THE FAST LANE RETURN OF THE PRIVATE JET

THE CORPORATE JET SOARED AS AN ICON OF SUCCESS until the late ’80s recession, only to be hangared during the downsized ’90s. Perceived by many, particularly shareholders and employees, as an executive perk, the company plane became an image liability in a less than robust economy.

Despite a strong sensitivity to public reservations about the necessity of business aircraft, upper-tier Dallas executives are now returning to jet ownership as a viable business tool.

“Stockholders in most companies simply do not care to hear management’s justifications tor operating a company plane,” says the presidium of a large, publicly held casino corporation. “All they see is the expense, and they can’t get past the idea that the company plane is a perk for spoiled senior managers,”

Von Rodman, president of Jet East. Inc.. the largest aviation services organization at Love Field, understands the perceptions that executives fight. “What people tend to remember.” he says, “are the flagrant examples of misuse of corporate jets. Because of this, it is very rare to find a corporate logo on a jet today.”

Rodman remembers the ’80s as a decade of weekend jaunts and unnecessary trips to Las Vegas. “Now we do very little weekend flying, and I can’t remember the last time someone flew to Vegas,”

Despite the negative images of the past, private jet use is climbing. Jet East’s aircraft sales are up 50 percent and fuel sales are I up 15 percent from 1995, says Curt Horn of Addison Airport,

Business aircraft are increasingly seen as a good investment because the planes retain their value for many years. “Aircraft do not lose value like automobiles.” says Carl Neusal of Jet East. “In most cases, a company can purchase an aircraft, fly it for 10 years and sell it for close to the original selling price.”

A major factor driving the cost of pre-owned aircraft is a lag in product availability. New aircraft sales are booming after a decade-long recession, and production has not met demand.

For Stan Richards, owner and CEO of The Richards Group, the 35th-largest ad agency in the United States, operating a private jet boils down to a personal choice-a decision he didn’t have to make with a partner or a board of directors.

“I want to be home at night.”’ explains Richards. “Clearly it costs a lot of money to operate an airplane. But it is a huge convenience for me. It allows me to spend more time in the office, so 1 am more available to clients. I do everything in day trips…it’s rare that I spend a night away from my wife.”

Richards purchased a Learjet 60 for its ample creature comforts-standing head room, larger seats, an enclosed lavatory- as much as for its economic fuel performance. When he and his employees fly on behalf of a client, the client is billed either the direct operating costs of the trip or the commercial coach fare, whichever is lower. Richards personally subsidizes maintenance, crowing, insurance and other costs.

Richards is careful to explain to his employees what the aircraft means to the company. Operating the Lear does not cost them or the company a thing, especially in terms of raise and bonus consid-erations. Clients are told that they will save money by not paying for hotels and meals when he and his staff travel on their behalf. and often, they will pay less than commercial carrier fares.

Rodman reiterates: “When a company commits to buying a jet. you can be assured that the cost justifications are there.”