INTRODUCTION
In today’s economy, a business aircraft can contribute to improving company operating or financial performance and therefore, to increasing shareholder value. According to the Andersen study among Standard & Poors 500 companies
(S&P 500) in 2001, corporations with aviation departments and business aircraft earned 146% more in cumulative returns than non-operators between 1992 and
1999 in America. Surprisingly, in contrast to beliefs, the same study showed that during economic slow down between 1995 and 1999 32 S&P 500 companies generated even more return compare to non-aircraft operating companies.
As of 2001, more than 9500 companies in the U.S. operated in excess of
14.500 turbine powered fixed wing aircraft. Additionally, more than 3000 U.S. operators fly more than 7.200 turbine-powered helicopters. Tens of thousands of additional companies and individuals operate piston powered light airplanes and helicopters for business purposes. Among the S&P 500 companies, approximately three quarters own aircraft.
In the European market the situation is almost same. According to London
Business School study by Arimura and Takashi in 1994, companies with business aircraft performed 11.3% better than the industry average. Currently 615 companies in Europe have flight departments with 861 aircraft and 866 corporate air taxi companies operate 1190 aircraft and helicopters.
Recent economic trends such as increased productivity and effective use of time as well as company’s intangible assets like relationships, knowledge, people, brands, and systems are taking center stage in today’s global business world.
Successful companies are utilizing and developing both old and new economy assets. In this environment the value of business aircraft does not depend solely on their net benefits, but also on whether they enable a company to improve the efficiency or effectiveness of its intangible assets. Such assets include its people, their talent and specialist knowledge and even relationships. Companies winning in today’s economy are mobile, able to move goods, people, information, and capital around the globe quickly and efficiently.

THE VALUE AND BENEFITS OF OPERATING BUSINESS AIRCRAFT
According to J.D. Power and Associates Inc., even though business aircrafts may appear to be expensive, a deeper analysis reveals that they are often the least expensive way to travel when all costs and benefits are considered. Mostly junior executives have been known to suggest otherwise, but can all 11.000 CEOs in America and hundreds of others in Europe really be that wrong.
Very few executives fully understood how business aircraft can generate value for their organization. Common benefits such as mobility, accelerated transactions, and improved productivity mostly shadows other benefits of corporate aircraft use. In order to understand the real value of corporate aviation we have to break down the subject into three categories that are interconnected and the evaluation of one without the others can lead to misunderstanding the whole.
1.Category: Business Aircraft Utilization
 Employee transportation
 Customer transportation
 Supplier transportation
 Moving cargo, parts, mail
 Transportation for charity
 Direct applications
2.Category: Benefits Of Business Aircraft Utilization
 Employee productivity
 Strategic transaction acceleration
 Improved customer relation
 Supply chain improvement
 Product cycle improvement
 Security and safety of employees and property
 Improved personnel relation
 Direct travel expense savings

3.Category: Shareholder Values Due To Use Of Business Aircraft
 Market share growth
 Profit growth
 Asset efficiency
 Customer satisfaction
 Employee satisfaction
Let us detail every category a little more in order to clarify the utilization, benefits, and shareholder values and maybe exemplify some of the very cliché items.
UTILIZATION STARTEGIES
Transportation of employees and executives:
The most common use of business aircraft is for transportation of company employees. Corporations use their aircraft in this way in order to maximize the productivity and efficiency of human resources, to optimize the allocation of assets, and to improve company performance. The followings can be categorized under this utilization strategy;
1.
Key employee travel: this is the timely or discrete movement of a key person
(not necessarily a senior executive) to perform instrumental tasks or functions such as; to fly to client locations in order to restore “down” facilities or provide rapid response to customer needs; transport managers rapidly to required locations thereby improving efficiency, effectiveness, productivity and extend management control; for PR purposes transport executives or key personnel to attend inauguration of new facility; to use the aircraft for government relations and lobbying therefore send executives to meet with government officials or vise
2.
Corporate shuttle: the movement by air of groups of employees on a regular schedule between company facilities or remote sites.
3.
versa; to facilitate a deal business aircraft provides the best transportation when the key employees needed with minimal impact upon their schedule.
Assembling and deploying teams: from the operations, production and engineering point of view, to move employees between facilities to leverage personnel resources and decreasing process or production cycle times.
From the sales and marketing point of view, to move employees and customers between
4.
facilities to improve sales and marketing; to deploy teams for a multi-city, multi- customer “marketing blitz” over the course of several days; to deploy exhibition and trade fair crews and materials.
Emergency response for endangered or injured employees: The business aircraft can move employees out of harms way in emergencies.
Can be converted easily to an air ambulance for that matter.

