written and produced by mark patiky the enlightened ... · made in america, sam walton,...

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W ithin minutes they’ll be departing on an armada of 19 Bombardier Learjets, a Challenger and a Global Express that will express deliver them to scores of des- tinations across the nation, and around the world. Most of the domestic travelers will be home by evening in an amazingly orchestrated performance that plays out daily. These are Wal-Mart people, and they’re flying on Wal- Mart’s Home Office corporate “air force.” Special Advertising Section Written and produced by Mark Patiky It’s 6:15 a.m. in Rogers, a relatively small but rapidly growing community in northwest Arkansas. One hundred travelers are arriving for their flights, but there are no airliners at the gate. The passengers are delighted. The Enlightened Business Traveler

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Page 1: Written and produced by Mark Patiky The Enlightened ... · Made in America, Sam Walton, Wal-Mart’s legendary founder, compiled a list of 10 factors that unlock the mystery to his

Within minutes they’ll be departing on an armada of

19 Bombardier Learjets, a Challenger and a Global

Express that will express deliver them to scores of des-

tinations across the nation, and around the world. Most

of the domestic travelers will be home by evening in an

amazingly orchestrated performance that plays out daily.

These are Wal-Mart people, and they’re flying on Wal-

Mart’s Home Office corporate “air force.”

Special Advertising Section

Written and produced by Mark Patiky

It’s 6:15 a.m. in Rogers, a relativelysmall but rapidly growing communityin northwest Arkansas. One hundredtravelers are arriving for their flights,but there are no airliners at the gate.

The passengers are delighted.

The Enlightened Business Traveler

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Bombardier Learjets, a Challenger and a Global
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Express
Page 2: Written and produced by Mark Patiky The Enlightened ... · Made in America, Sam Walton, Wal-Mart’s legendary founder, compiled a list of 10 factors that unlock the mystery to his

The Enlightened Business Traveler Advertisement 2

Executive perks? Hardly. In fact, top

management is third in the pecking order

when it comes to using the corporate

jets. These passengers are Wal-Mart’s

front line: regional managers, human

resource professionals, buyers, comput-

er technicians — just about any Wal-Mart

associate with a need to travel. They reg-

ularly visit Wal-Mart’s thousands of stores

across America’s heartland, meeting with

customers, store associates and store

managers to learn how to serve them

better. These business travelers are the

essence of the world’s largest company’s

spectacular rise to the pinnacle of retail

success. Not only is Wal-Mart “rolling

back prices,” but it is also using one of the

most cost-effective resources to do so —

the company plane, better known by Wal-

Mart’s people as “the time machine.”

In his 1992 book, Made in America,

Sam Walton, Wal-Mart’s legendary

founder, compiled a list of 10 factors that

unlock the mystery to his success. They

were known as Sam’s Rules for Building

a Business. Rule seven reads: “Listen to

everyone in your company, and figure out

ways to get them talking. The folks on the

front line — the ones who actually talk to

customers — are the only ones who

really know what’s going on out there.

You’d better find out what they know.”

That is exactly why Wal-Mart’s compa-

ny planes are indispensable ingredients in

its business strategy. They deliver Wal-

Mart’s people — the company’s most

precious resources — just in time where

they are needed most. Without business

aircraft, Walton claimed, the company

would never have been as successful.

BUSINESS AIRCRAFT: A WEALTH OF ADVANTAGES

More than 20,000 companies across

the U.S. operate turbine-powered busi-

ness aircraft or own fractional shares in

them, and thousands of additional com-

panies take advantage of business air-

craft charter on a daily basis. These

companies, often the most successful

in the world, have learned, like Sam

Walton, that business aircraft are vital

resources for creating a competitive

advantage. A business aircraft enables

efficient, rapid and sometimes the only

access to world markets, and they pro-

vide powerful benefits when needed

most — when time is precious, mobili-

ty is vital, business is critical and timing

is essential. Companies that use busi-

ness aircraft also realize that time and

opportunity are perishable resources for

all employees, not just the top brass.

Recent studies have shown that the

majority of passengers aboard business

aircraft are middle managers or techni-

cal and professional staff.

• Preserve Time There just isn’t enough of it. And with

downsizing and rightsizing, the value of

time escalates exponentially. Consider

the cost of a job not completed, a

negotiation not concluded or business

lost to a competitor that arrived first.

This is where a business aircraft can

prove tremendously helpful. The com-

pany plane obliterates travel time. You

can access more than 5,000 small

towns, suburban areas and major cities

throughout the nation and thousands

more across the globe, in contrast with

commercial airlines that fly to less than

10% of those U.S. destinations. Adding

to the inconvenience is the fact that

nearly three-quarters of the nation’s air-

line traffic filters through about 50 hub

cities, making plane changes a nearly

inevitable facet of commercial travel.

That means that an hour and a half

flight in a business aircraft can translate

into a five- to seven-hour airline journey,

or even more where a change of planes

and an additional road trip is involved.

• Transform Travel Time To Productive Time Besides leaving later and arriving

sooner in a business aircraft, you gain

another bonus because you can use

that travel time effectively. You can hold

confidential business discussions or

group meetings that would be impossi-

ble in a public environment, and you

can phone, fax and connect to the com-

pany network or to the entire world as

you travel miles above the earth. The

cabin becomes a private, airborne office

moving at 500mph. Many companies

report that executives and managers

are actually more productive in a busi-

ness aircraft than in their terrestrial

workplace because there are no inter-

ruptions and conflicting demands.

• Command Your Own Schedule With a business aircraft, you operate on

your timetable and not an airline’s. There

is no need to depart hours, and in some

cases days, in advance, and there is never

any pressure to cut a meeting short

because the plane won’t leave without

you. The company plane provides the ulti-

mate in flexibility.

• Regain Your Life A business aircraft allows you to avoid

the debilitating impact of commercial

travel with its discomfort, delays and

frustrations. On the company plane, you

arrive refreshed and relaxed. You can

accomplish your mission and return

without unnecessary nights away from

home and family. For many firms, this is

an essential factor in retaining their

brightest and most productive people.

Page 3: Written and produced by Mark Patiky The Enlightened ... · Made in America, Sam Walton, Wal-Mart’s legendary founder, compiled a list of 10 factors that unlock the mystery to his

Little League games, school plays and

relaxed family dinners are no longer

scheduling impossibilities.

• Security and Safety Without Compromise Business aircraft, by definition, are

a secure environment. You know who

is flying the plane, how they were

trained and how the aircraft is main-

tained. You know what is in the bag-

gage compartment, and you know

who is on board so you can hold con-

fidential discussions and deal with

sensitive company issues in complete

privacy. All of these factors impart cer-

tainty and confidence. In addition,

business aircraft passengers depart

and arrive at executive terminals and

private facilities that are cut off from

public view. From a safety perspective,

business jet aircraft flown by a two-

person flight crew have the best

safety record, often exceeding that of

the airlines, and flight-crew training is

typically conducted on the most

sophisticated flight simulators to rig-

orous airline standards.

