As more companies tighten their belts against the economic climate, the downturn shows no signs of stopping. Corporations have been turning to a number of cost-saving measures, but one that might be surprising is a return to the jet charter as a way of moving CEOs and other executives to important events.
Many companies seek ways to reduce their costs without laying off staff, and the measures being tried on Wall Street are sometimes as creative as they are bold. Companies have put more attention to user-generated buzz with viral videos, which cost far less than traditional advertising; and a host of consultants are under contract to streamline day to day operations. The move to charter private jets is just one part of this cost-saving effort, insiders say – but for some employees, it can be hard to see how the charters help keep the company in the black.
According to corporate watchdogs, the amount of spending that goes into chartering jets is more than offset by the amount that is saved on not owning and maintaining a private fleet. As many large companies offload their own private jets, chartering them on a need-to-use basis can be much more economical. It is becoming the popular way to step back from over-the-top executive displays without losing face by giving up the status of a private jet.
It remains to be seen how long companies will keep the trend going, but it shows no signs of letting up soon.
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