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Business Aviation: An Integral Element of Air Transportation.

Business Aviation is not a substitute for the Airlines- asserts Jack Olcott. Corporations and entrepreneurs use business aircraft to augment their travel needs between locations where airline service is limited or non-existent.

Jack Olcott   |   1st November 2012
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Possibly the world’s most recognized advocate, if not expert on the value of Business Aviation,...
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Business Aviation: An Integral Element of Air Transportation.
Business Aviation is not a substitute for the Airlines- asserts Jack Olcott. Corporations and entrepreneurs use business aircraft to augment their travel needs between locations where airline service is limited or non-existent.

Business Aviation is a partner with the Scheduled Airlines in providing industry with safe and efficient transportation. It is not a competitor. Nor is Business Aviation at odds with the Airline industry. Both forms of transportation are vital to a nation’s wellbeing- and both share a common objective—serving a nation’s business enterprises.

The success model of each mode of transportation- however- differs markedly between the Airlines and Business Aviation. The former is designed to maximize profit for the air carrier; the latter is designed to maximize productivity for passengers. Airlines maximize profits when their aircraft are full of paying passengers- which drives the selection of city-pairs to locations where demand for travel is high (i.e.- cities in large metropolitan areas).

Furthermore- the need to fill seats places downward pressure on ticket price. Only about half of the volume of airline passengers consists of business people - who appear more influenced by schedule than price. A large percentage of Airline customers are flying for personal reasons- including vacations or visiting family members- thus ticket price is a significant factor in their selection of an airline.

Consequently- Scheduled Airlines serve only about 10 percent of the United States’ public-use airports- and the vast majority of Airline flights are between about 10 percent of the locations with scheduled service. Thus finding airline flights that fit efficiently with business schedules is difficult- even between major cities. And travel between rural America via Scheduled Airlines is very time-consuming- often requiring several changes in airliners and inefficient layovers.

As depicted in the pie chart (left)- Business Aviation travels between locations that the Scheduled Airlines either do not serve or do not service with the frequency needed by businesses. More significantly- Business Aviation serves locations that the Airlines do not want to serve- since providing linkage between many cities and towns in the USA would be inconsistent with their business model.

Do you have any questions or opinions on the above topic? Get them answered/published in World Aircraft Sales Magazine. Email feedback to: Jack@avbuyer.com

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