Layoffs and Private Jets: Integrity Issue?
A Wall Street Journal article describes a lack of consistency, which students might identify as an integrity issue: employees are laid off while companies increase use of private jets for executives. Student may analyze the reasons provided and draw their own conclusions.
Although other executive perks have declined, private flights have increased 76.7% since 2020. The WSJ article cites safety as the most common justification, with the murder of UnitedHealth CEO Brian Thompson as an example.
The National Business Aviation Association (NBAA) helps companies with proactive messaging. A long webpage is titled, “Toot Your Own Horn: Bizav [business aviation] Operators Tell Their Own Stories,” with the subtitle, “The value of building a proactive internal campaign to support your flight operation.” Although we’re seeing more external criticism, the article focuses on internal communication:
Business aviation is often misrepresented in the mainstream media, cast as a villain for the sake of a soundbite. Are you prepared to share the value your flight department brings to the company and the community, whether to principals or shareholders?
Long-time business aviation professionals shared with Business Aviation Insider their business aviation “whys” and also offered suggestions on how to build a proactive internal campaign to support a flight operation.
The arguments are fascinating. Students can analyze the claims, including data comparisons, for example, these:
[Business aviation] actually contributes less than one-half of 1% of man-made global emissions.
The reality is only about 3% of the approximately 15,000 business aircraft registered in the U.S. are flown by Fortune 500 companies.
Although the percentages are small, the figures may not be convincing. Another claim, an environmental “goal,” doesn’t have much meaning:
In your environmental discussions, reinforce that business aviation has adopted the goal of net-zero carbon emissions by 2050.
Students can analyze other arguments about efficiency and do their own research to update the 2003 business aviation page. For example, the safety issue—the primary rationale given by executives interviewed in the WSJ article—isn’t included in this 2023 article. On the other hand, the WSJ article provides context of the recent economic environment—the contrast between cutting costs by layoffs and, presumably, increasing costs by adding private air travel.
Addressing the issue today, organizations might take a more balanced approach. They might explain the efficiencies and safety issues for executives, yet acknowledge that the “optics” aren’t good. In other words, private flights may appear to be an ethical failure, but the decision may be consistent with corporate goals for increasing efficiency and ensuring safety. Executives might convey the message themselves to demonstrate accountability for the decision. That would be a different approach than what the NBAA recommends.