ZapBrannigan
If it ain’t a Boeing, I’m not going. No choice.
Many of NetJets customers are not rich individuals or families, but business who put a premium on the time of their employees. Many times they aren't even upper level managers, but rather mid-level management, district and regional managers, attorneys, realtors, etc.
Oftentimes a corporation needs a corporate aircraft but doesn't intend to fly it enough annually to justify the massive expense of a corporate department (which usually includes keeping crews, maintenance, etc. on staff, a hangar, administrative staff, etc...)
Target, for example, owns two Citation Xs. But they also own several fractions they use to supplement lift when necessary.
The more your company needs to fly, the more expensive a fractional starts to become when compared with ownership.
Our department does an annual comparison of our costs in comparison to the top three fractional providers and we always come in at a significantly lower cost. The fact that the company is constantly looking keeps us honest about saving money wherever we are safely able to though. We are all meticulous about finding the lowest cost fuel, flight planning to take advantage of the best winds and highest true-airspeed. Our schedulers pack the airplanes (we have the highest load factor in corporate aviation) and we make multiple stops (rather than sending an airplane with 2 passengers to a single destination we carry six or seven passengers and might make three or more stops.) We minimize dead-legs as much as possible.
Our company also looks at the airline alternative on each flight. They take a look at the price of the airline ticket, but also look at the intangibles. Let's try an SAT question.
Scenario A:
Executive "Joe" drives two hours in morning rush hour traffic to the airport, parks in long-term, waits for the shuttle bus, goes inside, checks in at a kiosk, shows his ID, checks his luggage, stands in line at security, removes his shoes...belt...etc., gets frisked anyway, goes to gate and waits again. Meanwhile, some TSA flunky downstairs is opening executive Joe's luggage, going through his underwear, etc. He finally boards, sits next to Tourist "Bob" wearing a wife-beater and attempting to read over Executive Joe's shoulder. The airplane is number 91 in line at LaGarbage and Executive Joe ends up :45 minutes late connecting in Atlanta. He runs to his connection (an RJ where he is unable to fit his laptop on his tray table) and just barely makes it before they push. Arriving in New Orleans Executive Joe waits for his luggage (and waits...and waits), then rents a car -- because Executive Joe's business wasn't in New Orleans, it was in Hammond Lousiana on the north side of the lake. 90 minutes later Joe finally arrives at the plant in Hammond and begins to conduct his business. It's too late to go home, so Executive Joe checks into a hotel. The next day Joe wakes up, drives back to New Orleans. He checks in for his flight, goes through the TSA hassles again. Gets a cup of coffee and waits. The flight is delayed due to crew-rest from the previous night. It finally gets underway an hour late. Joe tries to work on his tray-table, but the guy in front of him reclines his seat and Joe's laptop is crushed. The first-time flyer in the seat next to him (again in a wifebeater and sandles he notes) spills tomato juice in Joe's lap and shrugs an apology. Joe misses his connection in Atlanta, but catches a flight a few hours later. Upon arrival at LGA, he waits for his baggage, gets on a shuttlebus back to the parking lot and finally arrives home mid-afternoon. He is exhausted from his trip but goes to the office anyway, working well into the night to get caught up from all of the work he was unable to complete while in transit.
Scenario B:
Executive Joe arrives at Teterboro where the crew is waiting. He knows the flight crew by name and has been flying with them for years. A Wall Street Journal was placed on his seat just like he likes it. Within 5 minutes of arriving at the airport engines are started and they taxi out. There is a short delay for flow, but within :30 minutes they are airborne and two hours later are descending towards Hammond. They land at the Hammond airport where a car is waiting to whisk him to the plant. Two hours later, his business complete, he climbs back aboard the waiting aircraft and is airborne within 90 seconds. Enroute back home he works on his laptop, talks on the satellite telephone, and even has time for a short nap before arriving. He is on the ground by 5:30, makes it home in time for dinner with his family, and is well rested to begin work at 8:00 the next morning.