5.
Personal travel: this can be used to motivate high value successful employees, or employee of the year, CEO of the year etc., where they can utilize the plane with his/her family as a reward of his/her accomplishments on his birthday or anniversary.
Transportation of customers:
1.
Bring customers to you: using the aircraft to bring customers and company personnel together contributes to improved sales, customer satisfaction and retention.
The purpose for the trip can include factory or facility tours, entertainment or sporting events, investor relations, public relations or government relations and lobbying.
2.
Creation of a sales en route environment: Using the aircraft itself to facilitate sales.
Potentially, a customer en route to any destination is a captive audience in a highly conductive sales environment.
3.
Carriage of elected or appointed officials: Utilizing the aircraft to transport elected or appointed officials.
It is a distinctive form of lobbying.
4.
Transportation of the press: Use of a company operated aircraft to carry reporters to a company event, or merely to sequester the media with executives or key employees in the aircraft.
5.
Transportation of interest groups: Providing courtesy travel service to an interest group or party, allowing the parties to become better acquainted with the company.
Transportation of suppliers
Building supplier relationships help integrate and expedite the companies supply chain, potentially improving efficiency and lowering costs. Bringing suppliers to you.
Transportation cargo, parts, and mail:
This includes all the internal movement of company cargo, parts, and mail between facilities, suppliers, customers, and potential customers. For example, moving courier inter-office mail, direct shipment of parts to remote locations, shipment of emergency supplies or parts to facilities or customers, rapid delivery of external cargo or mail, transferring valuable cargo such as money, gold or financial and investment papers.
Transportation for charity:
Although the business benefit from this practice is indirect, there can be substantial direct benefits to people and public. Most companies recognize the value of having a strong, positive and visible presence in their various communities. Aircraft can be a very powerful tool to advance community service

efforts such as; transport patients for medical treatment (children with cancer); transport organs for transplants; emergency evacuation and supply during natural disasters. (earthquake crews, medical crews, human aids, first aids etc.).
Direct applications:
If aircraft are operated under a new corporate identity but under the holding’s roof, certain commercial aviation certificates can be obtained and company aircrafts can be used to generate commercial revenue.
1.
Charter aircraft to third parties: This practice of outsourcing the company aircraft to external parties when the company does not need it, is gaining a wider acceptance and is an important way to increase utilization, reduce the fix costs and generate revenue.
2.
Advertisement tool: company aircrafts can also be used as giant size flying billboards.
Painting the fuselage and wings can turn the aircraft to a mobile billboard visible at every airport at every approach and at every occasion.
3.
Aerial Surveying: Surveying potential sites, power lines, pipelines, monitoring and photographing physical assets from the air can be counted under this application.
BENEFITS
Understanding the utilization strategies for business aircraft is relatively straightforward. Cataloging and quantifying the benefits that can accrue from those strategies is more challenging, particularly given that individual corporate cultures, strategies and circumstances are unique, and that business aircraft are used for many reasons other than simple transportation. However, the benefits of business aircraft use can be generalized mostly under six core subgroups.
Benefits that increase employee productivity:
1.Save employee time: The productivity improvement resulting from door to door travel time compression and diminished travel related fatigue results in increased post trip productivity. Employee time is a tangible cost, as salary and bonuses pay for it.
Using business aircraft improves employee productivity in several ways. For example flying business aircraft non stop on passenger directed schedules between close-in general aviation airports using small quick access passenger facilities rather than flying scheduled airlines and commonly making connections on airline schedules between commercially served airports with vast passenger terminals and annoying security measurements can provide very significant time reductions and efficiency. Example
Scenario; A company executive flies from Istanbul to London with THY or BA using
Ataturk and Heathrow airports. This executive spends 2 hours at the airport clearing certain check points regardless of the class he is flying, his luggage are thrown by ground handling people, he spends 4 hours in the airplane eating airline food, coping

