Author Archives: Mike Flannelly

Aviation For Business – Understanding the Cost of Aircraft

Understanding the Cost of Aircraft

Understanding the cost of using Aviation for Business comes in two forms.  First the opportunity cost of what you can achieve and 2nd, the cost to actually use the aircraft.

Flying in “private” or “general “ aviation aircraft isn’t about owning your own airplane (though that is possible) or about saving money compared to other means of travel, it’s about the time savings, freedom to create your own schedule, and the opportunity to create value by being face to face with whom you need to.

When you own or use an aircraft for business there are two set’s cost’s that go into the “total” cost of operating the aircraft.  Fixed costs; those that you pay even if the aircraft doesn’t fly then there is the Variable cost, the cost associated with the actual operation of the aircraft.

Examples of Fixed cost are:
Purchase or Lease

Examples of Variable costs are:
maintenance (reserves and actual expenses)

Fixed + Variable = Annual Total Cost

Total Annual Cost/ Total Hours flown = Hourly Operating Cost

Of course if you just “rent” or “charter” an aircraft the flat hourly fee is all you would need to consider.  There are a great deal of operators out there would be happy to quote you that rate.  Please be sure to check a number of operators as the cost can vary widely based on equipment and locations.


Aviation for Business… The New Business Technology

Aviation for Business… The New Business Technology

Aviation has evolved!! In this day and age of the internet and instant connectivity, those that separate themselves from the ordinary distinguish themselves and their organizations immeasurably. Technology not only made so many tasks more routine, it has raised the bar on “what is” routine and expected. It’s the same for the aviation world.

Aviation for Business is technology that’s not seen by a large percentage of business because it’s not as prevalent as the “obvious” technology of a phone and computers.  The biggest reasons for not being seen as it relates to business are varied but typically fall into basic categories of: lack of aviation resources, no subject matter experts, limited financial understanding and/or perceived “lack of need”.

The lack of need has perpetuated itself based on typically old or false premises’ of expense and limited utility. What general aviation can really do for you truly depends on what you need it to do and the priorities you place on those task.

If you are in business and need to make more sales then you need to get in front of more people. That has been drummed into the best salespeople for years. Using Aviation for Business can improve that number. It is not without cost, but when you consider the value of a client or customer against the expense of gaining that client aviation has proven a worthy investment. Aviation for Business provides a host of options relating to movement of not only people but supplies as well.

Sometimes you can directly associate the use of aviation to gains (like a large sale) but even lacking that, the overall performance numbers of companies that operate aircraft vs those that don’t verifies Aviation for Business provides value.

Aviation for Business – Value Proposition

Aviation for Business

Value Proposition

The cost of an aircraft is only one consideration for your situation.  The method of business travel, either private aviation or airline, directly relates to the tangible costs as well as business efficiency that each method offers.  Travel makes a impact in your organization, how much depends on the volume, and the value you place on stakeholders, key employee’s, clients or service(s).

A quick look at the Benefits of Aviation, from those that do use aviation for business, will give you an idea of the potential for your organization.  The point is you know your business better then anyone else so you need to make that determination. Perhaps the company will now explore opportunities that would have been out of reach or meetings are now more productive without the burden of making someone else s schedule.

The value proposition, considering the value you place on “opportunity” is the additional assessment of  aviation for business you need in order to determine its affect on a company.  Focus the equation by taking the time to understand the utility aircraft provide to give you an accurate picture of value to your particular business .

If your focused only from a direct cost approach, without considering the “savings” and “efficiencies” that aviation for business provides there is no equality or value proposition.


Aviation for Business – Success and Growth?

If you have evaluated the cost/benefit of Aviation for Business and empirically concluded it is not viable then you need not read any further, thank you for your time.

Aviation for Business plays a critical role in the success and growth to some of the most successful companies in the world today.  It has been our experience that many CEOs, leaders and executives, once exposed to the comprehensive mixture of Aviation for Business, believe that it’s a viable option that complements the travel needs of diverse companies.

To weather the storm of the past two years required significant discipline and action.  In order to grow and move forward will require even greater strategies, practices and execution.  Already lean organizations are required to step it up another notch to stay competitive.  The speed of business and competition has increased triggering faster reaction times in order to reach and sustain target markets.

Bottom line:  any travel impact’s margins and profitability.  Transportation is vital to nearly all organizations at some level; whether you air, truck, or rail your goods, services and people (intellectual property) they are transported in one fashion or another.

Aviation for business provides CEOs and stakeholders proven efficiency and our aim is to show those capable of benefiting from aviation the contribution it’s proven to provide.