THE RIGHT TOOL FOR THE JOB

As airline service deteriorates and

companies acknowledge the exception-

al benefits of a company plane, demand

for business aircraft continues to accel-

erate. New products are fulfilling a com-

plete range of requirements and satis-

fying them in an affordable way. New,

larger aircraft promise faster, more effi-

cient, more comfortable flights, greater

capability and longer range. Some of the

latest-generation business aircraft have

safety, performance and cabin tech-

nologies that rival airliners yet can take

advantage of small or remote airfields.

On the other hand, a complete range of

smaller aircraft is in development that

promises cost-effective travel for even

one or two passengers traveling short

routes at jet speeds.

Companies desiring the benefits of

business aircraft have a wide array of

choices including helicopters, turboprops,

small-, medium- and large-cabin jets, not

to mention globe-spanning ultra-long-

range aircraft that can reach anywhere on

Earth with a single refueling stop.

THE SERVICE THAT MAKES IT PRACTICAL

There are equally abundant ways to

access business aviation benefits.

Many companies purchase and operate

their own aircraft. Other companies that

just want the service without the con-

cerns turn to professional charter and

management companies that maintain

and operate the aircraft and supply

every conceivable travel requirement.

Then there is one of the hottest busi-

ness travel options — fractional owner-

ship. For a fraction of the cost of an

entire aircraft, buyers accrue ownership

and tax benefits and pay only for the

annual hours needed. It is a turnkey

financial option that has opened the air-

craft cabin door to thousands of com-

panies that never imagined it possible.

In the profiles that follow, you will

see that the company plane is a pow-

erful business tool. These enterprises

use business aircraft to reach cus-

tomers, vendors and manufacturing

facilities across the nation and around

the world. They acknowledge that time

has exceptional value, and business avi-

ation is one of the best ways to realize

that worth. You also will see that with

all the choices, flexibility and opportu-

nities, business aviation is affordable to

companies of any size.

Flight LogFLORIDA POWER AND LIGHT

Whether you live in Maine or California,

it’s possible that both the oranges and the

electricity you consume come from a Flori-

da company. Based in sun-drenched Miami,

Florida Power and Light, part of the FPL

group, is the nation’s leading generator of

wind energy, operates power plants from

coast to coast and is one of the largest and

fastest-growing utilities in the U.S.

Advertisement 3 The Enlightened Business Traveler

Page 4: Written and produced by Mark Patiky The Enlightened ... · Made in America, Sam Walton, Wal-Mart’s legendary founder, compiled a list of 10 factors that unlock the mystery to his

With far-flung business interests, FPL

takes excellent advantage of its two

Cessna Citation Vs and a Dassault Falcon

2000. The planes shuttle busy executives

between power plants, facilities and cru-

cial business negotiations. “We view our

business aircraft as critical assets that

generate tremendous productivity bene-

fits,” says Breck Porter, FPL’s chief pilot.

“We’re going to a number of remote loca-

tions all over the nation, from the wind

fields in Texas and California to hydro-

electric plants in Maine and power plants

throughout the Carolinas, that would be

very difficult to access via airline,” he

says. By flying directly to small airports

nearby those facilities, the jets make

these trips fast and efficient. “Our people

have to travel a lot, so if the corporate air-

plane can cut out wasted time and get

them back home with their family, that’s

an important factor in building morale and

retaining our best people,” Porter says.

The Citations typically handle shorter

flights while the Falcon 2000 takes on

long-distance duties. The fuel-efficient

Falcon 2000 offers nonstop range from

Florida to the Northwest coast, and the

spacious cabin becomes a great place to

work, says Porter. “There’s no question

— there’s a big benefit to planning, dis-

cussing, putting a strategy together,

bouncing ideas off one another and

being completely in sync when you

arrive,” he says.

“The quality of our human resources is

what drives the company. Our managers

are always on the go, so saving them

time and creating business efficiency is

essential,” says Porter. With the compa-

ny plane, FPL people not only save a day

or two of travel on each trip, but they

also have the flexibility to depart or arrive

when it makes the most sense.

Besides the quantifiable time savings

and considerable intangible benefits,

Porter figures that operating costs on any

FPL trip with three passengers or more

will be less than last-minute coach airline

fares. It is hard to dismiss a value equa-

tion like that.

“Although top executives are key to

business, there are a lot of other man-

agement- and professional-level people

who have very important functions,”

he says. “So, we use the planes as

company-wide business tools. Human

resources are limited and you really

need to maximize their value and time.

That’s where a corporate airplane really

shows its stuff.”

OUTSOURCING AIRCRAFT OPERATIONS

Although the benefits of business air-

craft are clear, first-time buyers with lim-

ited business aviation background are

often apprehensive about the “care and

feeding” — essentially the full array of

operational necessities required — for a

company plane. These and dozens of

other questions and concerns are easily

handled by specialist firms with the pro-

fessional experience to manage the entire

aircraft operation.

By outsourcing the management func-

tion, a buyer can gain all of the business

aircraft advantages and financial benefits

while eliminating the bother. “A top-qual-

ity flight management company can pro-

vide a full-service turnkey package includ-

ing highly trained, dedicated flight crews;

factory-trained maintenance technicians;

hangarage; insurance and accounting ser-

vices; plus the assurance that all opera-

tions meet the most rigorous industry

standards,” says Bruce McNeely, Jet Avi-

ation Business Jet’s senior vice president,

Aircraft Management Services North &

South America. Jet Aviation provides air-

craft management, charter and flight sup-

port worldwide, and its U.S. and Euro-

pean divisions jointly operate a fleet of

more than 150 aircraft. “A management

relationship makes using your airplane as

easy as picking up the telephone,” he

says. “Everything else is taken care of.”

Although aircraft management cus-

tomers are typically first-time buyers,

McNeely points out that many of his

clients are corporations with previous own-

ership experience. They determined that

outsourcing made good economic sense.

“It frees up internal resources if a compa-

Advertisement 5 The Enlightened Business Traveler

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ny decides they don’t wish to run the air-

craft operation themselves,” he says. In

addition, large aircraft management firms

can exercise considerably more buying

power than individual owners might have.

The results are favorable terms and dis-

counts for fuel, maintenance, parts and

labor, crew training purchases and other

services that can be passed along to

reduce the owner’s operating costs.

If an owner’s aircraft usage require-

ments are limited, management firms

also can find charter customers who

will pay a retail per-hour rate for the

aircraft when it would otherwise not

be flying. The revenues offset some

fixed expenses and help reduce the

cost of ownership.

Flight LogCROWN CORK & SEAL

Chances are the last can of soda pop

that you opened was produced by Crown

Cork & Seal. Headquartered in Philadel-

phia, Pa., Crown Cork & Seal produces

one of every five beverage cans used in

the world. Last year, the company capped

more than $7 billion in sales of cans and

containers of all kinds.

