Why Companies Utilize Business Aviation

Business aviation is defined as the use of a general aviation airplane for a business purpose. It is essential to tens of thousands of companies of all types and sizes in the U.S. that are trying to compete in a marketplace that demands speed, flexibility, efficiency and productivity. The vast majority of these companies – 85% – are small and mid-size businesses, many of which are based in the dozens of markets across the country where the airlines have reduced or eliminated service.

A company’s decision to utilize business aviation for any mission depends on a variety of factors, including availability of commercial service in the departing or arrival destinations, the number of sites to be visited in a single day, the number of employees traveling, the need to discuss proprietary matters en route, the need to move specialized equipment and a host of other considerations. The following list details some of the primary reasons companies utilize business aviation as a solution to some of their transportation challenges.

  • Accessing communities with little or no airline service.
    Business aviation serves ten times the number of communities (more than 5,000 airports) served by commercial airlines (about 500 airports) This means business aviation can allow companies to locate plants or facilities in small towns or rural communities with little or no commercial airline service. Since nearly 100 communities have lost airline service in the past year, this is important.
  • Reaching multiple destinations quickly and efficiently.
    Companies that need to reach multiple destinations in a single day may elect to use business aviation, because that type of mission could be hard or impossible to complete with other modes of transportation.
  • Supporting the travel needs of many types of company employees.                                                                                                    An NBAA survey revealed that 72% of passengers aboard business airplanes are non-executive employees. Companies often send teams of employees to a given destination because it is the most cost-effective means of transport.
  • Ensuring flexibility.
    Business people don’t always know in advance where or when opportunities will present themselves.In today’s business environment, companies need to be nimble enough to move quickly.Business aviation provides flexibility for companies that need to ensure employees can respond to changing demands and circumstances.
  • Increasing employee productivity and providing security.
    Business aviation is a productivity tool – when traveling aboard business aircraft, employees can meet, plan and work en route. Business aviation also allows employees to discuss proprietary information in a secure environment and without fear of eavesdropping, industrial espionage or physical threat.
  • Providing a return to shareholders.
    Studies have found that businesses which use business aviation as a solution to some of their transportation challenges return more to shareholders than companies in the same industry that do not utilize business aviation.

Embraer Releases Second Quarter 2012 Results

Embraer has released its quarterly results for the year 2012, showing a firm order backlog totaling US$ 12.9 billion.

Highlights:

  • During the 2nd quarter of 2012 (2Q12) Embraer delivered 35 jets to the commercial aviation market and 20 to the executive aviation market (17 light jets and 3 large jets);
  • As a consequence, 2Q12 Revenues reached US$ 1,717.3 million and Gross margin grew from 22.4% in 2Q11 to 23.6% in 2Q12;
  • 2Q12 operating performance was strong and as a result EBIT  and EBITDA  margins reached 11.5% and 15.4%, respectively, for an accumulated EBIT and EBITDA margin of 9.9% and 14.4%, respectively, for the first semester of 2012;
  • Positive operating cash generation of US$ 189.1 million in 2Q12;
  • 2Q12 Net income attributable to Embraer Shareholders and Earning per ADS basic totaled US$ 54.3 million and US$ 0.2996, respectively, primarily as a result of Deferred income taxes generated by the appreciation of the US Dollar during the period, which negatively impacted 2Q12 Net income. Therefore, 2Q12 Adjusted Net Income, excluding deferred income taxes, was US$ 186.5 million

Air Charter Demand Climbs In July

 

Demand for charter flights this month is expected to be up from last year but softer than last month, with the July 1 forward-looking demand index generated by online charter portal Avinode standing at 186.80. This was almost 13 points down from June 1, but still 33 points ahead of where it was 12 months earlier.

This trend was mirrored fairly closely by Avinode’s price index generated on July 1, which was down marginally on where it was 30 days earlier but still between 3.5 and 5.2 percent ahead year-over-year. Actual charter rates paid in recent months generally showed increases of up to almost 8 percent, with the North American market showing stronger increases than other markets.

For example, the average hourly rate for a Cessna Citation Excel in North America stood at $4,378 on July 1–7.9 percent higher than on March 30 and 4.5 percent above Dec. 30, 2011. By contrast, the average rate paid for a Hawker 800 outside North America increased by just 0.37 percent in the 30 days up to July 1, reaching $5,297.53, which was 2.5 percent below the average rate from three months ago.

Trend Vector Aviation has a LinkedIn page

Are you In?  Trend Vector Aviation is proud to announce that we now have a company page hosted on LinkedIn.  Through the LinkedIn page, our clients will have the ability to receive special “LinkedIn only” deals, connect with employees, stay up to date with all of our new programs and/or products, and much more!

LinkedIn is the world’s largest professional network with over 120 million members and growing rapidly. LinkedIn connects you to your trusted contacts and helps you exchange knowledge, ideas, and opportunities with a broader network of professionals.Individuals use LinkedIn for professional networking, connecting, and job searching. Companies use LinkedIn for recruiting and for providing company information to prospective employees.LinkedIn members can search for jobs, join groups, research companies, and network with members of their network.

Companies can post information about the company and job listings on company pages. Companies can also contact LinkedIn members for recruiting purposes.

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