longstanding operations with returning customers and expert teams,” she advises. “This includes knowledge of regulations applicable to charter brokerage and aircraft operations. There are many standards that must be met, paramount of which is safety and security. It is vital you check that the audit history and ratings are in good standing, investigate operator accidents or incidents and regulatory enforcements, maintenance and inspection of the aircraft, as well as initial and recurring training of crew. Our brokers manage the entire experience from inquiry to sourcing, to booking, to the day of travel, and their roles include onboard catering, ground transportation and any other customized needs. It’s all about getting the right information so the client can make the best-informed decision.”
Finding the Right Advisor
With few neutral resources available, both Kavanagh and VanderPloeg point to Gollan, noting his website can save weeks of research.
As editor of Private Jet Card Comparisons, Gollan is unique. His website offers free articles and FAQs with the granularity you need to understand chartering, jet cards, fractional ownership, by-the-seat options and apps. He also poses questions you should ask and offers a list of reputable brokers.
Private Jet Card Comparison’s biggest advantage is the investment – $250 per year, which includes one-on-one advisory services – making this the least expensive and most independent way to learn about private aviation.
“We are often the first stop for anyone trying to figure out what solutions make the most sense,” Gollan says. “There are lead-generation sites – but they either sell your information for telemarketing sales to jet companies or make recommendations based on referral fees, which is a bad idea when you are spending six figures. Our subscription helps you decide whether you should buy a jet card – or cards – and specifically which programs are the best fit or whether you should just charter, buy a fractional ownership or whether there are jet-sharing options.”
If the complexities seem overwhelming, many air charter experts like Kavanagh, VanderPloeg and Bigot make vetting on your behalf a standard part of the service to ensure the safety and reliability.
“Some of the key points cover many areas,” says Bigot. “These include point of origin and final destination; intermediate stops; number of passengers per leg; dates and times for travel and whether they’re flexible; cargo or baggage needs; onboard facilities such as restroom, WiFi/telephones, conference tables, or sleeping quarters.”
But VanderPloeg notes it is equally important to provide information on what happens when things go wrong. “We make sure clients know what occurs when there is a problem,” he explains. “We look at the budget and present a proposal with tail-specific options, covering year of manufacture and interior refurbishment, cabin dimensions, safety accreditations of the air carrier, baggage compartment size, WiFi amenities. We detail options and price, working to distill a lot of information down to key factors to make decisions easier.”
One thing is certain: Travel decision makers need to do their research to make sure they get the most out of their business aviation options. “Clients must take time to first understand what their needs are,” Gollan says. “After we’ve identified which providers are a match, they should create a relationship and speak to each of them. This is a big-ticket purchase. Subscribers tell me they are glad they spent the time to do that. It gives them a 360-degree view and really helps them make an educated choice. I love seeing subscribers who didn’t know anything able to make confident buying decisions.”
Advisors also agree newbies should start small to gain experience so they can begin to decide for themselves how best to meet their travel needs. “There are hundreds of business aircraft,” Bigot notes. “I highly recommend customers take the time to select an air charter broker that has the right systems in place, such as in-house compliance review teams, to support the necessary checks.”
