A just-released study shows that companies using business aviation outperform those without aircraft.
“This study shows what the people in the business aviation community have always known,” said National Business Aviation Association (NBAA) President and CEO Ed Bolen. “A business airplane is the sign of a well-managed company, because business aviation helps companies of all sizes be more efficient, productive and competitive.”
“It’s no surprise that America’s best-performing and most-admired companies rely on business aviation to provide concrete and unique competitive benefits that are reflected in shareholder and enterprise value,” added General Aviation Manufacturers Association (GAMA) President and CEO Pete Bunce.
The study, conducted by NEXA Advisors, concludes: “Business aircraft users had a dominant presence, on average of 92%, among the most innovative, most admired, best brands, and best places to work, as well as dominating the list of companies strongest in corporate governance and responsibility.” The report also finds that business aviation alone is the only asset capable of accelerating strategic transactions and therefore providing a competitive edge to top-performing companies.
The study’s authors examined how companies included in the Standard & Poor’s (S&P) 500 performed in revenue growth, profit growth and asset efficiency from 2003 through 2008, the most recent six-year period for which complete data was available. Business aircraft use was tied to key enterprise drivers outlined in the study; S&P 500 executives were also interviewed, and an independent cross-reference of findings was performed.
“In conducting this study, we found that companies using business aircraft outperform non-users across every key financial and non-financial measure of business success,” said the study’s lead author, Michael Dyment, managing director of NEXA Advisors.
Dyment pointed to a number of compelling findings included in the study. For example:
* Average annual revenue growth on a market cap-weighted basis was 116% higher for users of business aircraft than for non-users;
* Average annual earnings growth was 434% higher for users of business aircraft than for non-users;
* Total stock and dividend growth was 252% higher for users of business aircraft than for non-users;
* Total share price growth was 156% higher for users of business aircraft than for non-users, and;
* Market capitalization growth as measured by market value growth was 496% higher for business aircraft users than for non-users.
The study also points to a number of other noteworthy connections between well-run companies and those that use business aviation, including the following:
* Among Business Week magazine’s 2009 “50 Most Innovative Companies,” 95% of the S&P 500 companies were business aircraft users;
* Among the same magazine’s 2009 “25 Best Customer Service Companies,” 90% were business aircraft users;
* Among Fortune magazine’s 2009 “100 Best Places to Work,” 86% were business aircraft users;
* Among the same magazine’s “World’s Most Admired Companies,” for 2009, 95% were business aircraft users;
* Among Business Week/Interbrand’s 2008 “100 Best Brands,” 98% were business aircraft users, and;
* Among The CRO’s 2009 “100 Best Corporate Citizens,” 90% were business aircraft users.
For the NEXA Capital Partners Study, go to: GAMA.aero.
