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 Air.

"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."

FMI: www.revolutionair.com