Business Aviation:Operations and Service Quality by Provider Organisations

Macao, September 2013

Captain Scott Macpherson

Business Aviation:Operations and Service Quality by Provider Organizations

Today’s Aim and Outline: 1. To describe Business Aviation globally

2. To demonstrate the economic importance of Business Aviation

3. To identify the Service Providers and infrastructure necessary for efficient Business Aviation operations

What is Business Aviation?

Any discretionary use of an aircraft in support of business objectives.

• Business aircraft may be owned by the business or chartered; and• May be used to transport people or property;• Explore for new resources; or• For many other uses.

Business Aviation globally: its dimensions• 31000 business jets and turboprops vs 28000 airline jets and turboprops.• 17000 business aircraft operators vs less than 500 airlines.• Worldwide operations, any time, changing destinations enroute.

Business Aviation globally: its characteristics

• Safe: Highly professional operations and excellent safety record.

• Secure: Passengers are known and security is personal.

• Unscheduled: Departure times change with the business need.

• Responsive: Operations to airports all over the world on short notice.

• Direct: to local airports where business is conducted.

Business Aviation globally: its characteristics

• The priority is on time management, efficiency and flexibility.

• Nearly 80 % of operators have only one aircraft.

• Nearly 80 % of passengers are middle management and technical teams (e.g. engineering & audit, etc).

Business Aviation globally: its operational characteristics

A Business Tool

• Business Aviation is a proven productivity tool used by corporations worldwide.

• 75% of fortune 500 companies operate their own aircraft.

• Repeated studies show that corporations not utilizing business aircraft are at an economic disadvantage.

One independent assessment - “…study found that aircraft operators earned 141% more in cumulative returns than non-operators.”

Business Aviation globally: its operational characteristics

Personnel / Client characteristics:

• Uninterrupted personal and team work continues during travel.• Private meetings and presentations in flight.• Client transport directly to company production facilities or projects.• Face to face business deals.• Significantly reduced fatigue = optimal business decisions.

Importance of BA to the economy and municipal prosperity

Regional economic integration, developing and facilitating trade in Asia:• Economic value through job creation, spending and business success.

Studies demonstrate significant societal benefits.

Impact of Business Aviation Examples:

EUROPE - approx €19.7bn gross value added to the European economy.

USA - contribution of $150 bn to U.S. economic output, and employs more than 1.2 million people.

Importance of BA to the economy and municipal prosperity

• Business aviation airports contribute to local economic health.

• E.G. – Teterboro Airport (near NYC) generates 15,554 jobs, $670 million in salaries, and $1.8 billion in sales annually.

Importance of BA to the economy and municipal prosperity

• Opening local and regional airports to business aviation helps to relieve large hub airports.

• Business aviation is a part of an effective company transport system.

• Business aviation does not compete with airlines.

• BA is appropriate when airline travel is not available or cost / time effective.

• A vast number of city pairs are served by business aviation where no scheduled service exists.

The needs of BA to operate efficiently and effectively

• Business aircraft are operated all over the world, sometimes on very short notice.

• Commercial terminals are not suited or appropriate for business aviation.

• Dedicated business aviation facilities are necessary to enhance and take advantage of business aviation capabilities.

Common Business Aviation Flights

• Domestic

• Short distance: 3 to 4 meetings in different towns, returning the same day

• Longer distance: meetings in different small cities, returning through a different city the next day.

• International: 9 flights directly to supplier and client towns and cities over 7 days

Service Providers and their role in efficient operations

• Airlines schedule many airplanes and crews to relatively few airports and can establish their own support at each airport.

• Business aircraft operators fly one airplane with one crew, when required, to a vast number of different airports; therefore Business Aviation operators cannot establish their own support at each airport.

Service Providers and their role in efficient operations

Typical Business Aviation Service Providers

• Fixed Base Operations

• Flight Planning Services

• Maintenance

• Training

Characteristics of an effective FBO

Focus on efficient passenger movement to support business

• Knowledgeable staff with local resources (hotels, car services, catering).• On- site Customs and Immigration services.• Location near access roads with parking available.• Escorted vehicle access to and from aircraft.• Passenger and crew facilities.

Characteristics of an effective FBO

Appropriate services for business aircraft

• Dedicated hangar and ramp with easy access to the FBO facility.• Dedicated parking stands with protection from jet blast and service

vehicles.• Fuel with appropriate quality and distribution systems.• Services (Catering, fresh water, cleaning).• Very high, professional service level.

FBO Networks are effective airport partnersExample: Landmark Aviation

Other Business Aviation Service Providers

Appropriate services for business aircraft (At FBO or by referral)

• Flight Planning Services (trip and performance planning, permit processing, etc.).

• Maintenance (line or heavy overhaul) may be nearby or on-site.

• Aircraft cleaning service, usually arranged by FBO.

• Training (Simulator training providers, online training providers, classrooms may be available at FBOs).

Conclusion• Business Aviation is accelerating worldwide economic integration

and development.

• Policies and practices which enable Business Aviation operations are critical to enhancing and accelerating prosperity.

• Dedicated facilities and services are necessary to attract Business Aviation.

Thank you!