The value of business aviation has for many years been misunderstood and perceived by many as a luxury mode of transport for the rich and famous. Where this is true for a few, the vast majority of people using and benefiting from business aviation, use aircraft to allow them to grow and develop their businesses. The business jet is the only asset that a UHNWI can purchase that buys them time!
In Europe, less than 50% of all flights are commercial flights, with over 40% being private. People looking to utilise business aviation can access over 25,000 additional city pairs that are not serviced by the airlines, potentially reducing the number of flights that are required and increasing opportunities for business growth.
To travel to Malta for a meeting from the Isle of Man would take approximately 48 hours, 4 flights, 2 nights in hotels and 6 meals. What happens if there are 6 people that you need to travel ? The costs multiply. If you assign a value to those people‟s time of £300.00 per hour, the time cost is massive! That‟s 48 hours, at £300.00 per hour for 6 people, plus flights, hotels etc.
What happens if those six people charter an aircraft and complete the meeting in 1 day? Those 6 people save a day, save money, are fresh, more productive and back with their families on the same day. The price of this is the charter cost and 9 hours of those people‟s time, plus they are productive on board, assuming wi-fi!
The average time saved by using business aviation is 127 minutes with 20% generating a time saving of more than 5 hours when compared to scheduled alternatives. The cost of a business aviation flight may be higher, initially than the scheduled alternative, however if you add in the cost of people‟s time this is not always the case.
Once the perception of business aviation is changed and the benefits understood, we will see increased growth and more people benefiting from the time savings that can be achieved.