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Subject: Business Aviation - Capitalist Tool
(Posted on Mar 23, 2010 at 08:46PM) Tags: Business Aircraft, Business Aviation, Envoy Jet Ltd., Forbes Capitalist Tool, Jet Sales
In 1982, my father operated the first private Boeing727-100 in Canada. While I was going to college and learning how to fly, he hired me as a part time flight operations coordinator and flight attendant. On one trip to New York, we parked the jet next to Malcolm Forbes private 727-100. It had a white paint scheme with a green tail. In large capital letters, written across the vertical stabilizer were the words CAPITALIST TOOL.
Forbes was an advocate of business aircraft and obviously liked to promote it. Why? Forbes knew that the use of business aircraft positively affects the practice and outcome of business. In the fall of 2009, NEXA Advisors published a report titled Business Aviation: An Enterprise Value Perspective. This report analyzed business aircraft utilization of the Standard & Poor's 500 from 2003-2009. It found that within the S&P 500, business aircraft users outnumbered non-business aircraft users by a factor of three to one. Business Aircraft users outperformed non users in several important financial measures: * Average annual revenue growth on a market cap-weighted basis was 116 percent higher for corporate aircraft users. * Average annual earnings growth was 434 percent higher for users. * Total stock and dividend growth was 252 percent higher for users.Total share price growth was 156 percent higher for users. * Market capitalization growth as measured by market value growth was 496 percent higher for users. The report interviewed and quoted a number of prominent S&P 500 executives: "Berkshire has been better off in a plane available to go and do deals." - Warren Buffet· "You can't have a productive work day sitting in an airport and on a ramp. We typically see a time savings of 50 - 75% on certain trips using business aviation instead of scheduled commercial service." - S&P 500 Executive· "We paid for our aircraft for an entire year because we were able to respond so quickly to one customer." - S&P 500 CEO· "Business aviation greatly enhanced our ability to expand from a 17 to a 50 state market presence over the last 5 years." - S&P 500 Executive· "Clearly, business aviation increases the value that our company can deliver to shareholders by maximizing the productivity of our CEO. When he's more productive, he's creating shareholder value."- Energy Executive. Later that evening, I saw a Forbes magazine in the hotel shop and decided to purchase it based on what I saw was written on the side of his jet. His promotion of business aviation paid off that day. Blair
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