Travel$ense User's Guide (PDF, 139 MB) - NBAA

TRAVEL$ENSESUMMATION OF FINANCIAL BENEFITS161Several studies of corporate business aircraft operations have borne evidencethat the financial benefits of operation can be equal to, or larger than, the costof operating the appropriate number and type of business aircraft.INTANGIBLE BENEFITSThe intangible benefits discussed in this report are not easily quantified infinancial terms, but have been shown to have significant effect on businessobjectives. These benefits must be judged by the senior management of eachcompany as to the kind and scope of benefits the company derives from itsbusiness aircraft operation.The six categories of intangible benefits are:1. flexibility of routes and scheduling,2. customer relations enhancements,3. entrepreneurship contributions,4. key personnel attraction and retention,5. exploitation of opportunities,6. community service.Value of Employee TimeThere are various methods of measuring the value of human resources inbusiness. Companies can use these methods – or create their own – andcalculate the approximate values yielded by each method. Multipliers of annualsalaries then are computed from the resulting values and reviewed todetermine the most appropriate figures to compute the value of time savingsrealized by personnel using corporate aircraft.These finding have been based on research that has included:• interviews with professors of major business schools,• interviews with professionals of executive compensation search andconsulting firms,• interviews with professionals of major service firms in the fields ofaccounting, law and engineering,• interviews with professionals in the insurance industry regarding risks ofinsuring key personnel,• basic research of published papers and studies of how business executivesvalue time.Copyright © 1999, National Business Aviation Association, Inc.