Revealing Solid Benefits of Business Aircraft Use

[HPNPilot1200]

For those that receive Professional Pilot Magazine, check out the November 2010 edition for an excellent article by Victor Anvick who shares his experience and insight as an aviation tax specialist in revealing the sold benefits of business aircraft use. I tried to find a digital copy of the article online but was unable to locate one.

In his article, he mentions these main objectives:

• How to position the flight department as a profit center rather than a cost center
• Employee morale and local public perceptions of small and large businesses that use private aircraft to maintain, enhance, and promote their business activities, thereby increasing employment
• How aircraft OEMs can help their own case
• Tax and financial aspects of the sale of an airplane or closure of a flight department

A few other notable points Victor makes:

• Using the "matching concept" accounting principle to record and recognize expenses for a particular period of time to associate with revenues generated by enterprises
• Documenting trip approval, purpose of trips and expected accomplishments as well as post-trip evaluations to compare what was actually accomplished and the contact information of persons visited or contacted
• Using this documentation for specific IRS audit defense if necessary
• Opening employee communication to inform that the company operates a business aircraft and that it has and continues to have a direct beneficial impact on business (securing new business, managing distant operations, increasing efficiency, etc)
• Going on the offensive to justify aircraft ownership. Justifying the aircraft to your employees is just as important as defending aircraft deductions before the IRS
• Utilizing the "No Plane No Gain" campaign through innovative avenues such as placing the "No Plane No Gain" logo on checks, signature areas on documents, etc.
• Transforming aircraft marketing and sales professionals into aviation business consultants who provide an expanding knowledge of various topics (taxes, analyzing and interpreting financial statements, business plans, etc.) to promote a new level of respect for clients and close more sales with fewer order cancellations
• Constructive input on behalf of these "aviation business consultants" to preserve orders before letting a situation deteriorate to a point where order cancellation is necessary
• Referring to prospective aircraft buyers as clients, resulting in greater retention and increased product loyalty by consumers
• Tasteful marketing of aircraft in our current "needs-based" economy
• Properly analyzing the tax and financial consequences of selling an aircraft

I found many of the points discussed represent some very interesting ideas that can be spread within other sectors of general aviation in our present state to promote our passion of flying.

Safe flying,
Jason