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Brown ROI Analysis


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Brown ROI Analysis

  1. 1. PROFESSIONAL  PILOT  ROI  ANALYSIS  Brown  Avia+on  Lease,  LLC  Innova&on  from  Acquisi&on  through  Disposi&on  
  2. 2. BACKGROUND  Background  to  the  analysis     The  purpose  of  this  analysis  is  to  communicate  to  prospecDve  pilots  the  value  proposiDon  of  the  professional  pilot  career.     We  used  data  from  the  Bureau  of  Labor  StaDsDcs  and  compared  four  careers:  commercial  pilot,  doctor,  teacher,  and  lawyer.  
  3. 3. METHODOLOGY  Methodology    ROI,  or  return  on  investment,  is  a  performance  measure  used  to  evaluate  the  efficiency  of  an  investment.    This  is  the  original  equaDon:   ROI  =  Gain  From  Investment  –  Cost  of  Investment   Cost  of  Investment  Adjusted  for  our  analysis  here  is  the  new  equaDon:   ROI  =  (Annual  Mean  Salary  x  Average  Years  in  Workforce)  –  Cost  of  Educa+on   Cost  of  Educa+on  This  equaDon  calculates  the  potenDal  career  earnings  compared  to  the  cost  to  obtain  a  Bachelors  Degree  and  career-­‐specific  training.    The  output  is  return  on  investment.  
  4. 4. METHODOLOGY  Methodology     Total  Cost  to  Obtain  Required  EducaDon  Figure  1.1  (This  graph  shows  the  total  cost  of  educaDon  required  to  be  in   that  profession.    Dollars  are  on  the  Y  axis.)  
  5. 5. METHODOLOGY  Methodology     Annual  Mean  Salary   Figure  1.2  (This  graph  shows  the  mean  annual  salary  according  to  the   Bureau  of  Labor  StaDsDcs)  
  6. 6. METHODOLOGY  Methodology    The  next  step  to  this  equaDon  is  to  plot  the  ROI  number  and  then  take  a  look  at  a  quality  of  life  metric.    We  chose  hours  worked  in  an  average  week.      
  7. 7. METHODOLOGY  Methodology     ROI  vs.  Weekly  Hours  
  8. 8. FINDINGS  Findings   Data  Table   Pilot   Lawyer   Teacher   Doctor   Undergraduate   $87,032   $87,032   $87,032   $87,032   EducaDon   Specialty   $46,300   $55,416   $0   $232,564   EducaDon   Mean  Salary   $117,060   $129,020   $49,530   $168,550   Weekly  Hours   53   55   45   50   Years  in  Career   42   40   43   34   ROI   38   35   23   17  *See  slide  9  for  source  data  
  9. 9. CONCLUSION  Conclusion    From  the  data  we  can  determine  the  following  return  on  each  dollar  invested:  •   The  pilot  will  earn  $38  per  dollar  •   The  lawyer  $35  per  dollar  •   The  teacher  $23  per  dollar  •   The  doctor  $17  per  dollar  
  10. 10. SOURCES  Sources    Salary  InformaDon:  Undergraduate  Degree  Cost:    NaDonal  Center  for  EducaDon  StaDsDcs  Pilot:    Embry-­‐Riddle  AeronauDcal  University  Doctor:    AssociaDon  of  American  Medical  Colleges  Lawyer:      American  Bar  AssociaDon  *For  the  teacher,  we  assumed  a  High  School  Level  teacher.  
  11. 11. CONTACT  INFORMATION   CONTACT  We  hope  this  informaDon  will  be  useful  and  provide  a  beger  means  to  effecDvely  communicate  the  value  of  working  as  a  professional  pilot.   Jason  Griswold   Managing  Director   Brown  AviaDon  Lease,  LLC   Email:   Phone:  781.274.7356   Website:   Blog:                  hgp://