Fears of recession still loom large in C-suite executives’ minds as corporations approach the end of the first quarter of 2023. A recent survey conducted by CFO.com, sponsored by Oracle NetSuite (News – Alert), revealed the top three challenges facing companies in 2023 are recession worries, workforce issues, and technology adoption. Nearly all of the respondents (99%) predicted that they would cut budgets in response to recession worries.
One area that may continue to see budget cuts is corporate travel. The cost of maintaining a private fleet of aircraft is rising, thanks to rising fuel prices and a labor shortage. As companies look to reduce their expenses, corporate aviation is an area that will likely continue to see cutbacks.
The private aviation industry expects the demand for charter and private corporate jets to continue to decline. Even though this demand is declining, C-suite executives still need to travel as part of their responsibilities, and most of them don’t want to give up the flexibility and freedom that comes with private air travel.
Fortunately, one organization responded to this decline by creating a new solution that allows companies to keep their access to private aircraft while reducing expenses, and getting the aircraft off the balance sheet. Enter the Four Corners Aviation ‘Freedom’ program.
Vincent Kavanagh, Executive Vice-President, Head of Sales for Four Corners Aviation, states, “Our ideal client is twofold. The majority of the time, the client is a corporate entity that already owns an aircraft, or fleet, and loves the idea of ‘Freedom’, and being able to remove the aircraft from their balance sheet. These clients also want the hassle of ownership and management to be taken away through our ‘Freedom Program’. Lastly, our clients see the significant advantage of receiving the capital back from their purchase/purchases, which allows them to re-invest in their own business.”
Programs like Four Corners Aviation’s Freedom Program offer organization an opportunity to cut expenses. Instead of spending money on maintaining an aircraft, executives can save money and reinvest the capital.
For corporate travelers who don’t own their own aircraft, Kavanaugh offers another solution, “The other type of client is the individual that loves the idea of ownership and the direct access to their own aircraft and crew; but not having to pay for the aircraft upfront.”
This flexible program offers some key advantages over private charters. Private charter companies don’t guarantee the same aircraft and crew, and they also vary in cost. The Four Corners Freedom program guarantees the same aircraft and crew every time, along with full transparency on the cost, so executives can budget accordingly.
“It is unique. No other provider offers a similar program whereby they purchase the aircraft outright and take over all management. We take away the cost of capital and the significant cost of depreciation that an owner/fractional owner will incur and cannot scale or forecast. The Freedom Program is a service agreement with guaranteed availability. This removes any exposure on the company’s balance sheet as it is a monthly cost over a 5yr period,” explains Kavanaugh.
Four Corners Aviation offers a unique solution that provides consistency and transparency in a time of economic concern.