XO jet CEO on CNBC

[NETFLIER]

quoted:

"In September it was like somebody flipping a switch to off and flying has been near zero."

He did say, and I am sure we agree, that CEO's of big corps flying on the Airlines is nuts and fractional or charter is the way they should go.

 

[fob727]

Any link to the interview?

 

[Secret Squirrel]

quoted:

"In September it was like somebody flipping a switch to off and flying has been near zero."

He did say, and I am sure we agree, that CEO's of big corps flying on the Airlines is nuts and fractional or charter is the way they should go.

Why is that nuts? Are they better then us? If they can't make a profit and are running the company into the ground why do they deserve the perk of a business jet?

 

[JungleJett]

Why is that nuts? Are they better then us? If they can't make a profit and are running the company into the ground why do they deserve the perk of a business jet?

Business jets are business tools. Why do they deserve using computers when a pen and paper will work just fine? Why use a robot to build a car when people did it for years? Why use cell phones when landlines took care of us for a long time? Why use cars when horses are cheaper?

 

[JungleJett]

..by the way. Abuse of that business tool is not something I would accept.

 

[CA1900]

What you're seeing as a "perk" is, in many cases, a valuable business tool, as others have said. It enables these CEOs to conduct business that is not possible on the airlines.

Hypothetically, let's say a company needs to send half a dozen executives from, say, Kalamazoo to an office southeast of PIT to make a presentation during business hours, and then get back to the office to finish the paperwork.

I put the city pair into Travelocity for tomorrow: the earliest they could get to PIT would be 1205pm, and would require them to depart at 6:10am, arriving at the airport around 5am. By the time they get into town (let's be very generous and say it takes 25 minutes from block-in), you're talking 12:30pm at the earliest. An hour for the presentation, another hour to check in at PIT, and they can't leave 'til at least 3:30pm.

Assume they get done early, and they can make the 305pm flight home, that means they land at 8:55pm back in Kalamazoo. The entire day is burned for the company's senior management, not even counting the time the day prior to prepare the presentation (because they had to leave so early), and the morning after to finish the paperwork, because the day is gone. 16 hours of productivity lost, simply to make a quick presentation in Pittsburgh.

Cost: $6431.34 round-trip for six coach tickets.
Time: 16 hours


Now let's look at the same trip, but using a corporate jet. Same 12:30pm presentation at the factory in West Mifflin -- that's only a few minutes away from Allegheny County airport, so that's where we land at 12:15. The group had two hours to work on their presentation in the office before leaving for the airport -- pulled up to their plane in AZO at 11AM, got on board immediately, and we launched a few minutes later. They were able to continue working during the flight, so it wasn't wasted time. They finished at 1:30, got on board, and were back in their office in Kalamazoo by 3pm.

Time: 4 hours

As for cost? To make the math simple, I'll use a Beechjet through NetJets and MarquisJet, which is actually our most expensive product. It's about 300NM each way, so we'll say a 2-hour round-trip. At $5316 an hour, that's $10,632.

The question a company has to ask itself is, is taking the entire senior management and sales staff from the company worth the $4200 savings? Is the 12 wasted hours of their time worth more than that? The answer obviously depends on the specific company, but I'd venture that for a large corporation, taking those key people out of the operation would be false economy.

And to do the same trip with two stops -- as I've seen many of our clients do -- would be impossible to do on the airlines, at any price.

 

[fly4funcrj]

Nicely done but I have a question for ya.. How bored were you to look up that info

 

[kingairyahoo]

Nicely done but I have a question for ya.. How bored were you to look up that info

lol...touche :beer:

 

[gret]

Here's the link to the interview-

http://www.cnbc.com/id/15840232?video=997912058&play=1

 

[MasterOfYaw]

Why is that nuts? Are they better then us? If they can't make a profit and are running the company into the ground why do they deserve the perk of a business jet?

Why, my trip yesterday. Leave my London hotel 0700 (0200 EST). Fog as usual

Version A - Corporate Aircraft
Arrive EGGW 0800, plane waiting. Maybe a slight slot delay due to fog. Depart 0845. Arrive Home airport in Florida 1400 EST.

Version B (my reality) - Arrive EGLL 0830. Flight late arriving and departing. Delta assures me they will book me on next flight if I miss connection. Depart EGLL 1300. Arrive ATL 1815 EST. Miss connection by 5 minutes. Plane still at gate, but I can't get on. Ooops forgot to rebook you on next flight, it's full now. Here's your itinerary for tomorrow. Arrive at home airport in Florida 1030 EST ...... the next day.

All government bailouts should require senior execs to fly corporate for business in the interest of the company surviving and taxpayers getting some of their money back.