with the attitude of cabin personnel, after landing lines up for passport checks, waits at least for half an hour if not an hour for the luggage, tries to find a baggage cart, walks long ways to the exit doors, finds his greeter by checking lots of people with banners or takes a taxi to the hotel. In all optimistic calculations this trip lasts at least 7-8 hours excluding inconvenient departure and arrival times of the airlines. The same executive flies on a company jet to London from Istanbul, using Sabiha Gokcen airport’s CIP lounge, parking his car in front of the private terminal, going through all the checks without waiting even a minute and enters the airplane immediately, his luggage is carried by company ground handling, and airplane is serviced with the food he requested according to his diet. He flies 4 hours to London City airport, Luton, Biggin Hill or Farnborough airport to a private general aviation terminal. On the way to London he holds meetings with his business crew, makes calls, works with his laptop, sends/receives fax watches a movie, takes his shoes off, smokes his cigarette or cigar, sleeps on the couch, shaves, dresses up, is informed about the flight by his flight crew, etc. After landing, the London based company, which his corporate aviation department has been in contact with, welcomes him and escorts him through passport checks. His luggage is already delivered to his courtesy car and he directly goes to his meeting in
London. This trip lasts maximum 5 hours. He gained already 2-3 hours, he is not tired,
Beech Jet 400A (6-8 place short to medium range corporate aircraft) and he doesn’t have to stay in London for a day to catch an afternoon flight. He flies back to Istanbul the same day. He sleeps in the aircraft in his pajamas or sweat pants, calls his wife and informs her about his arrival time. He lands back to the Sabiha Gokcen
Airport, leaves the CIP terminal in 5 minutes with his luggage already in his car in front

of the terminal. The scenario can be diversified as much as we want. Same executive can travel to London via Frankfurt and make a customer stop or conduct two meetings in one day. After this scenario we can translate employee time into a cost metric system by dividing the total salary, benefits, bonuses and any other direct compensation, benefits, long-term incentive by the number of hours worked annually. The resulting direct employee cost per hour, when applied to time saved through greater mobility, can be used to estimate the cost savings to an organization as a result of employee time saved. However this method is very simplistic and does not include the leverage value that the employee contributes through productivity, comfort and time saving coefficients. In addition, this employee is happier that he can spend more time with his family. In today’s fast business environment, the quality family time contributes more to the leverage value of employee’s contributions to his company. There are various models that a company can adopt to calculate employee contribution to revenues and company profitability.
To leverage key employees:
The ability to move senior decision makers and specialist employees around quickly and efficiently in order to maximize their efficiency throughout an organization. Business aircraft provide the opportunity to leverage highly skilled and experienced individuals whose uniqueness is best characterized by their lack of scalability through more traditional channels such as adding additional employees and subdividing responsibilities. The ability to scale these critically skilled individuals across geographically diverse or broad organization is enhanced by the clever utilization of business aircraft. Example scenarios; A company marketing team of 4 people is scheduled to fly to Bishkek, Kyrgyzstan in the former Soviet Union to attend a high volume sales meeting. Even though there is a scheduled airline service to Bishkek by Turkish Airlines and Kyrgyzs Itek Air, the frequency is not suitable most of the time. THY flies to and from Bishkek twice a week and Itek Air flies once a week. Under all circumstances the marketing team must spend at least 3-4 days in the city to meet with customers for only 3-4 hours one day. The only two 4-5 star hotels in the city are charging minimum $ 140-220 a day, only a handful of places accept company credit cards and to walk on the streets with cash in pocket requires hired armed security for an additional charge. In contrary, the business aircraft provides even same day roundtrip for the company team if not a single day stop. The company marketing team can even bring their own food themselves to a country where everything is limited. Another example scenario; A team of banking operations people are scheduled to audit several branches in the eastern and southeastern cities of Turkey including Kars, Agri, Van, Erzurum, etc. Since those cities do not have scheduled airline service between them the crew plans the trip with a starting point at the most suitable city and than travels by car or bus to other destinations. Due to road problems and weather conditions the audit team spends a considerable amount of time on the road and completes the trip at least in a week. The allowance, ground travel, hotel and meal costs in addition to the airline cost and the cost of lost productivity can be offset easily by the use of company aircraft .

