Use of Private and Corporate Jets Is Reasonable but Easily Criticized; 72.9% of CEOs Used in 2008
Private and corporate jets for business travel is one of those topics that doesn't tend to get much visibility. But when it does come up -- such as during an economic environment when companies have received government bailout funds -- it seems as if the use of private jets is easily criticized.
The WSJ posted an article about executives at banks propped up by government have been allowed to keep the personal use of the company jet. An excerpt:
"Flight records show numerous occasions when banks receiving federal money have flown their planes to destinations near resorts or executives' vacation homes, including spots in Europe, Mexico, the Caribbean, south Florida and Aspen, Colo. In some cases, it's clear that bank executives were traveling for personal reasons; for other flights, many of which were over weekends or holidays, the passengers and purpose couldn't be established."
Some examples of increased private use of jets by CEOs, according to a recent ABC News report, included the following spend in 2008:
- GMAC CEO Alvaro G. de Molina: $2,259,595
- IBM President and CEO Samuel J. Palmisano: $493,881
- Tyson Foods President and CEO Richard L. Bond: $458,069
- American Express Chairman and CEO Kenneth I. Chenault: $414,702
- Deere & Co. President and CEO Robert W. Lane: $401,732
- Comcast Chairman, President and CEO Brian L. Roberts: $392,732
In fact, 72.9% of Fortune 100 CEOs received use of private jets in 2008, according to the ABC News report.
To be sure, there is appropriate use of private and corporate jets. One example reported by the WSJ was when 600 private jets were expected at the 2009 presidential inauguration, shutting down the runway at Washington Dulles to park 100 of the planes. And the examples tracked for business travel above may have also had equally strong justifications.
It's important for people to remember that -- assuming the decisions are legal -- it's absolutely reasonable and fair for any business or organization (including political ones) to make a decision about the appropriate use of their funds for operational needs.
Stepping away from the perception of excess for a moment, when the use of private and corporate jets is discussed and criticized, few people tend to consider the economic stimulus and employment associated with this industry: those who manufacture jets, air traffic control, local communities that benefit from having airports used for private jets, and the list can be just as long as other forms of air transportation.
Nevertheless, it seems that business travelers and executives may want to make careful decisions about the responsible and appropriate use of private jets for corporate, political or other uses.

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