Exhibit 1 – WSJ article  Corporate Jet Set: Leisure vs. Business

Corporate flying is paid for by the company and governed by Part 91 of the Federal Aviation Regulations.  Many public companies will also allow their executives personal use of the corporate plane for a number of reasons, provided that income is imputed (and taxes paid) for the benefit of such use.   The typical reason is that senior level execs greatly intermingle their business and personal lives such that what looks like a pleasure trip to a reporter is more likely a trip home but with some intermittent business conducted before, during, and afterwards.   Issues arise because of questions surrounding the true purpose of the trip, or the vastly subsidized nature of these trips when income is imputed.

While it is true that the line between business and leisure can be somewhat blurry, there is a cleaner way to conduct business, so pay attention members of the various Boards of Directors reading this post.  Simply put, executives are highly compensated individuals.  If they have a need to use an airplane personally, they can do so by paying for a flight governed by Part 135 of the Federal Aviation Regulations (called “Charter”).  If the company’s planes are placed on a 135 certificate, then the company can legally charter its airplanes to its executives, or any member of the public it so desires.

Charter is a very clean way to do business because the executive is personally paying for their personal use at a ‘retail’ rate…so there is NO ambiguity as to whether or not the trip is business or personal.  Further, charter trips actually make the company that owns the airplane a little money.  Thus, executives flying corporate aircraft as paying charter clients shoulder 100% of the burden of their personal use (paid for by their own money) and the company makes a small incremental profit on the trips.

Corporate aviation can be done responsibly.   Jetpool handles trips for executives at public companies using the charter method described above on a routine basis.  The public company avoids problems because it has established a very clear line between business (Part 91 governed, corporately paid) and personal use (Part 135 governed, privately paid).

This path is not the easiest to take in a competitive market because most companies will offer personal use as a ‘perk’.  However, from a corporate governance perspective, I think it is the cleanest way for a public company to operate and be a good steward of its shareholders’ investment.  Private aviation is a necessity for conducting business in today’s environment, and when done responsibly, doesn’t have to paint a bulls-eye on the shirt of corporate America.   So the next time you hear about the perk of personal use of the corporate jet, you can be the smart one in the boardroom and suggest the public company adopt a policy of “Charter for personal use”!

Sunday June 26th, 3 – 6pm   Jetpool’s Hanger

Where: Las Vegas, NV