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.