Business aviation big business in 2013
January 16, 2013, 02:38 pm
Business aviation has done well for itself in recent years and looks to be increasing in the future, as a recent study indicates it was able to endure the recession and has already exceeded its pre-recession levels.
“Our analysis of the key financial metrics found that business aviation users weathered the Great Recession of 2008 far better than non-users,” stated the study Business Aviation: Maintaining Shareholder Value Through Turbulent Times. "Among the S&P 500, business aviation users outperformed non-users in every performance category we examined."
A recent report by Forbes however, questions if certain companies should take up business aviation, like General Motors, as they finally paid the U.S. Treasury Department off for bailing them out.
The report said General Motors would be falling into old practices if they were to join the business aviation community. While the company has been making great strides and stock has been rising since paying back the government, the company still trails Ford and shouldn't squander a dime.
“There's no doubt that General Motors is in a better position now than it was four or five years ago, and that's all thanks to the government bailout with taxpayer money,” said Michelle Krebs, Edmunds.com senior analyst. “Still, even with GM buying back its shares, it will be years before we can fully assess the success of the auto bailout. The key is to watch and see if the company falls back into old bad habits.”
GM has not mad any plans to purchase a business aviation jet, but some are refuting Forbes' claims, as business aviation has been an overall success in recent years, despite economic conditions.
“Simply put, General Motors, or any company that wishes to remain agile and competitive in the global marketplace, should consider use of a business aircraft – one of the most vital efficiency and productivity tools available – without concern for unwarranted stigmatization,” said NBAA President and CEO EdBolen.
A separate study shows business travel is expected to increase significantly in 2013. A Frequent Business Traveler magazine survey showed that 33 percent of business travelers surveyed plan on traveling more in 2013 compared to 2012, while half indicated they planned on traveling more compared to two years ago.
Jonathan Spira , Frequent Business Traveler magazine's editorial director, said that as business travel increases, these types of travelers will have a greater impact on the travel industry as a whole as it responds to their needs.
Pilots within the business aviation sector are always reminded to ensure their financial future by looking into pilot life insurance.
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