Recently, I joined a panel to address a pressing question: why are Part 91 flight departments shutting down?
This important discussion was initiated by NBAA’s Business Aviation Management Committee. Just this summer, some of my BAMC colleagues and I formed a task force to identify root causes for the closures and to offer resources.
After all, companies like Steelcase, Harley-Davidson and VF no longer maintain dedicated operations. So why are legacy flight departments—once essential to corporate aviation—disappearing?
The common theme, as highlighted by our panelists, is misalignment between flight departments and corporate leadership.
Below are takeaways from our BAMC panel at NBAA-BACE, which was co-moderated by Dean Walters, CAM, and Julie Goodridge, CAM.
The Importance of Proactive Leadership
As a flight department leader, you’re not just managing aircraft. You’re running a small business within a larger corporate structure. But does your leadership team recognize how your department enhances productivity, saves time or strengthens the company’s image?
One West Coast aviation director put it best: “We’re here to enhance productivity for our senior leaders. The question is—are we proving that value clearly enough?”
Proving your value starts with data. Data that helps you quantify how much time your department saves executives. You also can share relatable anecdotes, such as how business aviation reduces overnight stays or ensures secure travel.
Transparency is equally vital. If utilization is low, speak up. If your fleet isn’t meeting the company’s needs, propose solutions. Proactivity fosters trust and positions you as a strategic partner, not just an operations manager.
As Jim Lara, principal of Gray Stone Advisors, succinctly put it, “Our flight departments need to answer the question in terms of a value proposition: ‘Why do we exist?’”
And who is best equipped to define that value? According to Lara, it’s “the recipient of the services, not the provider.”
“Our job,” he continued, “is to define the service model that fulfills our organization’s value proposition.” Without this clarity, flight departments become vulnerable to cuts or outsourcing.
Building Corporate Partnerships
Historically, Part 91 flight departments operated “under the radar.” Today, that strategy no longer works—and it’s no longer common. They’re much more inclusive within the enterprise. Successful aviation leaders build bridges across their organizations. They engage HR, finance and legal teams. These internal champions can advocate for your department when it matters most.
During the panel, I shared an interesting story about a former API client. After the launch of her new corporate flight department, members of her executive leadership publicly celebrated their aviation team during an all-hands meeting. “I about fell out of my chair,” she explained. “I’ve never seen that kind of outright recognition before.”
In my experience, that kind of support only happens when your operation is integrated into the organization’s culture and priorities.
Part 91 Flight Departments: Addressing Outsourcing Fears
Outsourcing and fractional solutions often seem like appealing alternatives to corporate leaders. They promise cost savings, but frequently fail to match the value and reliability of an in-house flight department.
One panelist shared the story of a close call with outsourcing. A board member encouraged the CEO to explore charter solutions. The director proactively presented a detailed comparison of costs, service and reliability. Ultimately, the CEO decided to reinstate the department.
The takeaway? Always be ready to justify your department’s existence. Demonstrate your alignment with corporate priorities, and consistently communicate in terms your leadership understands.
Takeaways:
- Define Your Value Proposition: Engage your stakeholders—the recipients of your service—to articulate how business aviation adds value to the enterprise. Why does your department exist?
- Deliver on that Value: Once the value is clear, develop and implement a service model that effectively delivers on the defined value proposition.
- Communicate with Corporate: Share data and stories that illustrate your impact, highlighting how your assets and team save the company time and drive efficiency.
- Engage Internally: Partner with HR, finance and legal to build advocates.
- Address Weaknesses: Proactively identify and resolve operational gaps.
- Join the Conversation: Participate in the NBAA’s monthly calls to share and learn.
Next Steps: Let’s Start Talking
While we can’t solve every challenge overnight, collaboration is key. To that end, the NBAA is hosting monthly calls for flight department leaders to address these pressing issues. The BAMC task force will guide confidential discussions, offering a safe space to share solutions, challenges and insights. The next BAMC task force calls will take place on January 9 and February 13, 2025. To opt into the meeting invite, please email Julie Goodridge.
If you’re a Part 91 leader, I encourage you to join us. Together, we can secure the future of flight departments and protect their value within corporate enterprises.