
Shaving Expenses
Pilots (and other aviation professionals) can use their skills and “captain’s prerogatives” to make decisions that save the company money, including:- Not buying more fuel than needed for a flight (including safe reserves, of course!) You fly cheaper when the plane weighs less. Pilots can check fuel prices on AOPA or a similar website.
- Buying lots of fuel where it’s cheap, and as little as possible where it’s expensive.
- Taxiing out on one engine (A Hawker 400 burns 60 gallons an hour on two engines, 30 gallons an hour on one engine. Every 15 minute of taxi time is 7.5 gallons of fuel, or $37.50 at $5 per gallon.)
- Basing a Cessna 172 at one flight school over another saved a leasing company over $900 per month, between hangar rent and insurance.
Proving Value
More importantly than shaving expenses is proving value. If a pilot knows the purpose of a trip (and they often know, or can find out) he or she can often calculate the savings of the business or charter flight over the commercial flight alternative. Counting the time of the skilled professional(s) who are tied up waiting in airports, opportunity costs for a sale made or lost, cost of shipping parts or equipment separately, etc. Collecting these facts, getting numbers wherever possible, and being able to present them in a concise and convincing way is key to proving value to the company or to the client. Most pilots go through this exercise (at least mentally) but it never gets communicated effectively to company execs and other decision makers.Why This Doesn’t Happen
Pilots (dispatchers, and other professionals) know the tricks we’ve mentioned, and hundreds more. But often they don’t expend the time and effort to calculate and reduce costs and benefits for several reasons:- Most pilots got into flying for the adventure, not for the paperwork.
- Saving money is sometimes inconvenient. It’s easier to push the throttle all the way forward than to save that 15-25 knots that are the most expensive in terms of fuel burn.
- Justified or not, pilots often don’t feel that they “owe” the company loyalty that the company doesn’t return.
- Collecting and reporting value is hard work. The last thing an overworked pilot wants is an hour in front of a desk staring at spreadsheets.
- Collecting data doesn’t make any difference if no one is listening. (Upper management, clients, etc.)
Communicating Value
What should pilots and aviation professionals do with all this data?- Put it in a format that is easy to understand. It has to be “so easy a CEO can understand it” in 10 seconds or less. This usually means a visual or graph of some kind.
- Talk to (and give this information to) your chief pilot, dispatchers, other pilots, and managers.
- Companies can use it on their blogs, websites, social media, and other public relations channels. Pilots can publish key bits of data on their own Twitter, Facebook, or LinkedIn profiles.
- Submit great stories (and there are LOTS OF THEM) with data to your local media, as well as GAMA, NATA, NBAA, and other industry organizations for their newsletters and public relations campaigns, like No Plane No Gain.
Why It Should Happen
It’s a very powerful thing to be able to produce a spreadsheet or graph that shows the value of an activity. I have to confess that I initially steered toward marketing because I was avoiding math classes in my undergraduate work. Since that time, I’ve figured out that marketing consultants aren’t safe unless they can prove the value of every campaign. On paper. With a spreadsheet and a graph. It would have been great to see the presidents of the auto companies pull out a nice graph showing the value of their flight departments. Let’s show THAT on CNN! Most of the articles in Forbes Wheels Up series have contended that business aviation is an excellent value.| The typical corporate aviation operation has progressed well beyond the realm of flying carpets for the rich and famous (though of course there is a segment of the market that serves these), to becoming an integral tool for getting business done by connecting staff with customers, factories, mines, plants, and Wall Street, in addition to “going to Washington.” From How To Defend Aviation As A Business Tool? The Answer: We The People. June 27, 2010 Elizabeth A. Clark, MBA, CAM |
| Another advantage of present times is the reduced cost of getting into business aviation. The aircraft market has dramatically discounted prices; training prices and insurance prices are down. There are also many different ways to arrange a company's position in, or use of, aircraft, including tax incentives. Tough Times Are The Right Times For Business Aviation July 1, 2010 Jeffrey Reich |
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Aviation Marketing