Corporate Aviation

Corporate Aviation Comes Of Age

Corporations, both big and small, have always been at the forefront in looking for ways to cut costs. Corporate traveling has hitherto depended on air travel to quite an extent. However, owing to substantial costs involved in purchasing aircrafts for private use, corporate firms have not been able to leverage the aviation sector. Additionally, owing to the economic downturn brought about by a number of factors such as 9/11, corporate aviation has not grown by leaps and bounds. This is set to change with the introduction of small and more affordable aircrafts for private use.

In the past two-three years, there has been a boom in the number of firms opting for corporate air travel. In the past firms had options of either traveling by regular commercial flights or by purchasing their own aircrafts. Both these options had their pitfalls in either not being flexible enough or being exorbitant in terms of cost of acquiring a new aircraft for the organization's use. This trend has taken a downturn in the face of innovative schemes such as fractional ownership or leasing. These allow firms to opt for cost-effective means of acquiring aircrafts for corporate use.

The firms that cater to the corporate aviation sector include manufacturers like Bombardier, Dassault, Embraer and Gulfstream. These manufacturers offer a range of aircrafts with seating ranging from just 4 to a maximum of 19 seats. Additionally, these aircrafts have interiors that are crafted to suit the discerning needs of highflying corporate executives. Some of the attractions these aircrafts offer include customized upholstery, up-market carpeting and woodwork, highly personalized pantry services and even bars with imported glassware.

Although companies stayed focused on cost control mechanisms, there is a feeling that corporate air travel can be made more personalized and enjoyable, yet at a fraction of the cost one incurred earlier. This has been more so given the changes in the business world brought about by rapid globalization. With more and more countries opening up their economies, the demand for corporate aviation has fueled innovations in aircrafts. One such innovation is that of light aircrafts. These aircrafts with seating ranging between two to four help executives travel short hauls, otherwise difficult to travel by road owing to time constraints. Additionally, these aircrafts can be acquired at a fraction of the cost of a luxury jet. These factors have fueled a newfound demand for corporate jets.

With these developments, it is but apparent that corporate aviation has come of age. What was clearly perceived as a luxury few years back is increasingly becoming the chosen route for organizations to foster cost-effective travel.