Increase productivity enroute and access to highly efficient airports:
Alternate airports with their fixed base operators’ (FBO) terminals are typically closer to the final destination than scheduled airline airports. The distance from a FBO parking lot to aircraft is short, making the out-of-thecar/into-the-plane transition practically in a matter of moments. The office like environment aboard business aircraft commonly including business tools such as data lines, fax and communication equipment can enable employees to be more productive enroute when compared to scheduled commercial airlines. Privacy, the ability to sit together, club seating arrangements and other collaborative interior designs foster the notion that work enroute is the rule rather than the exception. A 1997 Louis Harris & Associates poll of business aircraft passengers in America indicates that company executives aboard business aircrafts were
%24 more productive than their own offices but %36 less productive than their office environments in a commercial airline jet. Non-disturbance in their own aircraft to select their own destination airports most of the time makes them better utilized assets.
Schedule Control, improved schedule reliability and predictability:
Company control over schedules, routing, airports, aircraft availability, aircraft maintenance, crew and crew training, passengers and their baggage, and other factors creates a more predictable schedule, in general far more reliable than commercial travel. Extraction of employee travel from the commercial environment eliminates delays and cancellations related to problems not directly relevant to the employees’ specific travel plans, i.e. weather delays in other areas of the country, air traffic control delays at major airports, delays and cancellations due to airline labor, aircraft management and technical problems, etc. Example scenarios; Group of company investment people is scheduled to meet an investment group in Doha, Qatar. The flight is a connected flight from Istanbul to Doha via Amman by Jordan Air. The team flies the first leg to Amman but due to the delay from Istanbul they miss their connection for that day and finally arrive the next day but their baggage don’t arrive with the same flight, in fact by the time they land at Doha their baggage lands at Abu Dhabi. The airline, according to the 1929 Warsaw Agreement and the other International Air Transport Association Conventions, is obligated to deliver all the baggage as soon as possible or in case of loss pay $ 400 per baggage. So the meeting starts one day late and ill fated. But if the team had flown with company

airplane they would have been made it on time with their baggage. A company executive must travel to Gaziantep for an important meeting. He flies with THY to
Ankara than waits for his connection to Gaziantep but due to extreme weather conditions at Gaziantep the flight gets grounded so he returns back to Istanbul. In contrary, the corporate aviation department of his company tracks the weather momentarily and informs him about the situation at Gaziantep and schedules him to fly to Adana arranges company car with chauffeur to drive him to Gaziantep and tracks the weather from that time on so in case it gets better the company jet flies to Gaziantep to take him back to Istanbul.
Facilitate critical meetings and respond rapidly:
Scheduling efficiency and increased mobility produced as a result of business aircraft availability, enables critical face-to-face meetings that might otherwise be difficult or problematic to arrange. The ability to facilitate meetings independent of commercial airlines schedules can be a critical advantage, particularly when transactions are being negotiated. This is most evident when meetings run longer than expected. In these instances, in the case of company owned and operated aircraft, the aircraft typically will wait for the passengers regardless of the length of their delay, alleviating the need to end the meeting on any predetermined schedule and eliminating the attendant pressure that may come from public travel schedules. Company operated aircraft offer the ability to set travel schedules according to business need, and to react immediately to dynamic business conditions, sometimes even changing direction enroute. While alternative modes of travel can require significant delays or inconvenient routes, business aircraft usually provide direct access to business opportunities whenever and whenever they arise.
Improve employee morale and motivation, signal management support, and engender employee pride:
Employees being required to travel in the public transportation system to remote or difficult to reach locations might find the first trip an adventure, the second a chore and the third a factor in quitting or finding excuses for not servicing the client. The opportunity to reach markets such as these quickly and efficiently can recharge workforce morale, and re-motivate the affected. Business