As the world’s packaging leader with

operations across the U.S. and in 45 coun-

tries, Crown Cork’s executives are fre-

quent globe-trotters. Maintaining intense

schedules is a management priority that

demands economizing time, so managers

sustain their competitive edge with the

company’s Gulfstream G5 ultra-long-range

business jet. “Face-to-face meetings are

essential,” says Jack Kandravi, chief pilot

and flight department manager, “and the

airplane facilitates that in a timely way.”

Although capable of flights as long as 13

hours — virtually anywhere in the world

with only a single refueling stop — the

fuel-efficient, large-cabin jet also saves

considerable time on trips across the

state and across the nation.

“Top management, vice presidents and

department managers are using our air-

plane more than ever,” reports Kandravi.

“It is the only way that they can make

schedules that make sense in light of

increasing airline security delays and com-

mercial flight inconvenience.”

The jet is minutes from company

world headquarters near Northeast

Philadelphia airport, and Kandravi points

out that “executives can work as long as

they like, walk out the door and be on

board in 10 minutes.”

With Crown Cork’s plants, offices and

customers located from coast to coast,

the Gulfstream is particularly busy. Many

destinations are small towns isolated

from commercial air service where

human and natural resources, highways

and attractive land values are important

criteria for establishing a plant. Batesville,

Miss., is a good example where the local

airport and the Crown Cork & Seal plant

play an essential role in community

growth. Teams of senior executives, mar-

keting and sales managers, professional

staff and others often fly out making five

or six stops at similar locations over a

two-day period and return. The plane also

is used to pick up customers and fly

them to facilities. “Allowing customers to

view our capability firsthand is especial-

ly valuable,” says Kandravi.

On an upcoming transatlantic trip, a

management team will fly through the

night sleeping comfortably on berthable

seats and arrive refreshed and ready for

morning meetings followed by a five-day

whirlwind across Europe. “They fly on

their schedule and adjust their plans as

needed,” he says. “And the environment

is comfortable, private and secure, so

groups can split up in various sections of

the large cabin and hold meetings or con-

fidential conversations.” That’s something

unheard of when traveling by airline.

In parts of the world where business

facilities are less than sufficient, execu-

tives have invited local guests to a meet-

ing and dinner on the airplane and, later,

worked long hours using global fax and

satellite telephones. “The big advantage

with our company airplane is that it is an

office away from home,” says Kandravi,

“and it is as functional on the ground as

it is in the air.” In addition, he says, “We

know everyone on board, what’s in the

baggage compartment, and we can

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assure passengers that their luggage will

arrive with them on every flight.”

FRACTIONAL OWNERSHIPBUY A SHARE, INHERITTHE WORLD

No other innovation in business travel

has had the impact of fractional aircraft

ownership. In the mid-1980s when Net-

Jets Founder Richard Santulli conceived

this hybrid aircraft-ownership plan that

combines the economic benefits of a

time-share with guaranteed travel avail-

ability, few believed it would work. Today,

fractional ownership is experiencing expo-

nential growth. It is the most dynamic

idea in business-jet acquisition because it

brings the benefits of business aircraft to

companies and individuals that never

dreamed it possible . . . or affordable.

For a fraction of the cost of a wholly

owned aircraft, a company or individual

receives all the full-ownership benefits,

including tax advantages and much

more. At the same time, operational con-

cerns, overhead and inconveniences

vanish. One phone call wherever you

happen to be puts a virtual fleet of air-

planes at your disposal at thousands of

airports across the nation.

Owners purchase a quarter, eighth or

sixteenth interest and pay that fraction of

the full cost. In turn, they gain access to

an entire fleet of identical aircraft and

receive a guarantee that the aircraft will

be available within hours, anywhere in the

U.S. and anytime they want it. Quarter-

share owners have an allocation of 200

flight hours annually; eighth-share owners

have a 100 flight-hour allocation; and

sixteenth-share owners receive 50 hours.

Each owner also pays an apportioned

monthly management fee for fixed costs

such as hangarage, crews, training, insur-

ance, maintenance and administration. In

addition, the owner pays a flight-hour rate

covering fuel and other direct operating

costs, but only when the aircraft is occu-

pied. There are no charges for positioning

flights or empty legs.

If you need an airplane in Des Moines,

you can have it there, and if you need it in

Tulsa, you can have it there. If you need it

in both places at the same time, you can

do that too. In addition, when the trip

length or passenger load suggests a

larger or smaller aircraft, fractional owners

can trade hours for an aircraft better

matched to their needs. That means that

an interest in any aircraft type provides

access to the entire range.

It is no wonder that fractional owner-

ship is so popular: Owners actually have

more benefits and greater flexibility than

with a wholly owned aircraft. In addition,

with guaranteed buyback provisions and

high residual values, the investment is a

sound one; at the end of the contract

period, owners can cash out or reinvest

in another plane. Leasing also is available,

which makes fractional ownership even

more affordable.

Although more than 80% of fractional-

share owners are first-time buyers, a

noteworthy number of corporations with

their own in-house flight departments

and business aircraft supplement their

existing flight requirements with frac-

tional shares. An important value is that

costly empty or deadhead legs can be

eliminated. These companies also pur-

chase fractional shares when an addi-

tional aircraft or another aircraft type is

needed on a limited basis or as a backup

when the company airplane is unavail-

able. And many companies that routine-

ly fly domestic routes find that a frac-

tional share of an ultra-long-range aircraft

is the perfect answer for providing global

access as the needs arise.

In the wake of this tidal wave of inter-

est, a profusion of fractional ownership

providers have sprung up with a diversi-

ty of nuances, benefits and aircraft choic-

es. Many have launched and quickly dis-

appeared. Other quality names will stay

the course. How do you choose? Thor-

oughly investigate the differences

between each provider and carefully con-

sider the advantages that each one pre-

sents. Remember, you may be purchas-

ing a share in an aircraft but you are

actually investing in safety, security and

service, not to mention a long-term rela-

tionship with a company that you want to

know will be here tomorrow.

NETJETSCurrently, more than 4,900 individuals

and corporations in the U.S. have a piece

of the ultimate productivity tool and about

half of those are NetJets owners. As the

leading fractional ownership provider,

NetJets has more than 475 aircraft in

The Enlightened Business Traveler Advertisement 8

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Page 7: Written and produced by Mark Patiky The Enlightened ... · Made in America, Sam Walton, Wal-Mart’s legendary founder, compiled a list of 10 factors that unlock the mystery to his

operation and offers the largest selection

of aircraft types — 13 in all — ranging

from light jets such as the Cessna Cita-

tion Bravo to the intercontinental, globe-

spanning Gulfstream GV and Boeing

Business Jet (BBJ).

