New Study Highlights Business Aviation Value During ‘The Great Recession’
Oct 31, 2012
NBAA-Commissioned Study Shows Companies That Use Airplanes
Perform Better Than Those That Don’t
A new study would seem to indicate that even during the
worst economic times since the Great Depression, companies that relied on
business aviation outperformed the field in important measures of shareholder
value and recovered from the recession more quickly than their peers across a
range of industries representing the U.S. economy.
The study, entitled, "Business Aviation: Maintaining
Shareholder Value Through Turbulent Times", is the fourth in the Business
Aviation Users study series to be completed by NEXA Advisors, LLC. The study
concludes that companies in the S&P 500 that use business aviation achieved
superior financial performance in a number of key measures and also displayed
superior ability to respond to the severe downturn.
“This answers the question as to why so many American
enterprises continue to depend upon business aviation, even in – and perhaps,
especially in – tough economic times,” said NBAA President and CEO Ed Bolen.
The study found that generally speaking, companies not using business aviation
during the recession lost profitability, employees, and even dropped off the
S&P 500 rankings at far higher rates than companies using business
aviation, revealing that use of an airplane for business has a positive impact
on enterprise resiliency following what NEXA termed “the Great Recession”
period of 2007-2011.
For example, the analysis found that jobs at a diverse range
of companies that use business aircraft, from consumer to energy, health care
and industrials, not only recovered, but also have grown beyond pre-recession
levels, while non-user companies have recovered at much slower rates.
Comparisons of employment matched the better performance of business aviation
users in financial measures of shareholder value, including revenues, earnings
and profit growth and market capitalization.
The three previous NEXA studies, which analyzed Standard
& Poor’s (S&P) 500 companies, S&P 600 small-cap companies, and
government use of business aircraft at the federal, state and local levels, all
concluded that business aviation contributes to private and public enterprises’
ability to deliver greater value to shareholders and taxpayers.
The four studies make a convincing case that use of a
business airplane is the sign of a well-managed enterprise. “These studies make
clear that business aviation delivers value, boosting efficiency, productivity
and flexibility, enabling organizations to excel in good times, and especially
in a turbulent economic environment,” Bolen said.
The earlier studies of large-cap and small-to-mid-size
companies took place before the full impact of the downturn hit the U.S.
economy, and found that the business aircraft users outperformed peer
organizations in key financial and non-financial measures, including “best of”
rankings. The metrics from this study, which compiles recession-era data, show
that using business aircraft as a productivity enhancer brings an “inoculation
effect” that held through the toughest period of the severe downturn.
The study was commissioned by NBAA in conjunction with the
No Plane No Gain advocacy campaign, which educates policymakers and opinion
leaders about the value of business aviation to citizens, companies, and
communities across the United States. The campaign is jointly sponsored by NBAA
and the General Aviation Manufacturers Association.
No Plane No Gain: Sampling of 2010 Coverage
Since the launch of the No Plane No Gain advocacy campaign, a concerted effort has been made to deliver the message about the importance of business aviation through national and local news outlets. This sampling of national and local television coverage in 2010, highlights the campaign's effectiveness in communicating the industry's importance.
NBAA's Bolen on Fox Business Network
Click here to see Ed Bolen, President and CEO of NBAA, in an interview on Fox Business Network
NBAA's Bolen on DC's Newschannel 8
In an interview with Newschannel 8, Bolen explains that "... business aviation is prudent, cost-effective, and oftentimes, the only way to get where you're going."