Corporate aviation, or
business aviation, is believed to save a company money based upon the argument
of “time is money.” Assuming the corporate businesses that are using corporate
aviation are financially well-off and has a series of constant cash flows to
sustain their company, I do believe that corporate aviation departments save a
company money. According to a Forbes article “Business aviation and the unfair
advantage,” the writer makes valid points about how corporate aviation saves
companies time and money. “Companies
are taking to heart the old adage “time is money” as they seek increased
productivity and profitability, while providing healthier, happier work
environments for their employees. And they’ve found several instances where
business aircraft accomplishes both — such as when a sales team has several
places to go in a short amount of time, when more than one employee is
traveling on the same itinerary, when their destination isn’t a major airline
hub, or when airline schedules simply don’t fit the company work schedule” (Donnelly, 2012). The article goes on to say that
corporate/business aviation is bypassing the airlines, and it actually saves
the employees money as well. They are spending less money by being able to eat
at home or taking their own meals with them, and it also saves on ground time;
meaning that it’s less money the company would have to spend on car rentals and
insurance as well as the amount of time that’s wasted traveling from the
airport to the actual destination. To me, corporate aviation is practical
depending on the type of company work that is being sought. Moreover, sports
teams will often make the choice to go the “private jet” route as well. Not
only may it save the team organization time and money, but it can be generally
flexible. “What makes business aviation so
useful for athletes and their colleagues is not just that it is the means to
avoid crowded airlines and public terminals, but smaller airplanes enable them
to use many more airports than are available to airlines. The scheduling
flexibility is also key, allowing athletes to travel when they need to, on
short notice if necessary and without having to arrive at the airport two to
three hours early” (Thurber, 2007).
To transition, as a management student, I have not particularly paid
great attention to corporate/business aviation. As I have researched upon the
various different corporate careers on the management side of things, I
stumbled upon Walmart and their own aviation department. Walmart’s aviation
department consists of Flight Operations Planning and Flight Operation
Coordinators that creates schedules to maximize the productivity of the
aircraft and flight crews and meets time-sensitive needs of passengers, safely
and efficiently (Walmart Careers, 2015). According to Walmart’s website, the
job opening for an Aviation Manager of Safety specifications include: Act as a liaison
for other country aviation department Safety Management Systems Programs;
Demonstrate up-to-date expertise in aviation safety and applies this to the
development, execution, and improvement of action plans; Establishes safety and
security objectives, and; Manages the development and maintenance of safety
awareness program, among similar objectives (Manager Safety Aviation, 2015).
Furthermore and finally, this brings me to Walmart’s fleet operations. Walmart’s
fleet location is in Rogers, Arkansas near its Bentonville headquarters.
Walmart actually created Beaver Lake Aviation in Rogers for their operations in
1986 (Levin,
Litvan, & Dudley, 2014). About 23,000 of the company's 1.8 million employees
board at least one of Wal-Mart's corporate aircraft in the course of a year. “It is a huge operation," says
Duane Futch, director of global travel services. "There are 22 corporate
jets based in the home offices, two jets based in the Canada home office, one
jet based in our Mexico home office and a turboprop at our Wal-Mart Brazil
unit. (Corp. Fleet, n.d.).
References
Careers. (2015,
January 1). Retrieved February 15, 2015, from
http://careers.walmart.com/career-areas/corporate/aviation/
Donnelly, B.
(2012, August 6). Business Aviation: The Unfair Advantage. Retrieved February
15, 2015, from
http://www.forbes.com/sites/businessaviation/2012/08/06/business-aviation-the-unfair-advantage/
Levin, A., Litvan,
L., & Dudley, R. (2014, August 14). Wal-Mart Air Fleet Gets Taxpayer
Support for Controllers. Retrieved February 15, 2015, from http://www.bloomberg.com/news/articles/2013-08-14/wal-mart-fleet-gets-taxpayer-support-to-pay-controllers
Manager Safety
Aviation Jobs in Rogers at Walmart. (2015, January 1). Retrieved February 15,
2015, from http://jobs.walmart.com/rogers/aviation-﹠-travel/jobid5502986-manager-safety-aviation-jobs
Thurber, M. (2007,
October 1). BJTonline: Business Jet Traveler. Retrieved February 15, 2015, from
http://www.bjtonline.com/business-jet-news/how-private-aviation-helps-sports-teams-score
Wal-Mart Wields
Corp. Fleet. (n.d.). Retrieved February 17, 2015, from
http://www.businesstravelnews.com/More-News/Wal-Mart-Wields-Corp--Fleet/?a=btn
It's interesting to see the management side of things, especially when it comes to corporate aviation. I'm very used to viewing it from a pilot's perspective. From what I have seen, often times corporate pilots deal with most of the flight planning details. I'm sure with corporate giants (like Walmart) the management side does the planning, while pilots might simply be on-call.
ReplyDeleteI found the same article by Donnelly from Forbes. She does a fantastic job listing all the reasons why corporate aviation is a far superior choice for businesses in comparison to commercial aviation. I also chose to speak about Walmart's flight operations. If you make a comparison between their aviation operations and commercial operation, there does not seem to be any major differences between the two. However, as Tyler points out in his blog, this is not the case in every instance.
ReplyDeleteI like what you wrote about how in corporate aviation sports athletes can bypass busy terminals. I can only imagine how hectic it would be getting a sports team full of famous athletes through a busy airport terminal. And with businesses, I believe that the advantage of being able to take a non-stop flight to a smaller airport without having to switch planes at a large hub is worth it in itself.
ReplyDeleteCarly I really did not even think about the use of business aircraft for athletes. I know some huge sport teams do have their own private aircraft but not all. It does make sense for them though. I just wonder what their deciding factor was to purchase an aircraft. Like what their "lets pull the trigger on it" moment.
ReplyDelete