Imagine how it would feel to announce year-end results that consistently show that your company has outperformed its competitors on ROA, ROE, EBITDA and revenue growth. Or have you company recognized as one of the country’s most innovative, admired and best places to work.
Picture yourself able to fix a customer’s problem face-to-face, engage a new client, meet with regional staff and be back home to sleep in your own bed that night – even if you have to travel hundreds of kilometres and make multiple stops.
Or, take advantage of the low business costs, loyal work force and great quality of life you find in a small community, while reaching all of your markets – domestic and international – with a single flight and no delays.
What is your time worth? What would it mean to you to have extra hours in your day, using secure and private flights to continue with business as usual with no interruptions and no eavesdropping?
All of this is possible when you take one single decision – to use business aviation. And if you make that choice, you will be in good company: a recent report produced by NEXA Advisors for the CBAA demonstrates that Canadian TSX 60 companies which use business aviation – about 70% of all TSX-indexed businesses – outperform those who only fly commercial scheduled airlines.
The numbers are staggering. Canadian business aviation users on average, outperformed non-users by 43% on top-line revenue growth. The NEXA study also found that business aviation users could expect to improve EBITDA at a rate of 50% higher than non-users. This is especially significant as EBITDA growth is one of the most important metrics showing the strength and resilience of a well-managed company.
The report also used metrics such as Return on Equity and Return on Assets to measure the performance of users vs non-users. The study showed that business aviation users are almost three times more efficient as non-users at using equity capital to generate income and increasing productivity of assets.
Broad TSX 60 User vs Non-User Indices 2012 to 2016
“This is the first time this study examined Canadian companies” said Rudy Toeing, the president and CEO of the CBAA “We were very pleased to find that Canadian companies that are using business aviation experience the same positive financial outcomes as companies in the U.S.”
The connection between business aviation and performance is very clear. A good example is TELUS, a born-in-Alberta success and Canada’s fastest-growing national communications company. Its use of business aviation is one reason why TELUS is renowned for its superlative customer service. The company uses its aircraft (including float planes) to enable its technicians to reach locations that are otherwise inaccessible. Rather than leaving customers without service for days at a time while technicians travel by commercial air or ground, TELUS technicians can reach remote locations and handle service issues the same day they arise, providing a better customer experience and ensuring access to telecommunications throughout the country. Logging 60 flight hours per month on average, TELUS’ float planes are not only used during emergency situations, but also for routine maintenance, bringing technicians to remote areas efficiently and safely.
Not every company can own and operate its own business aircraft, but every company can still take advantage of the power of business aviation by working with a leading organization like Aurora Jet Partners, a fractional aircraft operator and a jet management and charter firm headquartered in Edmonton, with bases in Vancouver and Toronto. Aurora fulfills an important transportation niche by offering a range of customized private travel solutions to meet the specific travel needs of their clients, and giving those companies many of the same benefits – and positive financial returns – as companies with their own flight departments.
The study also indicates that companies which use business aviation are wonderful places to work and are some of the most successful, innovative and exciting companies, according to 10 separate corporate ranking lists. For example, business aviation is used by 100% of companies ranked “the Most Trustworthy”, 95% of companies that will “Change the World”, 98% of “The World’s Most Admired”, 95% of “50 Top Performing Global Companies” and 92% of the “World’s 100 Best Corporate Citizens”.
While business aviation’s role corporate success is undeniably impressive, that is not its only contribution. The 400-business aircraft that are based in Alberta contribute $670 million to the local economy and employ thousands of people in well-paid, interesting and in-demand positions, from pilots to flight managers and dispatchers to maintenance engineers.
With the employment market in a constant state of change, a career in business aviation is an excellent opportunity that many have yet to consider. Offering long-term and well-paying careers, the average business aviation salary of just over $80 thousand is over 60% higher than the Canadian average. Moreover, business aviation is a very generous employer, based on a recent compensation survey undertaken by the Wynford Group, which found that organizations reporting from the corporate aviation sector pay their employees the highest salaries on average.
Alberta companies have always relied on business aviation – with good results. According to the Alberta government, the economic picture is brightening, stating: “Alberta’s economic growth exceeded expectations in the first half of 2017. Nearly every sector of the Alberta economy is rebounding, spurring recovery in exports and manufacturing and adding 17,000 jobs since January.”
With real GDP expected to grow by 3.1% in 2017, business aviation has – and will continue – to play an important role in support of Alberta’s corporations, communities and people.
HOPE AIR: AVIATION’S SPIRIT OF CHARITY LIVES ON YEAR LONG
In the spirit of the holiday season, the Canadian Business Aviation Association would like to thank our pilots and operators who donate personal hours and seats to support the extraordinary work of Hope Air, which, since its inception in 1986 has arranged over 100,000 free non-emergency medical flights for low-income Canadians who must travel far from home to access healthcare.
The business aviation community supports the work of Hope Air through the use of corporate aircraft, direct support to the scheduled service providers and through charity events like the CBAA Annual Golf Tournament for Hope Air.
According to Hope Air’s web site, about 28 per cent of Hope Air Clients say that they wouldn’t go to their appointment if Hope Air hadn’t been able to help them. The charity estimates that for every single person it helps, it positively impacts 45 other people in their community.