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Is The Ownership Of A Private Jet Justified?
by: rsbombard
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It is strongly felt by some corporate governance regulators and critics that private business jets are way too expensive and are indeed a drain on the share holder's value or are just a fancy non-productive addition to a company's assets.
While many skeptics argue that private jets are a drain on the shareholders money, corporate honchos and some chief executives feel that these private jets add to productivity in a certain way.
Where most of the executive's time is robbed by an unending traveling marathons and long grueling flight plans, they feel that these private jets, which are custom made for businesses, with connected fax machines, internet and video conferencing facilities on board are indeed no drain on any shareholder's money, but as a matter of fact, are indeed a great way to keep that same money from wasting away on unproductive travel time. Some of these jets also come with an on board meeting rooms, fully equipped and connected, just as it would have been on the ground, to make it all the more productive.
If the business jets can be viewed as mobile or air borne offices, it certainly is not a wasteful expenditure. However, since the costs of these jets could range from 1 million USD to 50 or 75 Million USD, it could take all kinds of justifications or denials from any set group of people.
However, it does hold an amount of fascination to be owned and flown about in for most business travelers. While a businessman takes about 7 days to cover traveling seven destinations using a commercial airline, it takes just 2 days to travel across 7 destinations flying in a private jet. Also, one needs to note the fact that private jets have access to more than 5000 airports while the commercial ones have access to a few hundreds of them. As famously spoken by Warren Buffet, one of the most well known investors, commented that he would like to be deep fixed in a jet plane, when he died.
Since most of the businessmen, executives and companies feel the pinch, a fractional ownership is often suggested, wherein only a part of the plane and the operational costs are invested into.
There are even concepts like Jet cards which allow one to purchase block of hours on private jets. While some certainly stand by saying that it could be a fancy thing to own, some feel that it is a very practical business tool.
About the Author
Jason Uvios writes about "Is The Ownership Of A Private Jet Justified?" to visit : private jets north america, private jet statistics and information and customized private jets.
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