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Responding to Challenges

Business Aviation puts a modern perspective on the old adage that “When the going gets tough- the tough get going-” notes Jack Olcott.

Jack Olcott   |   1st March 2013
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Possibly the world’s most recognized advocate, if not expert on the value of Business Aviation,...
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Responding to Challenges

Business Aviation puts a modern perspective on the old adage that “When the going gets tough- the tough get going-” notes Jack Olcott.

In his study of Business Aviation entitled Face to Face- author David Almy related the tale of two bank holding companies in Alabama- each with a corporate aircraft- that were coping with a recessionary period several decades ago. The larger of the two responded by curtailing its use of Business Aviation to reduce operating costs while the other took the opposite approach and expanded its flight operations. The latter’s management argued that there was business to be won in the challenged economy and the company aircraft was an effective tool for finding customers and expanding market share. When the dust settled and the economy recovered- the bank holding company that elected to use its aviation resources aggressively emerged as Alabama’s largest.

A contemporary study conducted by Nexa Advisors- a consulting firm based in Washington- DC- presents a more comprehensive analysis of recovery during a period of economic difficulty. During the years from 2007 through 2012- a period generally referred to as “The Great Recession”- share prices for companies within the S&P 500 on average dropped in value to about half of pre-recession levels. Examining the difference in financial performance between users and non-users of Business Aviation within the S&P 500 as the U.S economy struggled to recover- Nexa concluded “…companies that use Business Aviation outperform their competitors in key financial and non-financial metrics.

Those same companies are leading the nation’s economic growth in profits and creating jobs.” For availability of the Nexa Advisors report- Business Aviation: Maintaining Shareholder Value Through Turbulent Times- contact the National Business Aviation Association- 1200 18th Street- NW- Washington- DC 20036.

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