In Defense of Corporate Jets
Several folks are pointing out the ridiculousness surrounding congressional witch hunts against corporate executives and their use of private jets. As one business ethics professor puts it, “it’s just silly to think that corporate jets are always a bad idea.”
Lost in the chatter is the hypocrisy surrounding these attacks. Members of congress and the President often use corporate jets, or the national equivalent in the case of the Boeing 747s designated for use as Air Force One. Speaker of the House Nancy Pelosi uses private jets to fly home to San Francisco from Washington D.C. And, here’s an article from the 2006 elections noting the donations of corporate jet use for politicians during the campaign season. This is but one example of many.
Wait time at the airport is less. Bob Lutz noted after the auto execs were attacked for flying corporate how it would look for them to show up late to a congressional meeting because their flight got bumped, had they flown commercial.
Security for executives is higher. Corporate espionage is still a problem, especially in the high tech and defense industries. Kidnappings of prominent individuals, particularly in places like Phoenix, are on the rise. Private jets provide an additional layer of security for prominent individuals such as top executives in the Fortune 100.
Corporate jets are cost effective. Business tickets are often needed at the last minute and cost full price. As Colin Campbell on MacLeans.ca noted, round trip coach tickets for two from Toronto to Atlanta run around $4,000. The same trip on a corporate jet runs $7,000. With airport delays factored in, with the hourly rate paid to top execs, the difference is quickly made up, and it soon becomes more cost effective to take a private plane than to fly commercial. Campbell noted that Wal-mart makes extensive use of corporate jets, while still being one of the most efficient and cost-conscious companies on earth.
Maybe there are some corporate excesses going on that taxpayers need to be concerned about. But the use of private jets ain’t one of them.