Today, a NetJets U.S. owner can fly any-

where in the world. Owners also can fly

commercially to Europe or the Middle East

and call for a NetJets aircraft when they

arrive because the same business-aircraft

accessibility and convenience that they are

used to in the U.S. is now obtainable abroad.

An Asia NetJets program is anticipated in

the near future and is likely to offer long-

range, intercontinental Gulfstream GIV and

GV aircraft and the Boeing Business Jet.

There are five NetJets aircraft choic-

es in Europe and three different aircraft

types in the Middle East. The recently

introduced Cessna Citation Bravo in

the European fleet offers access in and

out of London City Airport, which is

located minutes from London’s finan-

cial district and the nerve center of the

European economy. The Falcon 2000 is

another new NetJets Europe arrival

and offers seating for 10 passengers

plus nonstop accessibility to all of

Europe, Africa, the Middle East, East-

ern Europe and Russia.

FLIGHT OPTIONSFlight Options brings a new dimension

to fractional ownership with a unique

premise and innovative features. The

company became the first to offer frac-

tional interests in high-quality, fully refur-

bished, pre-owned jets, which are avail-

able at substantial savings. By purchasing

shares in pre-owned aircraft, owners gain

an approximate 33% price advantage

over similar, new airplanes.

This year, in yet another giant leap sky-

ward, the company doubled in size by

combining operations with Raytheon

Travel Air. The joint organization is now

the second-largest fractional aircraft

provider in the world, offering a totally

unique mix of both pre-owned and new

aircraft. A remarkably broad selection of

11 aircraft is available, ranging from

Raytheon King Air turboprops to light jets

such as the ever-popular Raytheon

Beechjet, in pre-owned and new models,

through the midsize Raytheon Hawkers,

Dassault Falcon Jets and Cessna Cita-

tions, up to the large-cabin Bombardier

Challengers and the intercontinental Gulf-

stream GIV. The combined fleet totals

more than 200 aircraft.

While it might appear that the value

offered by pre-owned jets would com-

promise the market for new aircraft,

Flight Options developed a novel value

formula called Factory Supported Pric-

ing™. The program makes new and pre-

owned share purchase equally intrigu-

ing. Although the initial investment in a

new aircraft is higher, Flight Options

offers the planes at reduced flight-hour

costs by passing on the savings that

accrue from lower maintenance expens-

es on aircraft under warranty. The result

is a savings of about 25% on the occu-

pied hourly charges. The enhanced fleet

size has resulted in considerable buying

power, which further reduces the

owner’s operating costs.

The additional value, represented by

a lower initial capital investment for

pre-owned airplanes and lower per-hour

costs for new airplanes, makes busi-

ness aircraft benefits affordable to a

much wider audience. As a result,

Flight Options is experiencing blister-

ing growth.

FLEXJETBombardier’s Flexjet fractional owner-

ship program is unique in that Bombardier

not only manufactures the aircraft, but

also exclusively handles maintenance,

flight operations and all other aspects of

the program. FlexJet offers shares in

Bombardier Learjet 31a, Learjet 45 and

midsize, transcontinental Learjet 60 air-

craft. Shares also are available in the

large-cabin Bombardier Continental and

for those who need global capability, the

wide-body Challenger 604.

Currently there are more than 105 air-

craft in the Flexjet fleet. Owners are treat-

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ed equally, irrespective of share size,

which means that they all have access to

the same level of service, including stan-

dard availability guarantees, opportunities

for multiple aircraft use, and upgrades and

downgrades to larger and smaller aircraft.

Flexjet also offers two international pro-

grams, but shifted the format from frac-

tional ownership to premium-quality char-

ter. Flexjet Europe operates as a charter

broker drawing on a network of top inter-

national charter operators that use late-

model Bombardier aircraft. Owners can

purchase block hours in advance, which

provide additional cost benefits. A similar

Flexjet Asia service provides business air-

craft throughout the Pacific Rim. Non-

Flexjet owners can take full advantage of

these programs.

Bombardier Flexjet was recently desig-

nated the official private aviation solutions

provider for the PGA TOUR, offering

everything from Flexjet fractional owner-

ship to individual and shared charter and

shuttle flights. Not only does the arrange-

ment save valuable time, it eliminates

travel fatigue. Professional golfers have a

grueling schedule, and most play in more

than 25 events throughout the season.

“Airline wear and tear does factor into

their play,” notes Ed Moorhouse, PGA

TOUR executive vice president and co-

chief operating officer. The Flexjet pro-

gram allows players to fly comfortably

and arrive relaxed and in a better state of

mind. The PGA TOUR golfers also can

make short-notice flight arrangements if

they don’t make the Friday cut. That gives

them a day or two with their families that

they might not ordinarily have if they had

to rely on commercial flight schedules.

CITATIONSHARESOne of the newest entrants to the new-

jet fractional ownership market is Cita-

tionShares. The company was created

two years ago as a joint venture of Cessna

Aircraft and Tag Aviation, one of the

world’s largest flight management and

charter operators. CitationShares initially

focused on a northeast U.S. market using

shorter-range light jets such as the six-pas-

senger Cessna Citation CJ1, which is the

most affordable new jet in a fractional

ownership program, and the Citation

Bravo. Now CitationShares has extended

its reach across the nation with regional

programs from coast to coast and sells

fractional shares in the Citation Excel,

which offers stand-up headroom, a mid-

size cabin and a small price tag.

COMMAND SHAREFar Hills, N.J.-based Tikal Aviation Ser-

vices created one of the most unique and

cost-effective business travel solutions

with a regionally based, fractional owner-

ship program called Command Share. The

program offers highly affordable flights in

a range of pre-owned aircraft including

fully refurbished Socata TBM 700 turbo-

props and Cessna Citation II business

jets. The 350mph single-engine propjet is

perfect for two or three passengers while

the Cessna Citation twinjet carries as

many as seven comfortably.

All aircraft are flown by two-pilot, pro-

fessionally trained crews and each

plane is equipped with the latest-tech-

nology instrumentation, air/ground tele-

phones, DVD players and stereo sound.

In addition, full concierge assistance is

available to handle ground transporta-

tion, rental cars or any additional pas-

senger requirements.

Originally launched in the Northeast,

Command Share bases now are located

throughout the country and regional

flights will soon be available nationwide.

The primary coverage area with guaran-

teed availability is within 500 miles of the

base airport with a surcharge added for

flights outside that area.

One Minneapolis-based Command

Share owner who previously flew millions

of airline miles to places like Fargo, N.D.,

and Lincoln, Neb., not only eliminated

commercially dictated overnight stays but

found that he could complete as many as

four visits in one day, cutting travel time,

inconvenience and expense by colossal

amounts. Another New Jersey-based

owner who flies regularly to Nantucket,

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Mass., for business converts a nine-hour

road and ferry trip to a quick hour and a

quarter flight in the TBM 700.

