Corporate jet trips and travel costs growing in the US
Corporate travel is a part of nearly all major businesses in the world, but some companies even take a step further with corporate jets to get CEOs, COOs and other business executives from point A to point B. According to the research by Equilar, total
corporate jet trips have increased significantly and in 2014, the number will grow for the third straight year.
"If your CEO is on vacation and you need him or her to come back quickly, you'd much rather have them be able to hop on a plane and fly back for a meeting as opposed for them waiting to catch the next commercial flight," Aaron Boyd, director of governance research for Equilar, explained, according to the Sun Herald.
Of the companies that report the data on corporate jet spending, the total amount increased by 61 percent in 2013, the source reported. Some businesses use their corporate jets for personal and recreational use. However, some companies are beginning to use their company jets for corporate travelers and other work-related flights.
With the increase of companies using their corporate jets for business travel, there are serious risks organizations have to understand before they send their workers packing. Different countries around the world see duty of care as a company's responsibility to keep a worker out of harm's way. It's the organization's liability to keep travelers safe as much as possible when businesses send workers to other countries for their job.
In the U.S., duty of care is considered an ethical obligation for businesses to keep workers as safe as possible when they are traveling domestically or internationally.
Corporate jet industry turning around
Back in 2010, nearly 100 Fortune companies decreased their corporate jet usage by 35 percent, dropping $92,421 annually from 2008. According to Equilar, the amount has grown to an average of $116,292 in 2012.
"They just basically went dormant during the downturn and now they're coming back on," said Larry Flynn, the CEO of Gulfstream Aerospace, a corporate jet manufacturer, according to Bloomberg. "It's a significant market opportunity."
As the corporate jet industry rebounds and more workers spending time on company jets, businesses have to understand the importance of protecting their corporate travelers.
Risk management software such as NC4 Risk Center and its ActivTravel capability enables companies to not only track commercial airline flights using the Passenger Name Record (PNR) but corporate jet information, as well. By manually entering the air craft's tail number, executives and other company travelers can enjoy the same risk visibility when traveling as commercial flights.
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