aircraft can also be used to recognize and reinforce the motivation of high performance employees, further improving their morale and encouraging achievement. Employees can see ownership of business aircraft as a commitment to efficiency and excellence. It can also be viewed as a visible sign of managing assets successfully. These positive impacts on employees can positively affect employee satisfaction and loyalty and can result in greater productivity and lower employee turnover.
Lessen travel-induced stress and reduce aversion to travel:
Business aircraft travel provides an environment much more conducive to productive and stress-free travel. The elimination of the stress and related fatigue associated with commercial air travel can enable the employees to focus on business without the distractions inherent in airline travel. Business aircraft efficiencies eliminate many of the psychological impediments to travel, such as long delays, congested airports, lost luggage, lack of privacy, and noise. The use of uncongested general aviation facilities bypasses the majority of these impediments, often reducing the resistance that some employees develop towards travel. Example; an executive or key employee who travels to Germany with
Lufthansa from Istanbul must mostly take the early morning flight around 6 a.m.
Normally this person should be at the airport two hours before his scheduled departure for check-in and passport matters that makes him arrive Ataturk airport at 4 a.m.
in the morning. If this employee resides at the Anatolian side of Istanbul, he has to leave his home around 3 a.m. in the morning in order to make the airport on time. In other words, he should not sleep at all the night before in order to get packed and save some time for his family.
Hawker 800 Jet (8-9 Place medium range)

Cessna Citation II Jet (6-8 place short to medium range aircraft)
Benefits that help to expand markets
The use of corporate aircraft can accelerate transaction rates and transaction value. Enhanced mobility enjoyed by companies that operate aircraft can increase their ability to respond immediately to the completion of major transactions. It can also improve access to markets, thereby increasing market size and share. The geographic reach of a company sales or distribution channels can be extended through easy access to efficient and flexible transportation.
The use of company aircraft improves customer access to sales opportunities and also improves customer relationships. As potential customers are more willing and able to travel to company facilities or sponsored events when transportation is provided and tailored to their schedules and needs, the use of business aircraft can be highly effective customer recruitment tool.
Business aircraft can secure more time with customers and provide greater customer input to new product development cycles, while at the same time expand selling opportunities. It can create a chance to respond to customer

needs and reinforce the customer-supplier relationship while signaling that the company values the customer. Companies can increase customer satisfaction in many ways, including responding faster to customer needs, spending more time with customers, expanding relationships with existing customers, having a more focused attention to customer needs, and demonstrating new products and services to customers.
Benefits that secure competitive advantage
Using business aircraft as a competitive weapon to out-maneuver the competition will get the company ahead of its competitors. Also, developing new products based on more customer input accelerates time to market. Enhanced responsiveness and increased mobility can yield a competitive advantage in a number of different business scenarios. Using the aircraft as a symbol of company power and influence can discourage the competition. Seen by the competition as an outward indication of the company’s success in the marketplace. An icon of intimidation.
Benefits that induce operational efficiency
Improve business process efficiencies:
A company’s business process can be significantly enhanced by business aircraft use. The benefits are evidenced in reduction of cycle times, supplier related process acceleration, supply chain improvements, rapid dispatch and shipping of priority cargo, parts and mail, etc. By reducing cycle times, companies maximize revenue and reduce costs. Improving time to market entails shortening each segment in the product life cycle, including design and development, production, and after market support. By carefully identifying components of the production cycle that could be improved by use of business aircraft, companies can maximize these benefits.
Extend management control and operations oversight:
Easy access to distant facilities can extend management control. Better oversight and control of critical processes and tasks through business aircraft use may become a key element of improved risk management. Especially for

companies with multiple facilities or big networks, the benefits of business aircraft use can be identified better.
Accelerate corporate knowledge integration and knowledge
sharing:
One ancillary benefit of business aircraft use is a natural increase in the interaction between employees, and between employees and their customers and suppliers. The quality and quantity of these interactions tends to improve with the amount of travel conducted aboard business aircraft or because of their availability. Corporations can maximize the efficiency of scarce human resources by better allocating their knowledge capital. Strategies include facilitating strategic opportunities, exploring new markets, extending management control, and improving relations with customers, investors and the public. Business aircraft allow an organization to move people around seamlessly at a moment’s notice. Because the aircraft can be used to pool resources in a single location for the purpose of problem solving, or complex transaction execution, a geographically diverse company achieves the ability to draw upon areas of expertise from around the organization.
Benefits that offset the company expenses
Reduce commercial airfare, travel and entertainment expense:
Company personnel can avoid many of the costs of commercial air travel when using business aircraft. Commercial airfares often can be minimized or avoided altogether. Also, costs associated with the commercial air travel such as lodging, meals, rental cars, entertainment, travel allowances, and other expenses due to the commercial transportation schedules and inefficiencies can be avoided completely. Most of the time, business aircraft and the aircraft operation cost less than commercial air travel if all the above costs of commercial air travel are taken into consideration. Since a lot of companies have operating policies that grant business class travel and 5 star hotel accommodations to its senior employees, to operate corporate aviation department with a few airplanes cost generally less than commercial airline travel due to its same day or next day round trips. Example; A CEO with three other executive has a meeting in Munich,
Germany. They travel from Istanbul to Munich with THY B737/400, a 130 seat commercial airplane with marginal business class where instead of large leather business class seats the airline uses two regular seats with an empty seat in between. Still it costs between $ 1200-2000 depending on the season. Since they have to stick to the airline

