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Riding high: For some, business commute is airborne

Aviation lawyer Greg Winton charges by the hour, including time in transit, so his clients actually prefer that he jump into his airplane for a trip to their office.

A trained flight instructor and qualified commercial pilot, Winton commutes to business meetings at least twice a month in his six-seat Piper Lance.

Business aviation is a slowly growing trend among small companies, according to the National Business Aviation Association.

The popularity of corporate flying rises and falls with the economy. After the market failed in late 2008, flight hours declined by about 40 percent, NBAA spokesman Dan Hubbard said.

Since early 2010, NBAA has seen a gradual turnaround, Hubbard said, but estimated hours flown still sit about 25 percent below 2007.

The General Aviation Manufacturers Association calculated 2,971 registered active general aviation aircraft in Maryland in 2009, about 300 more planes than registered in the previous two years.

General aviation is on a downward trend, GAMA Communications Director Katie Pribyl said. While there are some signs of recovery, the business of flight is “not out of the weeds yet,” she said.

Benefits of small- business aviation

Boni Caldeira sells airplanes, so he regards flying himself to client meetings as a company demonstration.

Some potential customers who join Frederick-based Caldeira on business end up buying planes for their companies, he said.

Caldeira, a regional sales manager with Cirrus Design Corp., flies a company plane to neighboring states, when flying commercial would be inconvenient.

“For a short trip, it’s really annoying to have to put up with … layovers and fewer direct flights,” he said.

New Era Custom Design and Cabinet Works Inc. President John Gage uses his Beechcraft Baron twin-engine piston at least once a week for business travel.

This past week, Gage flew to Princeton, N.J., and Philadelphia for client meetings and site consultations. He can usually find an airport 10 to 15 minutes from his final destination, and often uses the airport’s courtesy car service or rents a vehicle for the day.

“It’s a huge time-saver,” Gage said. “I like to be home at night.”

Convenience is a draw for many small businesses.

“I’ll fly to Ithaca, N.Y., to get some business done, then fly to Pittsburgh, and I’ll be home for dinner,” Caldeira said.

Commercial airlines offer limited service to upstate New York, he said. “There is no train that goes there. The bus takes forever. It’s six hours to drive.”

Instead of landing at larger airports like Dulles International or Baltimore/Washington International Thurgood Marshall, pilots can touch down in Frederick, he said.

“From a local economy standpoint, the more businesses that choose to travel privately, the better for the local area.”

The Frederick Municipal Airport is not known as a flight commuter hub, but the option is available.

“At the end of the day, it’s an airport with a runway and fuel and services. There is no reason why that can’t be done,” Airport Manager Kevin Daugherty said.

Pilots can store planes at the airport for a day, as Gage used to do, but that is rare. Few people can afford the cost of fuel or the aircraft itself, Daugherty said.

Once a new airport control tower opens next year, Daugherty expects to attract more business operators.

About 17,000 business aviation planes are operated by about 15,000 individuals or companies in the U.S, according to NBAA. That number has increased incrementally, Hubbard said, from about 15,000 planes in 2004.

Costs ground businesses in recession

Some companies purchase fleets of wheeled vehicles for travel; others are drawn to advantages of flight.

A business might look at productivity when considering an aircraft purchase, Hubbard said.

“A company might say, ‘Well, the plane was instrumental in helping us land this deal/client/customer. We were able to respond to a customer’s inquiry immediately. Could we have done that with a car?'”

New Era’s work is largely limited to the Washington area, but employees sometimes get to pile into Gage’s six-seater for out-of-town installations. Piloting his plane saves the company time and expenses, Gage said.

“It means a lot to clients to know that I can be there on short notice, to work out problems (or) check out field conditions,” he said.

Winton calculates that his business trips cost about $200 per hour for fuel and maintenance costs.

General aviation costs are usually computed by the hour, Pribyl said. Cost-per-mile varies greatly depending on the model of airplane.

According to Business & Commercial Aviation magazine, 2010 per-mile fuel costs for a 600-mile trip might equal about $2.37 for a single turbine engine Cessna Caravan, close to $2.70 for a twin-turboprop Beechcraft King Air and about $2.10 per mile for a light jet.

Factoring in the purchase of a plane, aviation is not a cheap option. But small-business pilots find it expedient.

“This way, I am in the air within five to seven minutes from starting my engine,” Winton said. “I never have to take off my shoes and belt.”

The future of business aviation is uncertain, according to NBAA, but Hubbard mentioned some factors that could drive growth.

As business moves faster and becomes more competitive, the marketplace looks to expand opportunities, he said, and small airplanes can make companies more nimble and competitive.

Also, during the recession, commercial airlines cut service to some areas, Hubbard said.

“A business airplane may not be only the prudent option, but may be the only option.”

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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