The hidden value of aircraft partnerships

6 Sept 2013

Brian Hennessy, Blue Hawk Aviation, LLC

A chief concern of companies or individuals considering an aircraft partnership is the cost of scheduling conflicts between the partners.   Even if your advisor has done a good job of arranging a complimentary partnership, it is inevitable that conflicts will arise from time to time.  However, the cost of ferrying your airplane back to base due to a conflict should be viewed as a small one, relative to the savings the partnership enabled.

A complimentary partnership arrangement will help minimize scheduling conflicts, however they will happen occasionally.  Practically speaking, the expense associated with these flights should be billed to the partner(s) as variable or “occupied” expense only, rather than total hourly cost (fixed + variable).  For a newer, efficient super-light jet this variable expense will be in the neighborhood of $2000/flight hour.  Additionally, the owners should have a well thought out agreement as to who pays these costs.  Different models exist, but Blue Hawk recommends in most cases that an agreement be built that encourages scheduling well in advance.

Critically, partners must view the reposition expense not as a cost only, but rather net of how much they save annually on the acquisition of the aircraft by having a partner.  For example, $60,000 of reposition expense annually looks pretty small in comparison to $350,000 of aircraft payments avoided annually due to the fact that your partner is paying for half of the airplane.

When considering reposition expense associate with aircraft partnerships, your advisor can and should model these net expenses as accurately as possible and include them in the final analysis.

Blue Hawk Aviation provides expert aviation and aircraft advisory services and can match companies, individuals and families with the safest, most efficient private aviation solution.  Additionally, Blue Hawk advises on negotiations, partnerships, purchase arrangements, upgrades, delivery, management and operations issues.

Blue Hawk represents our client’s interests alone. We do not accept referral fees or other consideration from service providers or vendors. 

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The Blue Hawk Needs Analysis

Your firm or personal travel solutions should be reviewed regularly for efficiency, cost effectiveness and a positive impact on productivity.  The optimal aviation program will help to drive growth, shareholder value or fully meet personal requirements, while the wrong solution can be a costly, inefficient nightmare.

Blue Hawk Aviation provides expert aviation and aircraft advisory services and can match companies, individuals and families with the safest, most efficient private aviation solution.  We are equally adept at periodically evaluating existing corporate aviation solutions relative to current and projected requirements, as well as finding the optimal solution for companies and individuals new to private aviation.

Factors related to safety, cost, scheduling, operations, contracts, and FAA regulatory compliance vary greatly between service providers.  Blue Hawk has the experience to analytically determine you or your firm’s true requirements and objectively find the best private aircraft travel solution(s) to meet these requirements.  Additionally, Blue Hawk can advise on negotiations, partnerships, purchase arrangements, upgrades and delivery issues.

Blue Hawk represents our client’s interests alone. We do not receive or accept referral fees or other consideration from service providers or vendors.  Please do not hesitate to contact us for references and to discuss how our services can benefit your clients.

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Blue Hawk System Safety Training

Blue Hawk recently delivered its half-day system safety training program to 188 senior managers and leaders at East Jefferson General Hospital.
The program includes sessions on:

  • Introduction to aviation safety
  • Mishap/adverse event investigation and human factors analysis
  • Crew Resource Management
  • Operational Risk Management

The training concludes with an interactive break-out session focused on a relevant medical adverse event investigation, including root cause analysis and human factors classification.

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Blue Hawk Aviation Services

Blue Hawk recently completed an aircraft performance analysis for the Ochsner Clinic Foundation.  Our analysis focused on validating vendor proposal claims, to include an analysis of aircraft performance as well as helipad location and limitations.

Blue Hawk Aviation can:

  • Establish/validate aviation program financial and performance requirements
  • Validate vendor proposals and/or assess vendor performance
  • Determine most efficient aviation solution or combination of solutions
  • Manage aircraft or vendor selection, negotiation and acquisition processes
  • Develop personal or corporate aviation program
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Great Article on New Orleans’ “New” Business Climate

New Orleans is booming! The business climate has significantly changed for the better, start-ups are at a nation-leading level, regional unemployment is among the lowest in the nation, and that critical piece, access to start-up and growth capital has also finally started to change for the better.  The following article by Forbes summarizes very well just some of the positive changes and developments since Katrina:

http://www.forbes.com/sites/adrianalopez/2012/07/26/a-look-into-americas-fastest-growing-city/2/

The following quote from the article gives some idea of the fantastic progress that has been made by New Orleans and Louisiana as a business environment:

Besides recently topping the list of America’s fastest growing cities by the U.S. Census Bureau, New Orleans has earned high rankings across several other areas, further confirming the prominent opportunities available in the city. In fact, Forbes named the Greater New Orleans Area No.1 Metro for IT Job Growth and No. 2 Best Big City for Jobs in the United States.  Other accolades have included rankings as the No. 2 Employment Market in the Country, America’s Best City for School Reform, top city for entrepreneurs on two separate lists, and No.1 on the list of America’s Biggest Brain Magnets for drawing people under the age of twenty-five with college degrees.

The state’s progressing business climate has been the biggest factor in luring new industries and people, putting Louisiana on several accredited lists, as well.   The state is currently leading the nation as the No. 1 state for exports and No. 2 for imports, No. 3 in film production, and No. 1 state for economic development growth potential by Business Facilities 2012 State Ranking.

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