schedule they cannot return the same day after 3-4 hours meeting and a dinner. This trip at the end without calculating the loss of executives man hour, the opportunity to rehearse the meeting, and comfort can easily cost $ 8000-10000 to the company. In contrary a company Citation or Beech jet can easily match or stay under these figures with an on demand schedule flexibility, in-flight meeting, and relaxing opportunities.
Reduce shipping and mail expenses:
The cost of postage, shipping and overnight freight charges, and in some cases the very high costs associated with private couriers, can be avoided as a result of using business aircraft for the (often incidental) shipment of cargo, parts and mail. Example; a production line in central Anatolia stops due to a machine part failure in the middle of the night. The company can order the 500 kg. Spare part online but the delivery with expedited cargo from Germany takes another day meaning to stop the line for two consecutive days that will cost thousand of dollars. In this case, demand to the part exceeds the cost concerns of the delivery. The technical department orders the part and corporate aviation mechanic converts the airplane to cargo through removing the seats, and in a few hours the jet is on its way to pick up the delivery. The production line stops only for half day.
Bell 430 Helicopter (6-8 place)

Decrease employee replacement costs, reduce turnover and retain personnel:
By using business aircraft, companies can improve their personnel retention, thereby reducing the costs of turnover and retraining. The availability of business aircraft and their potential impact on the quality of employees’ work and personal lives can be very significant. In some industries or positions business travel can be a significant requirement of the job. Therefore, the ability to reduce nights away from home can improve the employees loyalty to the company to a great extent. This can provide the company an edge in recruiting the talent.
Reduce staffing levels:
Redundant personnel can be eliminated if individuals or teams are sufficiently mobile to perform their roles wherever and whenever needed.
Business aircraft enable many employees to carry a larger workload covering a broader geographic area. Example: An Istanbul based company is required to have at least 4-6 regional managers and distant offices in order to cover all potential markets in Turkey. With a company aircraft some of these regions can be consolidated easily allowing the company to save hundreds of thousands of dollars in salary, benefits, and overhead expenses. In addition to this, the response to customer needs can be better.
Offset costs through charter revenue:
A company can gain revenue by chartering company-owned aircraft to third parties or executives for the purpose of reducing overall cost of ownership.
To reduce the cost of aircraft ownership, business aircraft operators with low periodic or weekend aircraft utilization often charters their aircraft to external organizations. External charters can be an excellent way for companies to maintain highly efficient aircraft utilization rates and earn money in the process.
In order to operate business aircraft for both internal and revenue generating external use a commercial certification must also be obtained. With a professional market research a company airplane can be rented to external

parties extensively providing to reduce the overall fixed cost dramatically because the more a business aircraft flies the less it costs per hour to operate.
Reduce tax liability:
The purchase and use of business aircraft, like any piece of capital equipment, may generate certain tax advantages, which will vary by country and the method of financing.
The benefits that improve risk management
Improve industrial security:
The loss of industrial secrets can have very damaging consequences for an organization and is a major category of risk that companies actively manage on a day-to-day basis. Absolute control over aircraft, crews and maintenance, can significantly reduce the risk of hijacking, cargo tampering etc.
Reduce and eliminate uncontrolled public exposure:
Uncontrolled public exposure during commercial business travel can subject employees to unwanted contact with public, competitors, and media. In some cases, the timing and location of this exposure can reveal corporate strategy. In particular, high profile, easily recognizable CEOs and shareholders can have a difficult time maintaining the necessary privacy and anonymity when traveling for highly confidential company business. In certain cases meetings for transactions and meetings with critical public figures can be done in the airplane during business trips.
Secure control over personal safety of passengers:
Business aircraft operations allow management more control over the personal risks associated with door-to-door business travel of employees and customers related to schedules, routing for weather avoidance, airports, aircraft, aircraft maintenance, crew and crew training, passenger and their baggage, and other factors.

