- Hiring a private jet charter for executives sounds like an extravagance. In fact, transporting top executives by private jet charter can be more cost-effective than flying in first class.
- Air Charter Service (ACS) has the research on how much money companies can save by flying private. But if you believe the adage “time is money”, a new study shows that traveling by private jet charter can be more frugal than a commercial flight.
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- Also, by avoiding crowded terminals, public security lines, early boarding and traffic en route to commercial airports, flying by private jet charter can cut journey times by up to half.
- And with salaries in the tens of thousands of dollars an hour, saving even minutes of a CEO’s time means saving real money. Global private jet charter provider Air Charter Service (ACS) has real numbers to back this up.
- According to the study, carried by independent researchers for Air Charter Service (ACS), used case studies of top CEOs and the routes they fly to discover if companies could save by hiring a private jet.
- Travel times were calculated using the fastest commercial flights available, and the assumption that an average CEO works 40 hours per week, 52 weeks per year.
John Hammergren of McKesson Corporation
- John Hammergren is CEO of pharmaceutical giant McKesson Corporation, and with a salary of $131.2 million a year (or $63,077.00 AN HOUR), Hammergren is America’s highest paid CEO.
- From his base in San Francisco, he often travels to McKesson’s Canadian HQ in Quebec. So, including time spent waiting at the airport and a layover in Toronto, the total travel time for a commercial flight comes out to 10 hours 35 minutes and a cost including a first class seat and wasted time of a whacking $667,564.92.
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- On the other hand, if Hammergren were to charter a nine-seat Citation Sovereign, his flight would take just five hours and cost $36,333, which when you include his time works out at only $351,718.
- ACS calculates that Hammergren saves 5.5 hours and more than $352,000 by flying private.
Thomas Rutledge of Charter Communications
- Thomas Rutledge, CEO of telecommunications company Charter Communications, has an annual salary $98 million (or $47,115 an hour).
- Charter Communications’ head office is located in Stamford, Connecticut, but many of the company’s operations take place in St. Louis, Missouri.
- To get from St. Louis to Stamford on a commercial flight, Rutledge would need to take three domestic flights, stopping in Atlanta and Detroit before landing in Hartford, Connecticut – a total travel time of eight hours, including waiting time.
- Or, he could charter an eight-seat Learjet 75 direct to St. Louis from Hartford in 2 hours and 5 minutes at $18,338. So, by these calculations, Rutledge saves just under six hours and $258,072 by hiring a private jet charter for executives.
Ralph Lauren of Ralph Lauren Corporation
- As the CEO of his eponymous corporation, Ralph Lauren earns a mere $66.7 million a year (just $32,067 an hour). In addition to jetting around the world for international fashion events, Ralph frequently flies to the company’s European headquarters in Geneva.
- The commercial flight from New York to Geneva takes a total of 10 hours and 5 minutes, including wait time and a layover in Milan.
- Instead, a private flight in a 16-seat Gulfstream G-IV costs $78,440 and takes just under seven hours. ACS calculates that Lauren saves 58 minutes and $47,073 by flying private.
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Additional Benefits of Hiring a Private Jet
- In addition to saving time that would have otherwise been at the airport, an executive’s time can be used far more efficiently on-board a private jet than in business class.
- The privacy on-board allows executives to have productive meetings and confidential conversations without worrying that their neighbors might overhear. Certain private jets are outfitted with spacious worktables, Wi-Fi and even fully-equipped conference rooms, so they can bring the boardroom right along with them.