Monday, February 16, 2015

Corporate Aviation


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

4 comments:

  1. 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.

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  2. I 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.

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  3. I 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.

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  4. Carly 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.

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