Protect intellectual property and courier documents, packages:
Privacy inherent in the secure environment of business aircraft travel allow employees to work on and discuss projects of utmost company secrecy. Often commercial travel impedes such work due to the possibility that competitors might overhear or see something of vital strategic importance to the organization. Situations requiring delivery of original materials involving an imminent deadline, with potentially large financial losses associated with a failure to deliver the materials, would easily justify use of the company’s business aircraft.
Challenger 300 Jet (8-10 place medium to long range)
SHAREHOLDER VALUES OUT OF BUSINESS AIRCRAFT
It is impossible to draw a simple correlation between business aircraft use and shareholder value gains or up going company stock prices. Stock prices and commercial gains are affected by variety of factors, many of which are external and beyond the control of individual companies. However, it is possible to identify how using business aircraft can stimulate the value gain of the shareholders. The five drivers of shareholder value are:
1.
Revenue or market share growth
2.
Profit margin growth

3.
Asset efficiency
4.
Employee satisfaction
5.
Customer satisfaction
The shareholder value analysis is a complex analysis and requires operating the business aircraft for more than a year in order to translate the benefits and profits into quantifiable variables so corporate aviation management can establish a ratio between quantifiable costs and profit margin growth and present it to the shareholders.
CONCLUSION
Now you know about the advantages of flying business aircraft- the timesavings, flexibility, privacy, security, and the excellent safety record.
Before deciding to establish a corporate aviation department or a new company that will act as the aviation department and will serve internal as well as external customers, you should do an extensive analysis of your company’s travel requirements and learn how a business aircraft can improve the productivity of your management. For this purpose you may even charter business aircraft and see their service capability. After completing this analysis you can finally set up your own corporate aviation operation.
Where and how to begin?
There are a host of questions to answer such as:
 What kind of aircraft or aircrafts do I need?
 Should I buy it or lease it?
 Should I go with new or used aircraft?
 Should the aircraft be made available for charter to external customers in order to generate revenue to defray the costs of ownership?
 At which airport should I base the aircraft?
 Should I built a new hangar or rent a space in an existing facility?
 Where do I find qualified pilots and mechanics?

 Should I consider running an FBO business along side the flying operation?
 How much will all these operations cost
However, before all these questions you should find a corporate aviation manager, who is qualified and experienced enough to lead your department or new company.
Unlike in America, Europe and other developed countries, in Turkey, corporate aviation started in early 1990s with a high speed but slowed down very shortly after that initial blitz due to the mismanagement by the so called corporate aviation managers. Most of these companies bought or leased aircrafts without analyzing their travel needs. Instead of using them as powerful business tools company owners used them as their personal transportation that naturally decreased the utilization and increased the cost of operation and defeated the purpose. In contrast, the survey of 346 American business aircraft passengers conducted by Louis Harris and Associates Inc. in the late 1990s indicates just the opposite. According to this survey, top executives accounted for only 14% of the passengers, senior managers another 14%, 49% middle managers and the rest for technical, professional people and customers.
Poor judgments and decisions in corporate aviation in Turkey have not been limited with the way the aircraft were used. Aircraft selection has been a drama since the start. You could always see a medium size company with a business network of 500-1000 miles operating a heavy jet with a range of 4000 miles and a price tag of 25-30 million dollars. At the end, wrong decisions led companies to sell their aircrafts or break lease agreements.
Despite its bad reputation in Turkey, corporate aircraft takes the center stage at almost every successful company in the world. With the right manager and crew, right definition of needs, and right aircraft selection that will suit those needs corporate aviation can be the star again in Turkey. With around 50 airports where only half of it barely commercially served by national airline and steady expansion beyond borders, Turkish companies should discover this asset

like their siblings overseas. Who knows, maybe a business aircraft operation can lead your company to new horizons. Keep in mind, one of the most successful
FBO chains of the world with 29 operation centers worldwide, Million Air, established 15 years ago as Mary Kay Cosmetics’ corporate aviation department.
Today that company is much bigger than Mary Kay itself.
Citation Jet Modern Cockpit