More and more company’s are turning to private business jets to get around the country but is it really necessary or is it just the perfect executive toy ?
When it comes to the modern CEO they’ll be quick to tell you the sky’s the limit with the use of private business jets on the rise. But is that rise the result of more business travel or an increase in personal use?
USA Today reported that in 2004 more than 100 senior managers rang up more than $100,000 in private business jet costs while more than 250 CEO’s rang up over $50,000 in personal flights. Since then it is estimated that those numbers have more than doubled.
There are many big companies that allow their CEO’s and top executives to use the company’s private business jets for personal travel. If done correctly it would be taxable income for the employee but instead companies are leaving the shareholders to foot the bill.
In some cases it’s not just a perk. Some large company’s require their top executives to use private business jets since 911 to ensure their safety and the safety of their families. You will not find people like J.P. Morgan, Herbert Zarkin, Donald Trump, or Bill Gates on commercial flights.
Some executives even get to keep their rights to the use of the private business jets even after they retire. That’s a real nice benefit! Other agreements allow for the wife and even children to fly free to any destination as long as the jet is not already booked for company business.
Private business jets have grown in popularity post 911 with so many more security concerns. Add that to a tax breaks that let executives fly for really cheap and companies enjoy the tax break, and the recognition that personal flight time is a perk that keeps CEO’s happy and more and more large companies are adding private business jets to their fleets. Since the 1990’s the leasing or purchasing of private business jets has grown by as much as 75%.
The tone for the use of private business jets has definitely been set with more and more CEO’s, executives, employees, and their families taking advantage of the benefits private business jets can offer.
It provides a safe, secure, atmosphere where you can put your feet up and relax or get some work done on your laptop. No standing in line ups at the airport for hours waiting to clear security. No restrictions on what you bring on the plane, no having your luggage taken apart and put back together. With private business jets you are in a league all your own.
There is a perception that private business jets cost too much to lease or buy but actually that’s not true. If you calculate the number of commercial flights that just your CEO’s and executives take in a year you’ll be shocked at the amount of wasted money, never mind wasted time.
Add the ability to provide your staff with a nice perk and you’ll quickly see the advantages of having private business jets in your fleet. Why not discover what others have known for years.