Corporate Aviation

The beginning of the of the decade of the nineties finds corporate aviation at a crossroads. Following a decline in organizational role in the 1980s, there are some signs of renewed life. This research examines the prospects for corporate aviation in the 1990s.

A combination of factors, but primarily increased competition and declining fuel costs, produced sharply lower consumer air transportation costs in the 1980s. One result of these lower air transportation costs was a decline in the use of companyowned aircraft by corporations. In the changing air transportation environment, corporations found it economically advantageous to rely more heavily on commercial air transportation.

At the beginning of the 1990s, several factors affecting air transport are once again showing signs of change. Fuel costs are dynamic, and some analysts predict significant longterm increases in the coming decade. Commercial airline service deteriorations are, in some instances, being transformed

from just an irritating inconvenience for the business traveler to a source of increasing cost and lost productivity for the business traveler's organization. Airline companies claim that the service situation is improving. Some independent analysts, however, are less certain about the future of airline service levels.

This research examines the factors which will likely have the greatest effect on the use of companyowned aircraft by corporation in the 1

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. ," 1986). The General Accounting Office (GAO) said that the reason for the cost overruns and delays was an incompatibility between the new computer hardware and the existing FAA software. IBM, a major vendor involved, said that the reason for the incompatibility lay in the poor quality of the existing FAA software and its documentation. The FAA and its vendors claimed that the problems were resolved, and the new system controls were fully implemented. The incident at Atlanta, however, is cause for skepticism. The 6demonstrated inability of the FAA to provide adequate system control strengthens the argument that general aviation should be barred from the major airports. Such a restriction of access to general aviation would be a major blow to any hope for a revival of corporate aviation in the 1990s ("Preserving Access . . . ," 1989). Access to air traffic space and airport facilities in major population centers is recognized as a critical need for any future growth of corporate aviation (Taylor, 1989). Continued unrelieved congestion in the air and on the ground could ground corporate aviation in the 1990s (Bonneau, 1988). Chapter Summary Aviation design for general aviation aircraft holds great potential as an inc

Category: Business - C