[adventured]

Given the theoretically very high level of importance a CEO has within an organization, isn't it critical that their productivity be optimized?

Traditional airport travel now is incredibly inefficient in terms of time cost. Not to mention being able to fly when and where you want to upon command, is very valuable for extremely large businesses.

A CEO like Jeffrey Immelt might fly four or five days per week (per what I've read about his rather insane schedule in the past). Add just two hours per flight to his time cost, and that becomes wildly expensive.

[MisterBastahrd]

All airport travel is highly inefficient compared to staying in your office and being connected through the internet.

[anigbrowl]

This is one response, and I could add that for flying business class it's not the same sort of standing-in-line tedium that the general public is subjected to. But even then, Sam Walton (of Wal-Mart fame) was famous for flying coach, and I doubt anyone questioned his executive productivity.

But I'm not saying corporations shouldn't ever use private jets, just that their use often seems optional rather than a matter of business necessity, which has implications for how such expenses are taxed.