Liftbrief / Direct questions
23. How can a CFO justify private aviation versus commercial business class?
Compare feasible door-to-door itineraries, cash expenditure and business objectives; show assumed time value separately. NBAA’s aircraft-use guidance recommends connecting aircraft use to business goals and establishing clear requesting and authorisation procedures. (nbaa.org)
Prepare a one-page approval memo:
| Field | What finance should see |
|---|---|
| Business objective | Meeting, site visit, transaction or other specific purpose |
| Feasible alternatives | Commercial premium cabin, private flight, rescheduling or remote participation |
| Cash expenditure | Flights, hotels, ground transport and other evidenced costs |
| Timing | Door-to-door elapsed time and meeting feasibility |
| Private-travel rationale | What the commercial option cannot achieve, if anything |
| Exposure | Unpriced charges, cancellation and recovery responsibilities |
| Decision | Approver, conditions and spending authority |
Illustrative example: private travel costs USD 40,000; a feasible commercial alternative costs USD 12,000. The incremental cash expenditure is USD 28,000.
If eight travellers each save four hours, the model shows 32 person-hours. At an assumed USD 500 per person-hour, the notional time value is USD 16,000—not USD 16,000 of cash saved and not proof that the private option is justified.
The conclusion may favour commercial travel. A credible approval process must allow that outcome.