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?
A HILLARD HEINTZE EXECUTIVE BRIEFING PAPER
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.
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.
The answer depends on the company – and many factors that
stand outside the scope of this briefing. Given the dichotomy of
viewpoints on this sensitive subject, equal consideration must be
given to the rationales of those who champion the use of private
aircraft as well as those who disparage this executive privilege.
But 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
quickly respond to 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.
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
Productivity and Efficiency Gains May Be Compelling
Reasons — But They’re Only Part of the Picture
Beyond the typical business rationale, a comprehensive appraisal
of executive use of private corporate jets must address its impact
on security – issues which aren’t always immediately apparent to
the CEO, CFO or the board – or to the company’s shareholders,
for that matter.
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.
Addressing Security and Risk Management Priorities May Also Be Critical
Business aviation offers advantages in addressing a host of security issues that range from common-sense safety
procedures to critical security best practices:
yy Improves operational and industrial security.
Using the corporate jet lessens the risk that
proprietary and sensitive information will be
compromised through loss or theft of a laptop or
peripheral. It also provides a secure environment
that allows executives to communicate without
fear of eavesdropping, industrial espionage or
physical threat.
yy Allows executives to enter or leave a country or
regional jurisdiction quickly. When a crisis unfolds,
a private plane allows executives to travel to the
affected area immediately. Also, should the local
environment on a foreign trip turn dangerous and a
“safe house” prove unavailable, the corporate jet can
provide a crucial haven until the crew can be located
and the plane leaves the runway.
yy Facilitates the travel of armed executive
protection specialists. Though licensed to carry
firearms, these professionals are unable to travel
armed on commercial flights.
yy Reduces or eliminates uncontrolled exposure to
the general public or the press. This strategy is
helpful when high profile executives or public issues
are involved. But it can also help the executive
protection team control the environment, filter all
assets, packages and people seeking entry or access,
monitor for suspicious circumstances and,
if necessary, conduct counter-intelligence operations.
yy Provides the ability to travel with a wide range of
protective equipment. This can include satellite
phones, F.A.T. medical kits, portable oxygen,
AEDs and supporting equipment (defibrillators),
protective armor, portable panic-alarm kits and
portable technical security technology (CCTV
and intrusion detection), as well as weapons and
ammunition.
THE HILLARD HEINTZE 360° INSIGHT ® | CORPORATE JETS: THE SECURITY RATIONALE
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, however, you can bring your
own doctor. You can also bring 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 securityrelated 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.
To find out more about establishing best practices in
corporate executive protection programs, contact:
John Orloff, Senior Vice President,
Security Risk Management
312.229.9828 or [email protected]
Arnette Heintze, Chief Executive Officer
312.869.8500 or [email protected]
The HILLARD HEINTZE 360° INSIGHT® publication is an ongoing and regular series of executive briefing papers on
a wide range of critical and emerging issues at the forefront of best-in-class security and investigative practices today.
To view other publications in the series, visit hillardheintze.com/360insight.
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