Tikal has made an outstanding com-

mitment to safety and customer service

with the goal of providing affordable,

efficient regional travel. Based on the

current level of customer satisfaction it

appears that Command Share will be

flying high across the nation.

Flight Log HERMAN MILLER, INC.

Founded in 1923 in Zeeland, Mich.,

Herman Miller is one of the nation’s pre-

mier designers, manufacturers and dis-

tributors of furniture and work environ-

ments for business and industry.

Experiencing the company, meeting with

executives, seeing the products and dis-

cussing customers’ needs is a funda-

mental driver for sales, particularly when

a client is spending hundreds of thou-

sands to millions of dollars. But Herman

Miller had a significant problem: Bringing

customers to western Michigan via Grand

Rapids, Detroit and other awkward airline

routings was protracted and trying. As a

result, the company turned to business

aircraft to deliver clients conveniently to

the front door.

“Business aircraft give us an enor-

mous competitive advantage,” says

Barry Hages, vice president, sales ser-

vices. “Our ability to be face-to-face

with key decision makers here in our

corporate setting is vital. If we can

reduce their travel time by a day or

more, they are more likely to visit us

and eventually work with us, and that’s

where a business aircraft really makes a

substantial difference.”

Initially, Herman Miller operated its own

jet, but the company discovered that frac-

tional ownership offered substantially

greater benefits and purchased 400

annual hours — a half share — in a Bom-

bardier Flexjet Lear 45. Delighted with the

service, Herman Miller recently renewed

its five-year Flexjet agreement. “It has

also freed up capital to use in many other

ways,” says Hages.

There are as many as 700 client visits

to Zeeland annually, and while some

groups come by road or by airlines, well

over 50% fly in from across the nation

and Canada on Flexjet. Many customers

are from locations where commercial

travel is exacerbated by connections and

delays, not to mention the difficulty get-

ting to Zeeland from just about anywhere.

Using the business aircraft, customers

depart from convenient, nearby airfields,

fly direct and land minutes from compa-

ny headquarters. Hages points out that

customers don’t feel pressure about

having to catch the last airline flight

home, so they can remain focused on

business. “Our plane won’t go without

them,” he says.

The jets are used exclusively for cus-

tomers — executives fly commercially —

so fractional ownership eliminated costly

empty-leg flights that were incurred send-

ing the company’s wholly owned jet for

customer pickups. “We also have the

flexibility to trade hours for an aircraft with

greater range or a larger cabin,” says

Hages. “As a matter of fact, we can have

four aircraft in the air simultaneously, and

it is not unusual for us to have that

number of groups on their way to Michi-

gan or on their way back,” he says. “If we

had to schedule around our own aircraft,

we would lose a lot of opportunity to

bring clients in, and that opportunity cost

is significant,” he adds. “Multiple aircraft

when we need them is one of the

biggest advantages for us.”

Herman Miller’s mission is to create

great places to work enabling people to

be as productive as possible. The compa-

ny plane goes hand in hand with that aim.

“The airplane is just another productivity

tool,” says Bob Hieftje, Herman Miller’s

director of customer experience. It

enables Herman Miller customers to save

time and adds convenience and flexibility

to their schedule. “It does that really

better than anything else,” he says.

“Our business is built around long-term

relationships, and the airplane plays an inte-

gral role in creating those,” adds Hieftje.

“We want to make their trip as convenient

as possible and make the absolute best

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use of their time. Time spent with the cus-

tomer is absolutely precious.”

RELIEVER AIRPORTS –ESSENTIAL ACCESS

While thousands of airports across the

U.S. serve communities where airline ser-

vice is unavailable, business and general

aviation airports also surround major met-

ropolitan areas and provide efficient, con-

venient access to the community.

Called reliever airports, most of these

smaller airfields provide relief from the

ground and air traffic delays at major air-

line hubs. Many of these reliever airports

such as Miegs Field in Chicago are much

closer to the downtown areas, and

others like Fulton County and Dekalb-

Peachtree in Atlanta are strategically

located near industrial and office parks

that are often the final destination for

business travelers.

Opa-locka, which serves Miami, Fla.,

is a similar example. “Although its run-

ways can handle airliners, Opa-locka is a

vital international business aircraft gate-

way offering fast access to downtown

Miami and Miami Beach and we have

none of the delay and congestion asso-

ciated with Miami International,” says

Fabio Alexander, president of Miami

Executive Aviation, an executive air ter-

minal at the airport.

Opa-locka is particularly convenient for

charter and business aircraft passengers

transferring to or from airlines at Miami

International and Fort Lauderdale airports,

which are both about 15 minutes away by

road. With customs available daily until 10

p.m., this popular reliever airport also is a

magnet for international flights. In addi-

tion, an empowerment zone surrounding

Opa-locka is making the airport a strate-

gic location for new business develop-

ment. The federally funded zone provides

attractive tax incentives for companies

establishing operations in the area.

While executive terminals at business avi-

ation airports across the country traditional-

ly have been pit stops for refueling and

unloading passengers, Alexander’s Miami

Executive Aviation is part of an industry

renaissance that places the focus on the

business traveler versus the business air-

craft. Of course, fueling, catering and other

aircraft services remain important offerings,

but passengers’ needs are a top priority.

At this architecturally ingenious execu-

tive terminal, for instance, aircraft as large

as Gulfstreams pull up under a huge

canopy enabling passengers and crew to

disembark fully protected from the

weather. Inside, in addition to the com-

fortable passenger lounge and quiet pri-

vate areas, Alexander developed what he

calls an aviation super store that sells

exclusive goods ranging from Breitling

watches to Greg Norman fashions to cos-

metics and other travel essentials plus

discount arrangements with nearby Saks

Fifth Avenue in exclusive Bal Harbor. Spe-

cialist concierge services also are avail-

able that include personal shopping,

arrangements for entertainment and

sporting events, and just about any other

business travel need, in addition to the

basic hotel, dining and car reservations.

In a move to enhance executive termi-

nal functionality, Alexander also is capi-

talizing on the growing trend for corporate

jet travelers to hold business meetings at

the airport rather than at downtown

offices. Three conference facilities are

available offering state-of-the-art audio-

video equipment and an elegant, profes-

sional environment that is perfect for pri-

vate meetings, presentations and other

business needs. In addition, catering is

available for lunches and dinners. “After

all,” Alexander says, “if you’ve flown in

here at 500 miles per hour, there is no

point losing time on the ground.”

Flight Log WAL-MART

Managed entirely from its Bentonville,

Ark., home office, Wal-Mart Stores, Inc.,

with more than 1.3 million associates

worldwide, is the nation’s largest employ-

er — with the exception of the federal

government — and operates more than

3,200 stores, distribution centers and

SAM’S CLUBS in the U.S., plus 1,100

facilities in 10 other countries. Wal-Mart

Advertisement 15 The Enlightened Business Traveler

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keeps close tabs on its global empire

with 27 company aircraft. “These are

essential business tools and a very good

reason Wal-Mart has eliminated the need

for regional offices in the U.S.,” says

Duane Futch, Wal-Mart’s director of

global travel services. The corporate air-

craft fleet has proven a cost-effective

solution for a company that watches its

margins like a hawk.

