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Riding High: For Some, Business Commute is Airborne

Frederick News-Post

Frederick, MD (November 20, 2011) Business aviation is a growing trend among small companies, according to the National Business Aviation Association. The popularity of corporate flying rises and falls with the economy NBAA spokesman Dan Hubbard said.

The General Aviation Manufacturers Association calculated 2,971 registered active general aviation aircraft in Maryland in 2009, about 300 more planes than registered in the previous two years Communications Director Katie Pribyl said.

Benefits of small-business aviation

Boni Caldeira regards flying himself to client meetings as a company demonstration.  Some potential customers who join Frederick-based Caldeira on business end up buying planes for their companies, he said.  Caldeira, a regional sales manager with Cirrus Design Corp., flies a company plane to neighboring states, when flying commercial would be inconvenient.  "For a short trip, it's really annoying to have to put up with ... layovers and fewer direct flights," he said. 

New Era Custom Design and Cabinet Works Inc. President John Gage uses his Beechcraft Baron twin-engine piston at least once a week for business travel.  This past week, Gage flew to Princeton, N.J., and Philadelphia for client meetings and site consultations. He can usually find an airport 10 to 15 minutes from his final destination, and often uses the airport's courtesy car service or rents a vehicle for the day.  "It's a huge time-saver," Gage said. "I like to be home at night."

Convenience is a draw for many small businesses.

"I'll fly to Ithaca, N.Y., to get some business done, then fly to Pittsburgh, and I'll be home for dinner," Caldeira said.  Commercial airlines offer limited service to upstate New York, he said. "There is no train that goes there. The bus takes forever. It's six hours to drive."  Instead of landing at larger airports like Dulles International or Baltimore/Washington International Thurgood Marshall, pilots can touch down in Frederick, he said.

"From a local economy standpoint, the more businesses that choose to travel privately, the better for the local area."  About 17,000 business aviation planes are operated by about 15,000 individuals or companies in the U.S, according to NBAA. That number has increased incrementally, Hubbard said, from about 15,000 planes in 2004.

Planes land businesses in recession

Some companies purchase fleets of wheeled vehicles for travel; others are drawn to advantages of flight.  A business might look at productivity when considering an aircraft purchase, Hubbard said.  "A company might say, 'Well, the plane was instrumental in helping us land this deal/client/customer. We were able to respond to a customer's inquiry immediately. Could we have done that with a car?'"

New Era's work is largely limited to the Washington area, but employees sometimes get to pile into Gage's six-seater for out-of-town installations. "It means a lot to clients to know that I can be there on short notice, to work out problems (or) check out field conditions," he said.  General aviation costs are usually computed by the hour, Pribyl said. Cost-per-mile varies greatly depending on the model of airplane.

According to Business & Commercial Aviation magazine, 2010 per-mile fuel costs for a 600-mile trip might equal about $2.37 for a single turbine engine Cessna Caravan, close to $2.70 for a twin-turboprop Beechcraft King Air and about $2.10 per mile for a light jet.  The future of business aviation is uncertain, according to NBAA, but Hubbard mentioned some factors that could drive growth.  As business moves faster and becomes more competitive, the marketplace looks to expand opportunities, he said, and small airplanes can make companies more nimble and competitive.

Also, during the recession, commercial airlines cut service to some areas, Hubbard said.  "A business airplane may not be only the prudent option, but may be the only option."

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