Plane gain: does a corporate jet pay off?: a model for simple evalutaion of rentability of a business jet in an individual corporate setup using recent average industry values

Despite the vast modern means of communication and the multiple ways real-time exchanges of various kinds of data and information can be shared remotely, there is still a strong demand for direct, personal contact and negotiation, as well as a continuing need for an on-site workforce. From executive leaders of global corporations to those of local small-to-medium-sized enterprises (SMEs), or from highly skilled personnel urgently needed at a remote production site, to the unique needs of artists from the cultural and entertainment business, whenever a client’s schedule is tight and saving time is of utmost importance to ensure the best possible productivity, business aviation offers an efficient means to optimize the necessary travel time. Direct air transport is becoming increasingly critical, due to the prospect of flexible and convenient travel, even on short notice, and to nearly any destination worldwide, be it remote or highly trafficked, especially when time is of the essence. While the number of business jets used for these purposes has been steadily increasing over the last several decades, there are hardly any available summaries that analyze the many aspects involved. The literature does describe business models in some aviation handbooks, branch magazines cover the latest aircraft and industry developments, and many smaller enterprises provide information on the internet, but precise and traceable data on the cost factors involved in relation to a specific price per flight hour are scarce. This thesis aims to review and sum up the existing information, compiled from many different sources, in order to provide an overview of the industry, and specifically the costs associated with owning and operating a business jet. Based on this, a model will be presented that is able to define the specific needs of this industry that could serve as an extremely useful tool to quickly assess costs per flight hour for various aircraft classes in an individual setup to assist corporations considering the purchase and operation of their own corporate jet in their decision-making. In this thesis, the author will ultimately provide a reproducible model to evaluate the respective needs and costs necessary for business travel by corporate jet versus those for external flight services.