Is business class ever justified for development officials?

A senior executive at one of the Asian Development Bank’s overseas missions, John has become a seasoned traveler over the course of his long career at the bank. John (who asked not to use his real name) flies on official business for the bank once a week. In line with ADB policy, John says that he usually makes a left turn when boarding. “There have been times where I spent up to 60-80 hours a month for traveling, often flying through the night and dealing with chaotic airports,” explained John. “Traveling in business makes it a bit more bearable.” In an industry where frequent international travel is more the norm than the exception, it’s no secret that many development officials like John have grown accustomed to flying in the front cabin. On flights out of Freetown or Port-au-Prince, you’re likely to see a few aid officials sitting in business class. According to the World Bank, premium class — either first or business — account for nearly 70 percent of air travel by its staff. The premium class share of air travel at the United Nations, the Inter-American Development Bank and ADB is at similar levels. At a time when coach or economy class is as unpleasant and uncomfortable as ever, some aid officials assert that traveling in business class goes a long way toward getting them to their destinations well-rested and ready to hit the ground running. Business class also typically provides a better opportunity to work in flight as well as access to lounges designed for business travelers. “Not being able to rest, spread one’s legs for 10 hours is definitely a limiting factor in terms of performance upon arrival,” said Alpha Diallo, an officer at the United Nations Office for Project Services. Others contend that if development agencies are to attract and retain the best and brightest talent, perks and benefits like business class travel help compensate for the lower pay relative to the private sector. Despite a dip in demand following the global financial crisis, business class travel remains common practice in the private sector, especially for higher-level officers in larger companies. Amid pressure to cut costs in an industry largely funded by public money, aid agencies are increasingly hard-pressed to make the case to shareholders, contributors and other constituents that business class travel for staff is worth the cost. It can also be difficult to rationalize the expense in a sector that commonly references mantras such as “value for money.” The Obama administration, for instance, has publicly rebuked U.N. staff in New York and Geneva for recently spending nearly three-quarters of their air travel budget on business class fare. “U.N. employees, unless there are extenuating circumstances, do not need to fly business class to Vienna or Brindisi, nor do the family members who accompany them on home leave trips,” Joseph M. Torsella, the U.S. Representative for U.N. Management and Reform, said in a March speech. This year’s findings from the World Bank which call attention to the climate impact of business class travel have further bolstered the case for development officials to fly at the back of the plane. The report from the bank’s development research group estimates that a business class seat has three times the carbon footprint of economy. “Individual actions like not traveling or even traveling economy send small but important signals to the outside world about the need to mitigate the climate impacts of our work,” said Alexander Kasterine, head of the Trade and Environment Program at the International Trade Center, a joint agency of the United Nations and the World Trade Organization. Tightening restrictions Prompted by growing scrutiny of their travel practices, major aid agencies are in the process of imposing or tightening restrictions on business class travel for their staff. Devex has learned that at ADB, staff will have to fly economy class for flights shorter than four hours beginning Jan. 1, 2014. Earlier this year, after a concerted push by the United States, the United Nations increased the minimum flight time required for business class from nine hours to 11 hours for multileg journeys. U.N. staff will remain entitled to business class for single-leg journeys of nine hours or more. Meanwhile, many of the World Bank’s units have recently required staff to fly economy class for shorter international trips, according to David Theis, the bank’s media chief. Bank staff must also fly coach for all domestic travel. Theis suggested that the World Bank’s ongoing expenditure review — which is designed to find cost savings of $400 million over the next three years — could result in further restrictions on business class travel. For years, many other aid agencies have imposed minimum flight times for business class travel. Both EuropeAid and the German technical cooperation agency, GIZ, require staff to fly economy class for flights shorter than four hours. According to an official document from April 2013, the Australian aid program authorizes business class travel for international nonstop flights of two hours or more. Under U.S. government regulations, the U.S. Agency for International Development only permits staff to fly business class when the flight time exceeds 14 hours — the most restrictive policy among the major aid agencies. Back in 2004, allegations that USAID officials had improperly received business class upgrades prompted the agency to remove seniority-based exceptions to the 14-hour minimum flight time. Changing a culture While the debate over business class travel for development officials is not necessarily new, it continues to stir passions among development practitioners, many of whom claim it’s time to cut down on the practice. Devex members recently weighed in on the issue in a spirited discussion on LinkedIn. Some implementers expressed that if they can make do with the cramped seats and limited legroom in coach, development officials should be expected to do the same. “I have worked in the international development field for over 25 years, mainly for NGOs, or now in a small consulting company that works mainly with NGOs — and I have always flown economy,” said Michael Drinkwater, senior partner at Wayfair Associates. The new restrictions on business class travel for staff at World Bank and ADB could eventually trickle down to their implementing partners. At USAID, the 14-hour minimum flight time for business class travel applies to both staff and consultants. Others point out that for some of the major aid agencies, changing the mindset will be as important as changing the rules for business class travel. Current and former officials at the World Bank, ADB and United Nations say that there is simply a culture of flying in the front cabin that will be difficult to change. “I systematically asked the travel office to downgrade my flights to economy … At the time, I was told that I was the only person in the entire NY office — and we are talking hundreds of people — who ever asked to be downgraded to economy,” lamented Massimo Lowicki-Zucca, a former program specialist with UNICEF. Matthew Bohn, a country director with the Millennium Challenge Corp., believes that development officials should fly at the back of the plane if only to send the right message to partner countries about how they should be spending their aid money. Bohn recounted a particularly instructive experience from an earlier stint in Central America. “We were at the airport and the minister of finance happened to be on the same flight and he noticed us all getting on and going back to economy. And he changed his seat and went back to economy,” Bohn said. “We served as an example,” Bohn emphasized. “The finance minister was very embarrassed.” Do you believe business class is ever justified for development officials? What are your development organization’s policies for business class travel? Share your thoughts and insights with the Devex community by leaving a comment below.