Corporate Aircraft Security Study

Lennon Security Corporation determines what type of security is needed to secure corporate aircraft and the employee. Once this is accomplished, the employer may be eligible to receive tax compensation benefits from the Internal Revenue Service.

Security Rule by the Internal Revenue Code (IRC 1.132-5 (m)) states if an employee falls under the “Safe Harbor Rules” then they can use a 200 percent multiplier when calculating personal use of an employer provided aircraft. This can produce significant savings if using aircraft that weigh more than 10,000 pounds.

However, the employee must be part of an overall security program. An overall security program is defined as a program in which security is provided to protect the employee on a 24-hour basis. Therefore, an overall security program is deemed to exist, with respect to an employee, if the following are satisfied:

• A security study needs to be performed by an independent security consultant. The security study provides a comprehensive assessment of security procedures currently employed for the corporation’s aircraft.
• The security study is based on an objective assessment of all facts and circumstances. The security study begins with Lennon Security interviewing and consulting with responsible parties in order to analyze potential threats presented to corporate executives specifically related to corporate aircraft security. The security study focuses on the following areas:
  • Base Facilities
  • Aircraft(s)
  • Passengers
  • Flight Operations
  • Domestic & International Security Procedures
  • Maintenance & Ground Operations
• The employer applies the specific security recommendations contained in the security study to the employee on a consistent basis. Lennon Security provides realistic recommendations which focus on enhancing security commensurate with identified risk; thereby affording adequate protection for the corporate executive(s).

An independent security study could conclude, for example, that security during air travel is necessary, but security on a 24-hour basis is unnecessary.