CEO's Get Criticized For Private Jets

Chief executive officer's have been criticized recently about their use of corporate private jets. These executive airplanes appear to the public as extravagant executive indulgences bought with money that could be applied to shareholders dividends. Still, corporate jets are expensive with fees that continue even beyond the initial multi-million dollar purchase. Even the major commercial carriers cannot turn a profit and corporately owned aircraft do not charge anything for their trips.

There is a humorous hypocrisy happening with Congress. Recently, congressmen has the CEO's of the auto industry before them and berated them for flying in private jets. Yet, these same congressmen often fly in corporate private aircraft while being lobbied. What the congressmen are doing are trying to capitalize on a public perception that private jets have no place in business.

Nevertheless, corporate jets do not have to be completely purchased and owned by a corporation. The benefits of private aviation can still be enjoyed. Fractional ownership programs allow companies to fly aboard a fleet of jets on a few hours notice. The company is only charged for the hours flown. Initially, the business buys part of a jet ownership in a single jet. Only the true advantage is that the fractional owners of that aircraft may fly the program's entire fleet of aircraft. The benefit to companies is that they do not have the huge upfront costs of a jet purchase and also do not have the regular fees and expenses. This is an easier expense to justify to the critics than outright ownership.