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.	
  	
  	
  
METHODOLOGY	
  
Methodology	
  	
  


                      ROI	
  vs.	
  Weekly	
  Hours	
  
FINDINGS	
  
Findings	
  


                                                      Data	
  Table	
  

                                      Pilot	
        Lawyer	
             Teacher	
     Doctor	
  

   Undergraduate	
                    $87,032	
      $87,032	
            $87,032	
     $87,032	
  
   EducaDon	
  

   Specialty	
                        $51,900	
      $55,416	
            $0	
          $232,564	
  
   EducaDon	
  

   Mean	
  Salary	
                   $111,680	
     $110,590	
           $49,530	
     $186,044	
  

   Weekly	
  Hours	
                  53	
           55	
                 45	
          50	
  

   Years	
  in	
  Career	
            42	
           40	
                 43	
          34	
  

   ROI	
                              33	
           30	
                 23	
          19	
  

*See	
  slide	
  10	
  for	
  source	
  data	
  
CONCLUSION	
  
Conclusion       	
  	
  



From	
  the	
  data	
  we	
  can	
  determine	
  the	
  
following	
  return	
  on	
  each	
  dollar	
  invested:	
  

• 	
  The	
  pilot	
  will	
  earn	
  $33	
  per	
  dollar	
  
• 	
  The	
  lawyer	
  $30	
  per	
  dollar	
  
• 	
  The	
  teacher	
  $23	
  per	
  dollar	
  
• 	
  The	
  doctor	
  $19	
  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	
  

Professional Pilot ROI Analysis

  • 1.
    PROFESSIONAL  PILOT  ROI  ANALYSIS   Brown  Avia+on  Lease,  LLC   Innova&on  from  Acquisi&on  through  Disposi&on  
  • 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.
    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.
    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.
    METHODOLOGY   Methodology     Annual  Mean  Salary   Figure  1.2  (This  graph  shows  the  mean  annual  salary  according  to  the   Bureau  of  Labor  StaDsDcs)  
  • 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.
    METHODOLOGY   Methodology     ROI  vs.  Weekly  Hours  
  • 8.
    FINDINGS   Findings   Data  Table   Pilot   Lawyer   Teacher   Doctor   Undergraduate   $87,032   $87,032   $87,032   $87,032   EducaDon   Specialty   $51,900   $55,416   $0   $232,564   EducaDon   Mean  Salary   $111,680   $110,590   $49,530   $186,044   Weekly  Hours   53   55   45   50   Years  in  Career   42   40   43   34   ROI   33   30   23   19   *See  slide  10  for  source  data  
  • 9.
    CONCLUSION   Conclusion     From  the  data  we  can  determine  the   following  return  on  each  dollar  invested:   •   The  pilot  will  earn  $33  per  dollar   •   The  lawyer  $30  per  dollar   •   The  teacher  $23  per  dollar   •   The  doctor  $19  per  dollar  
  • 10.
    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.  
  • 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:  jgriswold@brownaviaDonlease.com   Phone:  781.274.7356   Website:    www.brownaviaDonlease.com   Blog:                  hgp://blog.brownaviaDonlease.com