PROFESSIONAL PILOT ROI ANALYSIS Brown Avia+on Lease, LLC Innova&on from Acquisi&on through Disposi&on
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.
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.
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.)
METHODOLOGY Methodology Annual Mean Salary Figure 1.2 (This graph shows the mean annual salary according to the Bureau of Labor StaDsDcs)
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.
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
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
SOURCES Sources Salary InformaDon: www.bls.gov 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.
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: jgriswold@brownaviaDonlease.com Phone: 781.274.7356 Website: www.brownaviaDonlease.com Blog: hgp://blog.brownaviaDonlease.com