Managing a flight operation brings many challenges. However, one of the most daunting issues for some aviation managers is ensuring that executives understand the value of flight operations and how business aviation contributes to the company’s overall success.
Because flight departments don’t create revenue, it’s easy for executives and board members to question the cost of operations and perhaps view aviation as a luxury, rather than a business tool. For that reason, experts say it is critical that directors of aviation work regularly on maintaining and strengthening their relationships with the CEO and other senior executives.
“These corporate leaders aren’t really aviation enthusiasts,” said David Wyndham, a professor of aeronautical sciences and drone flying for Embry-Riddle Aeronautical University and former president of Conklin and de Decker. “And many of our aviation managers are not entrepreneurs or business enthusiasts. I mean, they like business, of course, but they’re not looking to start a little business on the side. They don’t always have that business acumen. So, we have to learn different languages.”
Regular communication between flight department managers and CEOs is the best way to ensure they understand operations and what it takes to maintain airworthiness and safety. Show them how spending several hundred thousand dollars now can save a million later, while improving safety and efficiency. Make sure they also understand that a healthy flight department provides company personnel with the flexibility to fly on a moment’s notice and spend more one-on-one time with clients and fellow employees.
That’s often easier said than done.
Can You Get Face Time?
Because it is so specialized, an aviation department typically operates in the background, hidden from the rest of the company and its personnel. And, of course, it usually is located offsite, at the airport. So, often many flight departments interact with the CEO and senior staff only during a business flight, which makes it difficult to have the “face time” required with the CEO or other senior executives to establish a solid working relationship. That can be especially true at larger corporations where aviation managers often report directly to someone other than the CEO.
“Many flight departments now report to an interim manager or someone in between,” said Walther Kraujalis, founder and president of AeronomX Business Aviation Consulting & Audits. “Typically, they report to the head of human resources or the chief operating officer, or maybe someone who reports to the CFO. So, it’s always important to have a good interaction with who you report to and also your principal passengers, which presumably includes the CEO, just to stay in tune with whatever their needs are and what their plans are, coming up.”
NBAA’s Management Guide includes useful information designed to educate non-aviation company personnel on accepted practices and norms of the business aviation community. This resource can help ensure that all company personnel appreciate and understand the operation, capabilities and value of the flight department.
Are You Communicating Your Value?
Many C-suite executives, while appreciating the convenience of having access to a business aircraft, don’t always understand the flight operation’s value, especially when evaluating costs versus benefits.
“The company airplane often is just another tool in the company,” said Wyndham. “Where the airplane runs at a disadvantage is that it’s clearly not a profit center. If you’re manufacturing something, then you can look at whatever product you’re manufacturing and say: ‘Are we making money off of this particular product? It cost x to make and y to sell; equals profit margin.’ The aircraft is a step removed from that.”
All the more reason why establishing solid relationships with senior managers and the CEO can be critical to the department’s growth and success. Experts agree it’s vital for the aviation department to promote itself as another part of the company so that other departments understand its activities and contributions.
Open and Honest Discussion
Conversely, aviation managers should seek to fully understand the company’s business and not simply focus on their own operations. They should also continually educate others across the firm – especially in the C-suite – about how the flight operation contributes to the company’s success.
“Sometimes you have to step outside your comfort zone,” said William Riter, aviation department manager of Rich Products Corp., an international, family-owned frozen food company. “You need to be prepared to approach the chairman or CEO to inform them about your efforts to improve your department. Don’t hesitate to have an open and honest discussion because that’s what they expect. They want you to communicate both successes and challenges transparently.”
Riter – a former pilot and non-flying department manager – said he is extremely fortunate because Rich’s, which operates three aircraft, a sizable flight department and a top-notch support staff, sees the value a flight department adds to the overall business.
That’s evident by the fact that the company’s planes remain busy, carrying company executives and other passengers primarily to locations in the U.S.
“We primarily transport the C-suite, including the chairman and CEO, along with a significant portion of our senior executive team,” Riter explained. “Additionally, we frequently fly our associates to various plants across the country.
Approximately 85% of our flights are domestic, with a few major trips to Europe and other global destinations.”
Be Prepared
Riter said he’s established such a strong relationship with top-level executives that he never hesitates to approach the chairman or CEO with flight department needs or issues.
“I do have an adviser who oversees what we call Rich Entertainment Group,” Riter said, adding that he meets with his adviser several times a week. “I communicate regularly with my adviser, who I have a great relationship with, and I also report directly to the chairman. This ensures that the chairman is fully informed about everything happening within our department. My adviser and the chairman also have weekly discussions, which further facilitates transparency and alignment.”
Riter said building relationships with the C-suite boils down to good communication and understanding the needs of the business overall. When approaching the chairman, CEO or any busy senior executive about issues or improvements to company aircraft, Riter emphasizes the need to be prepared.
“I mean preparation in every aspect,” Riter said. “When presenting an issue that could impact them, it’s crucial to not only identify the problem but also come prepared with solutions and alternatives. Be prepared to answer any and all questions fielded by the chairman or CEO. There will be something that they’re going to want to know about. Be prepared, and if you don’t know it, be humble enough to say, ‘I don’t have that answer, but let me discuss it with my director of maintenance or my chief pilot. Let me get their take and get back to you.’ So, it’s important to always be upfront, honest and open. There needs to be continuous, organic discussions.”
At the end of each year, Riter delivers a one-page executive summary to the chairman and the senior executive team, outlining the year’s accomplishments, highlighting successes, addressing challenges and proposing strategies for improvement in the coming year.
All this, Riter said, helps keep senior management informed and aware of the overall value the aviation department brings to the company.
International Business Aviation Council Ltd.