Global corporations are among the largest users of private jet charters, with many even owning fleets of executive aircraft. At first glance, this may seem counter-productive and inefficient – surely ‘big business’ could easily transport their employees in first or business class on commercial airlines at a fraction of the cost?

Cost-efficiency and EBITDA are core objectives for most companies, the decision to invest millions annually in private aviation can appear difficult to reconcile. Additionally, private jets carry a significantly higher per-person carbon footprint, raising concerns in an era of growing environmental accountability.

Having said this, many corporations, especially within the United States continue to prioritise private aviation for their travel needs. By leveraging these advantages, companies ensure their business travel aligns with strategic priorities, optimising both time and resources.

At Sentinel Aviation, we are always keen to examine factors that would drive businesses to favour private jets over commercial alternatives.

1/ Time Efficiency

Private jets can save hours on each trip

As an example, typical travel time from New York to Washington, D.C.:

• Commercial aircraft: 4-5 hours
• Private jet: 1.5-2.5 hours

Flying commercial on a short route between two major business hubs like New York and Washington, DC often involves significant time inefficiencies. Employees typically spend around an hour traveling to the airport, two hours waiting for their flight, and additional time commuting from the arrival airport to their destination.

Conversely, private jet travel eliminates many of these delays. With streamlined boarding and direct flights from accessible airports like Teterboro (TEB) near New York, travel time is drastically reduced. Additional time savings can be achieved using helicopters for transfers between downtown locations and airports, further increasing efficiency.

Teterboro Airport, NY.

On a single trip between New York and DC, private jet travel can save upwards of two hours, making it a compelling choice for high-earning executives. With charter rates for aircraft like the Embraer Phenom 300 averaging approx. £3000.00 ($4,000.00) per flight hour, the expense is easily justified for employees earning salaries in the multimillion-dollar range.

When multiple executives share a private jet, the cost-efficiency improves further. “For industries like private equity, investment banking, and industrial powerhouses, the benefits of time savings, productivity, and convenience make private jets the clear choice for top-tier executives”– according to Presidential Aviation.

2/ Flexibility

Custom Schedules: Unlike commercial flights, private jets operate on the passenger’s schedule, accommodating last-minute changes and offering 24/7 availability. Companies can therefore move their employees at a moment’s notice. In the event of an emergency, the organisation can get its executives exactly where they need to be as quickly as possible and will not be at the whims and scheduling of commercial airlines.

Access to More Airports: Private jets can use over 10 times the number of airports compared to commercial airlines, offering greater route flexibility.

Walmart Case Study
Routes Walmart executives fly that lack nonstop commercial service:

Rogers Executive Airport (ROG) to Bozeman Yellowstone International Airport (BZN)
Rogers Executive Airport (ROG) to Bradley International Airport (BDL)
Rogers Executive Airport (ROG) to Western Nebraska Regional Airport (BFF)

Walmart has its HQ in Bentonville, Arkansas, a city that is relatively out of the way and does not have a major hub airline. As a result, Walmart has invested heavily in corporate aircraft, operating a fleet of 22 jets, as per reports from Business Travel News.

Walmart Aviation Bombardier Global Express (Copyright Martyn Gill)

Furthermore, considering that many Walmart facilities are located in rural towns, the company’s executives are commonly forced to travel between two destinations that are weakly connected by commercial flights. With corporate jets, a trip requiring three or four layovers could easily become a swift, nonstop journey.

3/ Enhanced Productivity

A private flight affords the company a completely ‘private office in the sky’, enabling executives to hold meetings, establish completely secure communications or work on sensitive documents without interruptions.

As explained by Corporate Jet Investor – “if a significant business decision needs to be made, executives can easily do so from the comfort of a business jet. Confidential conversations and data can easily be examined onboard private jets, as opposed to on aircraft where privacy is limited due to surrounding passengers and unsecured open WiFi networks.”

This is one of the key benefits for organisations, such as Nike, to maintain entire fleets of private aircraft.

Nike has built some of the most spectacular corporate aviation facilities anywhere in the world.

4/ Health & Safety

Reduced Exposure: Private jets minimise exposure to crowds, enhancing health and safety, especially during global health crises.

A Bespoke Environment: Companies can ensure better control over the inflight experience, including personalised catering and tailored cabin environments.

5/ Corporate Image and Retention

Prestige: Using private jets reflects a company’s commitment to efficiency and success, enhancing its corporate image.

Employee Satisfaction: For senior executives and key personnel, private travel is seen as a perk, aiding in retention and recruitment efforts.

6/ Cost Justification for Key Personnel
Value of Time: For high-level executives whose time is exceptionally valuable, the cost of private travel is often outweighed by the productivity and time saved.

In Summary

By leveraging these advantages that we discuss above, companies ensure their business travel aligns with strategic priorities, optimising both time and resources.