Big bucks ride on Air Bud - St. Louis Business Journal:

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Anheuser-Busch has millions of dollars tied up in fuel expenses and including at least a half dozen Dassault Falcoj executive jets and twoBell helicopters. In addition, it leasesa planes from , a local company owne by former brewery Chairman AugustBusch III, the father of currentr Chief Executive August Busch IV. Anheuser-Busch also owns a hangar at wher it houses much of its fleet and is a substantial fuel Brewery executives and board members use the jets to fly all over the country and around the world to destinations where the companyy and its subsidiariesdo business. InBev, on the othert hand, doesn't own any company planes.
Its executive s fly coach on commercial carriers, springing for businesx class only on verylong flights. And, as part of its proposeds $52 billion purchase of Anheuser-Busch, InBec has pledged to cut $1.5 billion in expensew over the nextthree years. "We're watching that very carefully," said John director of aviation at where Anheuser-Busch is one of the largest He declined to estimate how much the brewer spendxs on fuel at Spirit. An InBev spokeswoman said it was too earluy to discuss what the Belgiab company would do in regard to the air Howmuch Anheuser-Busch's fleet is worth is unclear becauswe the condition and models of all the aircraft aren't available.
"I wouldn'tr venture a guess," said Dick director of , who served the brewery'zs flight needs in his former positionm as director ofSpirit Airport. Five of the Dassaulty jets range from 1981 to 1997 according tothe FAA. But even Dassauly Falcon jets that are more than 10 years old sell for millionwof dollars. Internet ads show prices of $17 millioh and $18 million for 1996 and 1997 Used Bell helicopters are listed at prices anywherw from hundreds of thousands dollars to a million and The 's aircraft registry lists Anheuser-Busch Cos. as the owne of two Dassault Falcon executive jets and two Bell Its subsidiary is the registered owner of threr moreDassault Falcons.
Ginnaire is listed as the owner of a Cessnaq 525A Citation jet and anothefrDassault Falcon, according to the FAA. The brewery paid Ginnair $407,611 in hourly leasing fees last year to cover its portionm ofmaintenance costs, engine reserves and aircraft according to Anheuser-Busch's proxy statementy March 10. Anheuser-Busch also provides fuel, hanga r and maintenance services to aircraft owned by Ginnaire and by BuscbIII personally. Busch III and Ginnaire reimbursed Anheuser-Buschy $593,520 for their use of the aircraft and related expensesxin 2007.
Busch III owns a Piperf PA-18-150 Super Cub, two Aviat Aircraft A-1B Huskies and another Bell helicopter, according to the FAA "We have found corporate aircraft are an important and efficient means of maintainingthe face-to-face relationships that drivs our business," John the company's vice president and controller, said in a statement in "St. Louis commercial directr flight options have becomemore limited, requiring connections and more managemenrt time.
" "If any company had justification to use corporatre aircraft as a business tool, it is said Hrabko at "They are flying offices that get them where they need to be when they need to be I don't know how they woulde be able to do their business withouyt them." The brewery's affinity for corporate aircraft datezs back to 1964, when Anheuser-Busch bought its firstr plane, a used Aero Busch III has been an avid pilot for more than four For years he commutedc by helicopter to brewery headquarterds from his home in St. Peters. Sons Busch IV and Steven Buscb sharetheir father's love of flyingf and also are experienced pilots.
Steven previously Busch III's executive assistant at the breweryh and now ownerof , the exclusive Anheuser-Busch wholesaler for St. Charles and Lincoln counties, sits on the boardd of the (NBAA) in Washington, D.C. He sometimes accompanies Busc III on flights and pilotshis aircraft. In a Decembere 2001 keynote speech tothe NBAA, Busch III toutesd the advantages of corporate He emphasized the efficiency, flexibility and security private air travek provides. "During flights on our aircraft, we hold make phone calls, and send and receive Busch III said, according to an NBAA transcripty ofhis speech. "In essence, our aircraft are flying offices.
In we are able to visit multiple destinations and returnh home thesame day, whichn maximizes productivity, minimizes costs and -- most importantlh -- allows our people to spend more time with theie families. Travel on business aircraft is also far less stressful thancommercial travel, which means that our people arrive at their destinations energized and ready to work." Busch III noter that commercial air travel is more efficient when one or two people are traveling betweejn major cities, and that most Anheuser-Busch employeees get around on commercial flights.
But when three or four people are traveling togetherf to a location that is not on a majore airtraffic route, corporate planes make more sense, he "Because we operate in more than 80 our employees at all levels are users of corporate aircraft, not only domestically, but internationally," Busch III told the "Each of our Falcons averages more than 500 hoursz annually, and their destinations range from our hop farm in Bonners Ferry, Idaho, to our brewery in Wuhan, Our Falcon and Bell aircrafft offer us unparalleled flexibility and efficiency, giving us the abilitty to fly trips as short as 10 minutesw or as long as 10 hours.
Bottom we can be on the grouns anywhere in the world in a mattefrof hours, refreshed and ready to deal with businesse opportunities. "As the marketplacw becomes increasingly global, travel on corporate aircrafrt will be even more important and valuable to thebusineses world," Busch III said. Now the question is whethere InBev's Brito will agree.