BUSINESS CLASS | The Scotsman Special report | Wednesday 3 September 20084
ing player with investment
continuing undeterred by
bleakeconomicforecasts.
People of high-net
personal worth certainly
represent a large portion of
the clientele but no more
than those from the world of
sport travelling on business,
andseniorcompanyofficials
from sectors such as oil
and gas, banking and multi-
national manufacturing
where time is, quite literally,
money.
Derek Thomson is opera-
tions director of Scotland's
only all-jet fleet of executive
aircraft � Air Charter Scot-
land � with bases at Glasgow,
Edinburgh and London
Luton airports. He is confi-
dent that simple arithmetic,
coupled with time-saving
convenience, will keep his
planesintheair.
"Even during the credit
crunch we have noticed no
effect on business; senior
peoplestillhavetotraveland
we are continuing to add to
our fleet with another air-
craft by the end of the year
and two more by the end of
2009,"heinsists.
"A trip from Glasgow to
Gothenburg could cost
around �7,000-�8,000 with
about four hours in the air,
usually carrying one to three
passengers. It seems a lot on
thefaceofitbutinthebigger
picture of the importance of
IT MAY be the preferred
mode of transport of movie
moguls,butfrombehindthe
perceivedglitteroftheexecu-
tive private charter jet come
claims of hard-headed busi-
ness vision, sharpened by a
tougheconomicoutlook.
This is an expanding niche
of the otherwise bruised
passenger aviation sector,
oneinwhichtheUKisalead-
More businesses chartering a
new course with private jets
Private jets can
be vital when
time is money
Are travel prices fuelling a
rethink for prudent firms?
Budget airlines may well be coming the carriers of choice for business, reports KenMann
Main, economic
factors such as
fuel prices make
budget airlines
an increasingly
attractive
option. Left, Liz
Cameron of the
Scottish
Chambers of
Commerce Picture:
Craig Stephen
bmibaby, believes he has evidence to contra-
dictanysuchclaims
"Ourpassengernumbersareupcompared
with last year. Our priority is to offer as many
lowfaresaspossible.Video-conferencingand
telephonecallsareallwellandgoodbutthey
certainly don't beat meeting people face-to-
face.
"If you want to fly with us you can do so
"Businesseshavetohaveemployeestravel-
ling,domesticallyorinternationally,tochase
contracts and service existing customers,"
Cameron says. "Transport is one of the high
expense elements for any business. The atti-
tude is to look closely at whether the trip
needs to be made and, if so, what the most
cost-effective method of getting there might
be. Where previously time would have been
thekeyindicator,nowitisprice."
Any major reduction in face-to-face rela-
tionships with customers can bring its own
dangers."Itisashort-termdecisiontoreduce
atravelbudgetby15percentifyoucouldlose
40percentofyourbusinesscustomersasare-
sultoffailingtoconnect,"shesays.
No-frills airlines have attracted both vol-
ume corporate customers and the SME/
owner-managed concern with an explosion
of route availability at highly attractive cost,
oftenimplyingthatthey,ratherthanthepre-
miumcarriers,arethefriendofbusiness.How
warmisthatrelationshiplikelytobeinfuture
as some cut or curtail routes and increase
fares?Dothebudgetcarriersriskloyaltyanda
dipinpassengerfootfallinthemediumterm
ifahelpinghandappearstobewithdrawn?
Julian Carr, commercial director at
Chambers across Scotland have taken calls
from members seeking advice on how to
make connections with new business
prospects, source new suppliers, or work in
alliance with other companies, as a means of
shoring up revenue channels and looking to
compete for the bigger contract ticket as a
confidence-sapping cold wind blows across
theirtraditionalbusinessmodel.
"Attimeswhenthereisabatteningdownof
thehatches,weareallgoingtolookathowwe
reduce our costs, or how we can go that little
butfurthertogetthatnewcontract.Thecom-
petition for new and sustainable business is
increasing,"saysCameron.
Looking for new opportunities almost
always implies meeting people, and not via a
videolink.Travelprogrammeswillneedmore
careful planning in order to reach a view on
the strength of the opportunity and in what
timeframebusinessmightbesecured.
P
LUNGING from downturn to reces-
sion in battered UKplc will thrust a
vexing conundrum on to the board-
room tables of small and medium
businesses. Should they market themselves
out of trouble, biting the bullet of escalating
travel costs against the gamble of sourcing
new sales on the back of the chemistry devel-
opedinpersonalpresentations?
Or does the financial director twist the
stopcock on expenditure to a mere trickle,
hopingtoavoidthespectreofclosurecaused
byalong-termconflictbetweenhighoperat-
ing costs and a low, or even dry, order
reservoir?
Sometimes forgotten in the good times,
commonsensedictatesthatallbusinessesare
peoplebusinesses.Digitalinterventionoffers
efficienciesandwillalwayshaveitsplace,but
old-fashioned investment in building and
maintaining face-to-face relationships is
widely acknowledged to be essential � if
you're not out there, you're not in there. As
always,it'saquestionofbalance,theexercise
ofjudgmentbeingtheinsurancepolicy.
Liz Cameron, chief executive of Scottish
ChambersofCommerce,arguesthatanylack
of strategic forward planning in a business
may cause irreparable damage to its
prospects in difficult times, but says the
decision to maintain important personal
relationshipsthroughnormaltravelcustoms
is very much based upon individual circum-
stancesinthecurrentclimate.
"The feedback we're getting is mixed." she
says."Somebusinessesareholdingtheirown
relatively well, although where companies
were looking to expand, then the lack of cap-
italaroundatthemomentiscertainlyhalting
previous plans to grow and develop. Most
businessesareadoptingacautionarynote.
"With smaller companies that are already
fragile, who do not have any form of contin-
gency, a new development plan or diversific-
ationintoothermarkets,wearegoingtoseea
numberofthesegoingoutofbusiness."
"The attitude is to look closely
at whether the trip needs to be
made and, if so, what is the
most cost-effective method of
getting there" Liz Cameron, SCC

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