MofY

 

[brokeflyer]

Is this the same guy that's been bashing NJ?

then he fires a buncha pilots.....nice.

 

[AeroBoy]

Link to CNBC video

 

[CALRepublic]

Why is that nuts? Are they better then us? If they can't make a profit and are running the company into the ground why do they deserve the perk of a business jet?

If you invest millions of dollars at company-XX, would you want your CEO in a private jet doing/talking business or stuck at ORD over-night because he missed his connecting flight, oh and by the way, he'll probably miss the early morning meeting the following day??

if I invest $$$, I'd want him to be present at every single meeting, or be in that office when he has to, not at ORD or LGA waiting for a delayed flight, drinking starbucks...

 

[Secret Squirrel]

If you invest millions of dollars at company-XX, would you want your CEO in a private jet doing/talking business or stuck at ORD over-night because he missed his connecting flight, oh and by the way, he'll probably miss the early morning meeting the following day??

if I invest $$$, I'd want him to be present at every single meeting, or be in that office when he has to, not at ORD or LGA waiting for a delayed flight, drinking starbucks...

What kind of micromanaging CEO does your company have? Every meeting? It is the CEO's job to sit in his ivory palace figuring out how to screw the little guy so he can get his performance bonus. The only flying I see the CEO's doing for business is going to Washington looking for their bailout money. Then they take their jet to the bahamas where they have their multimillion dollar house which is exempt from US bankruptcy laws.

 

[imacdog]

I am sorry you are such an angry person, Squirrel.

 

[Fozzy]

I am sorry you are such an angry person, Squirrel.

No not angry, he just does not have a retirement.

 

[Secret Squirrel]

I am a very happy guy with a pretty good nest egg going, thanks for your concern.

 

[CALRepublic]

What kind of micromanaging CEO does your company have? Every meeting? It is the CEO's job to sit in his ivory palace figuring out how to screw the little guy so he can get his performance bonus. The only flying I see the CEO's doing for business is going to Washington looking for their bailout money. Then they take their jet to the bahamas where they have their multimillion dollar house which is exempt from US bankruptcy laws.

I disagree with you, a private jet is a business tool, which when not in use for business, can be used for a fisihing trip to the Bahamas....

I'm not going to sit here and argue with, you think whatever you want, its all the same to me. I'm not going to argue with someone I don't know over something I can't control. Life is too short for that.

 

[Secret Squirrel]

Wow, they let all the employees take the plane to the Bahamas? What a forward thinking company. Do they do a rotation type thing? Or do they start in the mail room, then move to the cleaning staff, etc?

 

[cherry20's]

I think its funny that all the planes in the first half are all QS's... I do agree that it is a necessary tool for CEO's. You guys have flown them, there working the whole time! Siegel did another interview on Fox news right before Christmas too. I'll see if I can find that one.

 

[F/O]

Another failed ex-airline CEO who can't manage his way out of a paper bag. Brace yourselves for more furloughs....

 

[hawkerflyer]

The only flying I see the CEO's doing for business is going to Washington looking for their bailout money.

That statement is simply ignorant. There are countless examples of corporate flight departments, large and small, that use their aircraft strictly for business, my employer included. In 2000 hours of flying over 4 and a half years, the number of non-business related trips can be counted on the fingers of one hand. Increased IRS scrutiny is nothing new and our chairman reimbursed the company for all of that flying. The example of the FNT to PIT trip is a perfect example and justification of using corporate aviation.

 

[gret]

That statement is simply ignorant. There are countless examples of corporate flight departments, large and small, that use their aircraft strictly for business, my employer included. In 2000 hours of flying over 4 and a half years, the number of non-business related trips can be counted on the fingers of one hand. Increased IRS scrutiny is nothing new and our chairman reimbursed the company for all of that flying. The example of the FNT to PIT trip is a perfect example and justification of using corporate aviation.

Are you flying Part 91 or Part 135? If Part 91, how can the Chairman pay for the flights legally under the FARs? Time sharing agreement?

 

[hawkerflyer]

Are you flying Part 91 or Part 135? If Part 91, how can the Chairman pay for the flights legally under the FARs? Time sharing agreement?

Part 91. The chairman is the only shareholder of the holding company that owns the aircraft. He reimburses expenses in order to satisfy IRS oversight and tax obligations.

 

[gret]

Be careful. I've been told you can't do these type of payments under Part 91.

 

[DAS at 10/250]

I think its funny that all the planes in the first half are all QS's...

That footage is from a History Channel documentary that primarily featured EJA and RTS. It was probably the first google hit and they ran with it.