Every morning between 6:15 and

6:45, Wal-Mart jets with five or more

passengers aboard depart Rogers

Municipal Airport, just minutes from the

company’s offices. Flights head in all

directions and each one makes one to

six stops, dropping associates off and

picking others up in a ballet that contin-

ues throughout the day. Every daily per-

formance begins with a new script and

cast of characters, and routings and des-

tinations are rarely the same.

Orchestrated by a scheduling depart-

ment and computer system that would

do the Pentagon proud, Wal-Mart’s air

force moves more than 30,000 people

annually to essential destinations. With a

Wal-Mart in virtually every U.S. township,

about 25 new stores added each month

and visits made at least twice per year at

each facility, the jets log about 15,500

flight hours annually.

“Although we do have airline service

nearby, every flight requires connections,

and our stores are in small towns, not in

the major cities where the airlines go,”

says Futch. That would demand six to

eight hours of travel. “The key benefit of

our corporate airplanes is that our associ-

ates are able to get to the stores today.

The time saving is critical, and they can

do their jobs more effectively.” These

business aircraft undoubtedly explain how

the world’s number-one retailer maintains

its competitive advantage.

Regional vice presidents are a critical

facet in the Wal-Mart management struc-

ture and take first priority in commanding

a trip. “It is extremely important that we

get our vice presidents into the field with

their staffs, because they are really

responsible for store operations,” says

Futch. On average, five passengers will

be aboard the eight-passenger Learjets.

If seats are available, the top executives

and other associates can ride as well.

“There is no other way to get our

people to the stores and distribution cen-

ters as quickly and cost effectively,” says

Futch. In addition, the flight schedule

allows everyone to be home by early

evening for family dinner, school band

performances and other events, unless

they need to remain in the field. It is a

major morale booster, especially for those

who travel the most.

“The flight department allows us to be

as global as we need to be at a very low

cost,” says Futch. Wal-Mart’s buying

power also allows the company to oper-

ate its fleet at about a 20% lower cost

than the average corporate operator, he

comments. That means with two pas-

sengers or more, Wal-Mart is probably

beating commercial airfares. But that isn’t

the point, Futch says. It’s about creating

the time to provide customers with “high

value, low prices and a warm welcome.”

CHARTERAircraft charter can be the most cost-

effective way to acquire business aviation

benefits. It is also the most flexible. You pay

for as much as you need, whenever you

need it, without any initial capital investment

or ongoing contract, and you are never tied

to a fixed number of hours. Each time you

travel you can select an aircraft best suited

to the task and the budget, and the cost

remains the same irrespective of the

number of seats filled. Charter is not about

airplanes, however. It’s about travel service,

points out Jet Aviation’s Jamie Barrett,

senior vice president, Charter Services

North & South America. Charter is a door-

to-door business travel service delivered

with speed and efficiency, he emphasizes.

According to industry sources, charter

interest is up considerably this past year.

Barrett confirms this and attributes the

increase to airline security concerns and

the inconvenience and added delays

associated with commercial travel. Busi-

ness travelers are focusing on safe, fast

The Enlightened Business Traveler Advertisement 16

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and effective travel alternatives. Critical

timing and flexibility is essential in the

current economy, and air charter provides

that leverage, says Bassett. “Charter cus-

tomers are increasingly using business

aircraft to maximize their efficiency,” he

points out. “You can travel on your sched-

ule, not an airline’s, and you travel in pri-

vacy, safety, comfort and with the utmost

in time-saving efficiency.”

Jet Aviation is responding to this

growing charter demand in unique

ways. To emulate the consistency and

service that fractional ownership pro-

vides, Jet Aviation created its own fleet

of similarly outfitted Gulfstream jets

available for charter with seating for 11

to 14 passengers. Called the Private

Fleet, the aircraft are all owned, oper-

ated and maintained by Jet Aviation in-

house and are audited to the highest of

safety standards by Wyvern and

ARG/US, two highly reputed safety

auditing firms. Each aircraft is equipped

with the latest-technology communica-

tions, information and entertainment

systems, including flight phones, Air-

show and VHS, CD or DVD players.

Taking advantage of its Private Fleet,

Jet Aviation also established a new on-

demand charter service with one-way

pricing between New York and Los

Angeles. It is a fresh perspective on

traditional charter, which is typically

priced on a round-trip basis.

Flight LogWW GROUP

In the world of Weight Watchers,

Florine Mark is a legend. In 1966, she

founded WW Group, based in Farming-

ton Hills, Mich. It is now the largest

Weight Watchers International franchise

with 800 locations in the U.S., Mexico

and Ontario, Canada. And while Sarah

Ferguson, Duchess of York, is the

spokesperson for Weight Watchers

International, Florine Mark reigns

supreme as the icon of her own fran-

chises that stretch from Michigan to

New England.

Company Vice President and board

member Dr. Richard Mark calls Florine,

who stars in her own commercials, the

Sarah Ferguson of Michigan. “After all,”

he says, “Florine has been doing Weight

Watchers commercials for 35 years.”

She is intensely involved in Weight

Watchers management and marketing

functions and a highly regarded author

who is sought after as a motivational

speaker throughout her network.

Commercial flight delays, plane

changes and the grueling nature of air-

line travel had taken their toll. The WW

Group executive team realized that to

standardize a program serving 150,000

members, supervise 4,000 employees

and expand a network throughout 13

states and three countries, there had to

be a more efficient way to travel.

A company airplane was the answer,

and fractional ownership looked like the

best approach. Considerable research

brought Dr. Mark to Flight Options,

where WW Group invested in a one-

eighth fractional share of a Raytheon

Hawker 800 business jet. “It has

become an essential tool for us,” Dr.

Mark reports. “Now we can take five or

six people and meet with area man-

agers in three different states the same

day,” he says. “They can do work while

they’re on the airplane, they arrive, take

care of business and get back the same

evening. Then it’s business as usual

here in the office. It’s amazing.”

Senior executives make frequent use

of the plane and normally bring support

staff. “Usually anywhere from four to

eight people are on board,” says Dr.

Mark. “We try to fill the seats because

you can do it for the same cost.” While

the ultimate goal is placing travel time

on a diet and gaining control of one’s

schedule, Dr. Mark points out that with

six or more aboard, the travel cost is

comparable to commercial airfares.

“The Flight Options program has been

an enormous benefit for us,” says Dr.

Mark. WW Group will probably increase

its share size from 100 to 200 annual

hours. “We love it,” he says. “We always

arrive on time, the crews are amazingly

helpful and the service is just great.”

