In the previous post, I discussed the reasons for having the flight department operate as a normal business unit. If the business unit is a profit center, producing something or delivering a service for which the corporation derives revenue, reporting metrics are clearly defined and universally accepted. What does the deliverable cost per unit to produce, and what is the revenue per unit. Such metrics demonstrate whether the business unit is actually returning a profit. Functions such as Legal, Human Resources, or IT (which are cost centers rather than revenue generators) have been around long enough that within each of those corporate functions there are clearly measurable goals; the cost to deliver the end-product can be measured and reported.
In this series, I have covered a myriad of ways to access Business Aviation. Whole aircraft ownership offers the most freedom, customization, personalized service, control and responsibility. Coordinating and utilizing business aircraft requires individuals skilled in management and aviation. This endeavor can be accomplished in-house with your own employees. Another option is the “turn-key” approach of contracting the function and oversight of the aviation operation to a management company.
Business Aviation is available in a variety of forms, each with unique features and advantages. This article looks beyond fractional shares in the sharing or co-owning of a business aircraft.