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J.D. Power Survey: Business Aviation
'Vibrant and Growing'

A J.D. Power and Associates survey commissioned by NBAA concludes that business aviation is "vibrant and growing," with aircraft utilization increasing and the types of missions being flown becoming more diverse.

Of the survey's 413 participants, 44% reported an increase in aircraft utilization, with a median increase of 15%. 52% said their use remained the same, and only 4% had a decrease in utilization.
While the survey showed that travel for key employees is still the most common use of business aviation (88%), other major applications include customer visits (77%), transporting management teams (74%), and emergency customer service trips (70%). Customer trips and market expansion were also cited as a significant part of business aviation strategy.

The study was commissioned to "examine ways in which companies use business aviation strategically and tactically," said NBAA president Jack Olcott. The results should help organizations view business aircraft as "an ordinary option" to be managed "like any other business tool," he said.

Aircraft utilization increases were highest within those organizations having the greatest employee access to business aircraft and where "more people (in an organization) can authorize utilization," said J.D. Powers' Skip March. Although the number of authorizers ranged from only one to ten or more, the median number was three.

Despite increases in aircraft utilization, business aircraft are still only operating at 80% of their capacity. Those surveyed said the major barriers to further increases are the perceived cost of using business aircraft (45%) and mismatches of aircraft capabilities with trips being made (38%). About one in five organizations also included corporate culture, limited employee access and companies' lack of understanding of an aircraft's potential as factors in the gap.

The study was released concurrently with a new, glossy NBAA publication entitled "Business Aircraft Utilization Strategies." Designed to illustrate the diversity of business aviation, the publication profiles eighteen operators and their distinctive uses of business aircraft.
"We wanted to understand how companies use business aircraft, not just why," according to David Almy. He's NBAA VP for strategic programs and the person responsible for spearheading both the survey and publication. He said each operator profile includes "strategy notes" to be used as a catalyst for increased use and acceptance of corporate aircraft.

Olcott said he's "continually surprised by companies who do not evaluate their use of business aviation." Almost twice as many companies that have conducted internal studies of aircraft utilization increased use, against those that haven't made studies.

Results of the J.D. Powers survey supported Olcott's contention that there's "very little of 'Lifestyles of the Rich and Famous' left in this business."

"We're just scratching the surface of business aviation's potential," he said.

Copies of "Business Aircraft Utilization Strategies" are available in the atrium lobby at the entrance to the Georgia World Congress Center.

By David Rimmer
NBAA 1999, Atlanta, Ga.


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