Advertisement 17 The Enlightened Business Traveler

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Flight LogIOWA GLASS

Based in Cedar Rapids, Iowa, with

more than 140 retail shops throughout

the Midwest, the Dakotas and beyond,

Iowa Glass is a leading auto glass retail-

er and distributor as well as a whole-

saler of DuPont automotive finishes.

Each day, Iowa Glass retail and wholesale

glass sales, customer service, warehouse

and regional managers head out to meet

with customers and frontline managers at

retail stores in 22 states. Many trips are to

places like Sioux Falls, S.D.; Lawrence, Kan.;

Fayetteville, Ark.; Salt Lake City, Utah; or

Scottsbluff, Neb., which can take nearly a

day to reach by airline. Often, the trip from

Cedar Rapids means departing a day early.

Travel time was controlling the compa-

ny’s destiny. “We knew the limitation to

our growth was the ability to communi-

cate face-to-face with our people,” says

company President Steve Dummermuth.

“If we were going to expand, we knew

we needed something else other than

the airlines.”

Dummermuth discovered the perfect

answer. Today, he attributes Iowa Glass’s

outstanding success in a geographically

diverse market to its business jet. The

company’s small-cabin Cessna Citation

Bravo can fly nonstop to either coast,

offers seating for eight passengers and

logs an impressive 600 hours annually,

often stopping at two or three locations

each day. “The time saving is enormous,”

says Dummermuth. In the Citation, most

flights are less than an hour or two.

“That’s where the jet really pays divi-

dends,” he says. “We can conduct a

much more effective business day, and

we gain significantly.”

On a recent trip the company CFO and

auto glass division manager headed for

St. Cloud, Minn., after dropping the auto-

motive finishes manager in St. Paul for a

client meeting. “The time spent on the

flight is invaluable,” says Dummermuth.

“There are no interruptions and we can

discuss business and have meetings that

are difficult to hold in the office.”

While Dummermuth uses the plane

infrequently, he encourages his employ-

ees to take full advantage. “It’s there to

help everyone at Iowa Glass do a better

job,” he says. On most trips, passengers

are home by early evening, which means

more quality family time. Employees are

relaxed, refreshed and enthused, “and

they are much more effective the next

day,” he acknowledges.

“The company plane has turned out to

be a powerful business tool for us, and

without it, we could never have expand-

ed as we have,” Dummermuth says. “We

are currently looking at new markets in

the Southeast that are about 900 miles

from here. There is no way that we could

manage business units that far away

without our plane.”

SUPER SHUTTLERegularly moving between company

headquarters, plants and facilities, vast

numbers of company road warriors world-

wide lose mega-thousands of productive

work hours annually waiting at airline

gates, making connections and taking

exhausting road journeys to places that

they visit with monotonous frequency.

Plane makers like Brazilian aircraft man-

ufacturer Embraer realized that a small air-

liner used as a corporate shuttle on fre-

quently traveled routes, which are not well

served by airlines, could be the perfect

solution for recapturing precious time lost

by weary business travelers. Enter the

Legacy, Embraer’s newest business jet.

The aircraft arrives in the market at a piv-

otal time when companies are clamoring

for cost-effective ways to increase busi-

ness efficiency.

The Legacy, which was first delivered

this year, incorporates the best features of

Embraer’s highly successful 37-seat

regional airliner by combining a large-jet

cabin with a highly functional, comfortable

business interior and a price tag that com-

petes with super midsize business jets.

As a shuttle, the aircraft can be config-

ured in a variety of ways from business-

class seating for 16 to a more utilitarian

Advertisement 19 The Enlightened Business Traveler

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37-passenger version. With 20 passen-

gers aboard, the Legacy can easily fly

more than three-quarters of the way

across the U.S. nonstop. Embraer is opti-

mistic about this market as more and

more companies realize the value of

scheduled shuttle operations in light of the

increasingly time-consuming nature of

commercial airline travel.

The Legacy also has another niche.

There is strong interest in an economi-

cal, large-cabin executive aircraft

designed as an airborne office and con-

ference facility for 10 to 16 passengers.

In this configuration, the Legacy will be

capable of nonstop transcontinental

routes or flights from northern Europe to

the Middle East. The spacious cabin

offers numerous interior options, and

customers can choose from a wide vari-

ety of layouts. Satellite communications

and conventional air/ground telephones

including fax and data-link capability are

standard, and high-speed Internet, live

TV and just about anything that you

would want on an airplane are available.

In addition, the 240-cubic-foot baggage

area offers 50% more space than many

large-cabin corporate jets.

Conceived with the reliability, durabil-

ity, maintainability and economical oper-

ating costs of an airliner, the Legacy

also offers the practicality of a business

jet. In either shuttle or executive config-

uration, even with small passenger

loads, it will beat airfare costs, save

immense amounts of time and provide

an amazingly productive work environ-

ment, including virtually any office

amenity desired. This efficient, new

Brazilian aircraft arrives at a crucial time

when efficiency and value are key fac-

tors in the profitability equation of global

businesses today.

Flight Log LOWE’S COMPANIES INC.

With 7 million customers flocking to its

stores each week, it’s no wonder that

Lowe’s Companies Inc. is one of the

fastest-growing retailers in the U.S. This

do-it-yourself home improvement giant

claims more than 790 outlets in 43 states

with plans for an additional 123 stores by

year’s-end.

Headquartered in Wilkesboro, N.C., at

the foothills of the Appalachian moun-

tains, Lowe’s closest airline links are

Greensboro and Charlotte, N.C., an hour

and a half away, which means that travel-

ing just about anywhere commercially is

an all-day affair. That’s why for the past 45

years, says Billy Shomaker, Lowe’s direc-

tor of aviation, “Business aircraft have

been vital tools in helping Lowe’s grow.

The company planes were essential in

enabling us to expand geographically.”

Currently indispensable business

improvement tools are three Cessna

Citation V Ultras and two Dassault

Falcon 50 EXs with a third Falcon antici-

pated shortly. Although Lowe’s people

are frequent commercial airline flyers,

the company jets carried 6,300 passen-

gers last year. Senior executives and

managers use the planes daily to visit

stores across the nation. “Key decision

makers, real estate development man-

agers and merchandisers need to be out

in the field,” says Shomaker. “They use

the company planes because their time

is too valuable to waste waiting for air-

line flights. We can visit three or four

stores in a day and maximize the use of

their time, and they remain productive

while they travel.” By airline they would

be lucky to reach a single store in a day.

“We more than triple their productivity,”

says Shomaker. He points out that with

the speed, range and capability of the

Falcons, passengers can be landing in

Albuquerque, N.M., before airline pas-

sengers have boarded in Charlotte.

Normally all five aircraft are going in

different directions and more than half

of the seats are filled, which maxi-

mizes the effectiveness of the flight.

