|NBAA Press Release|
New Study Highlights Business Aviation Value During 'The Great Recession'
Oct 30, 2012
Contact: Dan Hubbard, (202) 783-9360, firstname.lastname@example.org
Washington, DC, October 30, 2012 - The National
Business Aviation Association (NBAA) today welcomed a new study showing that
even during the worst economic times since the Great Depression, companies that
relied on business aviation outperformed the field in important measures of
shareholder value and recovered from the recession more quickly than their
peers across a range of industries representing the U.S. economy.
The study, entitled, Business Aviation: Maintaining Shareholder Value Through
Turbulent Times, is the fourth in the Business Aviation Users study series to
be completed by NEXA Advisors, LLC. The study concludes that companies in the
S&P 500 that use business aviation achieved superior financial performance
in a number of key measures and also displayed superior ability to respond to
the severe downturn.
"This answers the question as to why so many American enterprises continue
to depend upon business aviation, even in - and perhaps, especially in - tough
economic times," said NBAA President and CEO Ed Bolen.
The study found that generally speaking, companies not using business aviation
during the recession lost profitability, employees, and even dropped off the
S&P 500 rankings at far higher rates than companies using business
aviation, revealing that use of an airplane for business has a positive impact
on enterprise resiliency following what NEXA termed "the Great
Recession" period of 2007-2011.
For example, the analysis found that jobs at a diverse range of companies that
use business aircraft, from consumer to energy, health care and industrials,
not only recovered, but also have grown beyond pre-recession levels, while
non-user companies have recovered at much slower rates. Comparisons
of employment matched the better performance of business aviation users in
financial measures of shareholder value, including revenues, earnings and
profit growth and market capitalization.
The three previous NEXA studies, which analyzed Standard & Poor's (S&P)
500 companies, S&P 600 small-cap companies, and government use of business
aircraft at the federal, state and local levels, all concluded that business
aviation contributes to private and public enterprises' ability to deliver greater
value to shareholders and taxpayers.
The four studies make a convincing case that use of a business airplane is the
sign of a well-managed enterprise. "These studies make
clear that business aviation delivers value, boosting efficiency, productivity
and flexibility, enabling organizations to excel in good times, and especially
in a turbulent economic environment," Bolen said.
The earlier studies of large-cap and small-to-mid-size companies took place
before the full impact of the downturn hit the U.S. economy, and found that the
business aircraft users outperformed peer organizations in key financial and
non-financial measures, including "best of" rankings. The metrics
from this study, which compiles recession-era data, show that using business aircraft
as a productivity enhancer brings an "inoculation
effect" that held through the toughest period of the severe downturn.
The study was commissioned by NBAA in conjunction with the No Plane No Gain
advocacy campaign, which educates policymakers and opinion leaders about the
value of business aviation to citizens, companies, and communities across the
United States. The campaign is jointly sponsored by NBAA and the General
Aviation Manufacturers Association. To learn more, visit www.noplanenogain.org.
Review a full copy of Business
Aviation: Maintaining Shareholder Value Through Turbulent Times.
# # #
Founded in 1947 and based in Washington, DC, the National Business Aviation
Association (NBAA) is the leading organization for companies that rely on
general aviation aircraft to help make their businesses more efficient,
productive and successful. The Association represents more than 8,000 companies
and provides more than 100 products and services to the business aviation
community, including the NBAA Annual Meeting & Convention, the world's
largest civil aviation trade show. Learn more about NBAA at www.nbaa.org. Members
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