Bailed-Out Corporations Flying Their Aircraft Less
Finally... evidence the policies set
forth by government stimulus plans are actually working, at least
for some aviation companies. In something of a mixed blessing,
charter broker Revolution Air tells ANN it has seen an increase in
corporate charter flights from companies receiving government
financial assistance... as those companies are discouraged from
maintaining their own corporate aircraft fleets.
The company attributes the increase to updated restrictions
related to participation in TARP (Troubled Assets Relief Program),
EESA (Emergency Economic Stabilization Act), and other government
financial assistance programs.
Revolution says the United States Treasury announced new
restrictions last month on executive compensation for organizations
that receive government assistance in handling problems related to
the current economic climate. Included in these restrictions were
expenditures related to aviation services... which are under tight
scrutiny by both organization CEOs and the government.
With these restrictions, many Fortune 500 companies, smaller
organizations, and financial institutions are selling their
corporate aircraft, closing associated flight departments, and
backing out of aircraft purchase agreements. However, these
organizations still have a strong need for private business travel
to attend high-level and essential corporate meetings,
negotiations, and events.
"It's no secret that corporate flight departments are currently
being regarded as luxury items for businesses, which is rather
unfortunate given their necessity in today's worldwide competitive
corporate environment," said Ron Goldstein, President of Revolution
"Even though the government would
prefer for all of these organizations to use commercial
transportation for business travel, it is not always a viable
option. For instance, high-level executives require certain
security measures for not only their personal safety but the safety
of sensitive documents they travel with, which is not feasible on a
commercial airline. Revolution Air charter flights offer an
affordable solution that provides privacy without undue costs."
According to Goldstein, changes in the economy have also changed
the purposes for use of charter travel. "Previously, when
high-level individuals chartered aircraft, it was for business as
well as personal use," said Goldstein. "Now, Revolution Air sees a
trend forming where corporate executives use charter aircraft for
business travel and rely on commercial travel for recreational
activities such as golfing in Naples or skiing in Aspen."