Most trips return the same day,

Shomaker comments. “Lowe’s is a

very family-oriented company and, if at

all possible, we do try to get people

back with their families at night.”

With the ability to land on shorter run-

ways, he points out, “We can get close

to most rural locations because general-

Advertisement 21 The Enlightened Business Traveler

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ly there is an airfield within five or 10

miles of virtually anywhere.” In large met-

ropolitan areas, Shomaker considers

reliever airports the best bet because

ground travel times and air traffic delays

can be minimized.

On a recent five-day West Coast trip

and back, regional vice presidents, a

senior vice president of operations and

their staffs hopscotched across the nation

calling on stores and regional offices.

“The laptops were out and they were on

the phones, sending faxes and discussing

business for the entire flight,” says

Shomaker, who calls the plane “the office

on wings.”

Flight LogGLOBAL ELECTRONICS MANUFACTURER

Based in the Northeast, this electronic

equipment manufacturer with worldwide

business interests requested anonymity,

but wished to underscore the extraordi-

nary value that it accrues daily from its

business jets. The company operates two

intercontinental Gulfstream GIVs, used

for domestic and international flights, plus

a Dassault Falcon 2000 used predomi-

nantly throughout the nation. These air-

craft are an essential aspect of this com-

pany’s ability to serve a global market,

says the company director of aviation,

who had some compelling comments

about their effectiveness.

Q: WHAT VALUE DO YOU PLACE

ON A BUSINESS JET?

A: I view these airplanes no differently

than a copy machine. If you’re a large,

dynamic, competitive company, you can’t

run your business without airplanes as

one of your business tools. You just won’t

be competitive.

Q: HOW DOES THE COST OF A

BUSINESS JET FLIGHT COMPARE

WITH THAT OF AN AIRFARE?

A: It doesn’t compare. Airlines sell

travel, and they sell it cheaper in most

cases — but not all cases. Our product is

time, not travel. A business aircraft offers

a different set of values — time, flexibili-

ty, productivity.

There are times when we are cheaper

than airlines; however the airlines can

never deliver time. Based on the Falcon’s

direct operating costs compared with a

full coach airline fare, we can break even

on a trip from the Northeast to Wash-

ington, D.C., with only four passengers

aboard. On a flight to Chicago, we break

even with five passengers, and that’s

not considering the utility and time value

of the airplane. We can fly the Gulf-

stream to Europe and we break even

against business class fares with six

aboard. That doesn’t account for the fact

that our executives travel on their sched-

ule and not an airline’s.

Q: HOW DOES PRODUCTIVITY

ENTER INTO THE EQUATION?

A: Our airplanes are configured to

reflect an office suite, not an airline inte-

rior. Every work feature in the office is

represented in the cabin, so we have

extended the workplace into the air-

plane. It’s as if our executives never left

the office.

Managers and executives are always

having meetings and discussions through-

out the flight, so it’s not unusual to have a

group planning session up front while

another group is working on something

else around the conference table in the

rear of the cabin, or they might work up

front and later have a meal around a table.

We have computer hookups so that

they can network a laptop into a printer or

fax machine, and we have air/ground tele-

phones and satellite communications so

they are never out of touch. We neutral-

ize the effect of travel completely by elim-

inating any time loss.

Q: DO THE THREE AIRCRAFT

PROVIDE A COMPLETE BUSINESS

TRAVEL SOLUTION?

A: No. That’s why we use fractional own-

ership to supplement our own fleet. We

have fractional shares in a NetJets Cessna

Citation X and a Gulfstream GIV, and we

make a decision on which aircraft to use

based on what makes the most sense. For

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Page 16: Written and produced by Mark Patiky The Enlightened ... · Made in America, Sam Walton, Wal-Mart’s legendary founder, compiled a list of 10 factors that unlock the mystery to his

example, we use the fractional shares to

eliminate the cost of some empty, dead-

head flights, and we use it when we need

multiple aircraft in several locations, such

as when we have board meetings and we

need to bring board members to a central

location. We may use the fractional-share

aircraft if we have crewing issues after a

long-duty day, and we may use it when we

have only one or two passengers going on

a short flight. In that case, we can

exchange hours for a smaller aircraft in the

NetJets fleet. Fractional ownership pro-

vides considerable operational flexibilities

that we didn’t have before.

MAINTAINING A COMPETITIVE ADVANTAGE

With the global economy in flux, there

isn’t a more opportune moment than

now to build trust, confidence and alle-

giance with customers, suppliers, part-

ners and employees through firsthand

experience and face-to-face relationships.

This is where a business aircraft has

immense value — in creating time to

build bridges for future success. With a

business aircraft, rural and remote mar-

kets become easily accessible, reaching

out to customers takes on a new dimen-

sion and maintaining control of an expan-

sive organizational structure becomes

much more achievable.

In discussing the benefits of business

aircraft, one company executive who out-

sources the management of the compa-

ny jet declared, “The plane completely

changed the way I work. It increases my

efficiency by 1,000%.”

Another company president whose

firm owns and operates a small-cabin jet

confided that the plane enables him and

his employees to reach and serve a

market more effectively than he had

ever imagined. “I’m there, we sell, I

leave,” he says.

Yet another top executive whose orga-

nization uses fractional ownership com-

mented, “If there is anything that has

made our company successful, it’s the

quality of our people, and that goes back

to how you take care of them. The

people who are most typically using our

airplane are our most valued associates,

and anything that we can do to make

their lives better will make them more

productive and happier.”

As time passes, a fundamental truth is

becoming evident. Airline travel won’t get

better, and chances are that it will

become increasingly more time con-

suming, frustrating and inconvenient. It’s

simply a function of space. Only about

500 airports in the U.S. can accommo-

date airline traffic, and although these

major airports take about 20 years to

develop from planning to completion, in

the past 30 years only two or three new

airports have been constructed and less

than eight new runways were added at

existing airports. There is virtually nothing

on the drawing boards today, so there is

really nowhere to grow. It is axiomatic

that as airline traffic increases, conges-

tion and delays are sure to follow.

On the other hand, business aircraft

have the freedom to land at 5,000 or

6,000 airports in the U.S. and thousands

more around the world, minimizing travel

time and maximizing productivity. They

are essential benefits now, and they’ll be

even more valuable in the future.

The vice president of a U.S.-based con-

struction-equipment manufacturing firm

remarked, “Using a business aircraft, we

can take a three-day airline trip and con-

dense it into a single day. It added three

more productive weeks to my schedule

last year. Because of the delays and incon-

venience of commercial travel,” he says,

“we would have canceled a lot of impor-

tant trips and lost a lot of business if we

didn’t have our company plane. When you

think about it, how can a company afford

to be without one?” ■

Written and produced by Mark Patiky,

president of Miami-based Beehive

Communications Inc.

[email protected]

Principal photography: Paul Bowen

Edited by Wesley Nam

Designed by Joe Zerbey

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