Question:
What is the value of a Fortune 100 Executive's time and productivity?
Oftentimes a corporation needs a corporate aircraft but doesn't intend to fly it enough annually to justify the massive expense of a corporate department (which usually includes keeping crews, maintenance, etc. on staff, a hangar, administrative staff, etc...)
Target, for example, owns two Citation Xs. But they also own several fractions they use to supplement lift when necessary.
The more your company needs to fly, the more expensive a fractional starts to become when compared with ownership.
Our department does an annual comparison of our costs in comparison to the top three fractional providers and we always come in at a significantly lower cost. The fact that the company is constantly looking keeps us honest about saving money wherever we are safely able to though. We are all meticulous about finding the lowest cost fuel, flight planning to take advantage of the best winds and highest true-airspeed. Our schedulers pack the airplanes (we have the highest load factor in corporate aviation) and we make multiple stops (rather than sending an airplane with 2 passengers to a single destination we carry six or seven passengers and might make three or more stops.) We minimize dead-legs as much as possible.
Our company also looks at the airline alternative on each flight. They take a look at the price of the airline ticket, but also look at the intangibles. Let's try an SAT question.
Scenario A:
Executive "Joe" drives two hours in morning rush hour traffic to the airport, parks in long-term, waits for the shuttle bus, goes inside, checks in at a kiosk, shows his ID, checks his luggage, stands in line at security, removes his shoes...belt...etc., gets frisked anyway, goes to gate and waits again. Meanwhile, some TSA flunky downstairs is opening executive Joe's luggage, going through his underwear, etc. He finally boards, sits next to Tourist "Bob" wearing a wife-beater and attempting to read over Executive Joe's shoulder. The airplane is number 91 in line at LaGarbage and Executive Joe ends up :45 minutes late connecting in Atlanta. He runs to his connection (an RJ where he is unable to fit his laptop on his tray table) and just barely makes it before they push. Arriving in New Orleans Executive Joe waits for his luggage (and waits...and waits), then rents a car -- because Executive Joe's business wasn't in New Orleans, it was in Hammond Lousiana on the north side of the lake. 90 minutes later Joe finally arrives at the plant in Hammond and begins to conduct his business. It's too late to go home, so Executive Joe checks into a hotel. The next day Joe wakes up, drives back to New Orleans. He checks in for his flight, goes through the TSA hassles again. Gets a cup of coffee and waits. The flight is delayed due to crew-rest from the previous night. It finally gets underway an hour late. Joe tries to work on his tray-table, but the guy in front of him reclines his seat and Joe's laptop is crushed. The first-time flyer in the seat next to him (again in a wifebeater and sandles he notes) spills tomato juice in Joe's lap and shrugs an apology. Joe misses his connection in Atlanta, but catches a flight a few hours later. Upon arrival at LGA, he waits for his baggage, gets on a shuttlebus back to the parking lot and finally arrives home mid-afternoon. He is exhausted from his trip but goes to the office anyway, working well into the night to get caught up from all of the work he was unable to complete while in transit.
Scenario B:
Executive Joe arrives at Teterboro where the crew is waiting. He knows the flight crew by name and has been flying with them for years. A Wall Street Journal was placed on his seat just like he likes it. Within 5 minutes of arriving at the airport engines are started and they taxi out. There is a short delay for flow, but within :30 minutes they are airborne and two hours later are descending towards Hammond. They land at the Hammond airport where a car is waiting to whisk him to the plant. Two hours later, his business complete, he climbs back aboard the waiting aircraft and is airborne within 90 seconds. Enroute back home he works on his laptop, talks on the satellite telephone, and even has time for a short nap before arriving. He is on the ground by 5:30, makes it home in time for dinner with his family, and is well rested to begin work at 8:00 the next morning.
Question:
What is the value of a Fortune 100 Executive's time and productivity?
