Private jets in the industry

Greenhill.

1. I would say that every bank charters a plane when needed. I'm specifically talking about IPO/Follow-on roadshows, where the deal team and management (like 8-10 people) have 700 meetings to get to in 5 days. It makes economical sense at that point, and the client foots the bill in the end anyway.

My bank neither owns nor leases private planes, but our London office recently entertained the idea and had a sitting with NetJets I believe. I doubt they will go through with it, but it was interesting to me that they would consider that.

2. If it's a roadshow, the entire deal team goes. My bank is not a BB so even the Analyst can come pending the MD's approval.

3. I think it's common for wealthy people of any industry to eschew commercial airlines if they can afford it and the same goes especially for BSDs. I was on a pitch where we drove down in a rental car, but the MD/Director/VP took an "air-taxi" back to our city. I was stuck driving the car back by my lonesome, but that's how it goes sometimes, haha.

sounds like a really profound and meaningful topic to write a paper on for your "doctoral management" course. education in america has reached new heights!

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http://www.drmarkklein.blogspot.com/

fu

He said "sub-section."

i have my own aeroplane k

Private jets are very popular for roadshows. When flying on a private jet, you leave on your own schedule, so there is less buffer time for check-in and flight delays which leads to more time for meetings. In addition, time in the air is more productive. You can freely talk about the deal in the air, versus on a commercial jet you need to be careful because other people can overhear.

With an entire deal team flying on the same schedule, the cost differential between private jet and commercial becomes negliable. The team will be paying full fare for the commercial flight to accomodate last minute schedule changes (and most of this will be billable to the client). In addition, if schedules do change, you may not be able to get enough seats on the next flight for the entire team (think of how full today's planes are), let alone be able to sit with the client and build the relationship.

Levels who travel: C-level, MDs on roadshows, and the deal team, could include a role as junior as an analyst. (who's job it is to babysit the deal team)

Don't know of anyone in my group that takes private jets around at their own expense. Most still fly commercial, espeically in this economy. Most senior bankers get paid mostly in stock, financial stocks aren't doing great, you can do the math...

Air Travel in America, continues to sink to new lows. Similar to the domestic auto industry burdened with huge unionized health care costs, high cost of oil and a weakening consumer, the airline industry is in need of a dramatic reorganization.

eric: 'the fuck is a roadshow?

A roadshow is usually when a company that is planning to go public, or issue some kind of financial instrument that they want the public--follow on equity, debt (FIs, Pensions, etc., etc. aka the buyers) to know about it. The deal team, the executives, and anyone else worth listening to (!) makes pitches on why their issues are the perfect investment (every one always is). Their job is to promote the hell out of the security and more importantly, the company behind it.

Thank you all for your contributions. And for the poster above, it is an introductory paper; classes commence in a few weeks, not in America but in Britian, at Oxford's Said.