Protecting What Matters

VOL. II ARTICLE NO. 119

Corporate Jets: The Security Rationale

Business Aviation is a Key Element in Best-in-Class Executive Protection Programs. Should It Be a Priority in Yours?

When the chief executives from the top three U.S. automakers flew private corporate jets to Washington in late 2008 to request bailout money from Congress, they ran into some turbulence.1 From a security perspective, however, they did the right thing. Put politics aside. And the national media frenzy that ensued. In a quiet but very important way, this much-hyped event raised an issue that’s enormously relevant right now.

As companies across industries – from financial services to telecommunications and manufacturing – struggle to translate fragile top-line revenue growth into stronger bottom-line profits, should they cut back on expense items such as executive use of private corporate jets? Maybe. And maybe not. That question depends on the company – and on many factors that stand outside the scope of this briefing. But the answer should always take into account considerations that extend beyond the typical business rationale to security issues that aren’t always immediately apparent to the CEO, CFO or the board – or to the company’s shareholders, for that matter.

Productivity and Efficiency Gains May Be Compelling Reasons –
But They’re Only Part of the Picture

The use of private aircraft by businesses is both championed and disparaged by advocates and critics alike as an executive privilege. In many cases, it is – and, arguably, perhaps should be. But that’s beside the point. What should matter most is whether using corporate jets advances business objectives and shareholder interests. And in many cases, it does.

Business aviation can help companies:

  1. Reach multiple destinations quickly and efficiently;
  2. Increase executive productivity by allowing employees to meet, work and plan en route;
  3. Access communities with little or no airline service – which amount to ten times the number of communities (5,000 airports) served by commercial airlines (500 airports);
  4. Ensure flexibility in travel scheduling and the ability to take rapid advantage of opportunities as they arise and change;
  5. Remain in contact and communication for the duration of a flight – a critical factor for companies managing a rapidly changing situation; and,
  6. Avoid the often significant business impacts associated with commercial flight cancellations, delays, and re-booking difficulties as well as the business costs of failing to arrive on time for a key meeting.2

Addressing Security and Risk Management Priorities May Also Be Critical

Woven across these business factors, however, are a host of security issues that range from common-sense safety procedures to critical security best practices. In short, business aviation:

For More Information

To find out more about establishing best practices in corporate executive protection programs, contact:


1 The Washington Post, Dana Millbank, “Auto Execs Fly Corporate Jets to D.C., Tin Cups in Hand”, 11/20/08.
2 The National Business Aviation Association and General Aviation Manufacturers Association.

About 360° INSIGHT

The Hillard Heintze 360° INSIGHT publication is an ongoing and regular series of executive briefings on a wide range of critical and emerging issues at the forefront of best-in-class security and investigative practices today.

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Practical Tips for Execution: Our Recommendations

Tip #1 – Understand precisely what the IRS guidelines are for security-related transportation expenses

You can no longer simply write off the Gulfstream G550’s entire lease payment. You can, however, expense certain transportation costs associated with an executive protection program – if you can demonstrate (in compliance with Title 26, CFR 1.132-5) that a “bona fide business-oriented security concern” exists.

Tip #2 – Acknowledge that, for overseas corporate travel, the rules – and the risks – are significantly different

Some countries, for example, will allow business passengers on commercial flights to bring only the prescriptions currently being taken. If you fly in on a private corporate plane, you can bring your own doctor, for example, or a significant supply of emergency cash which, in our experience, can sometimes exceed seven figures.

Tip #3 – Don’t let your senior leaders “nix” the corporate aviation program because they think the expense is about “who they are” Explain to them that it’s not. It’s about “what they are”.

The single most powerful security-related argument supporting business aviation is that it isn’t ultimately about security at all. Preventing harm to the leadership team is an essential component of key corporate priorities such as corporate risk management, brand protection, business continuity and – quarter after quarter – predictable bottom-line business performance.