General Aviation Value Analysis

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GeneralAviation Value Analysis

Number of person

1

2

3

4

5

6

Private Jet Cost (Fixed)

$39,859.00

$39,859.00

$39,859.00

$39,859.00

$39,859.00

$39,859.00

Salary (3 days 27 hours)

$ 2,160.00

$ 4,320.00

$ 6,480.00

$ 8,640.00

$10,800.00

$12,960.00

Hotel (2 nights)

$ 350.00

$ 700.00

$ 1,050.00

$ 1,400.00

$ 1,750.00

$ 2,100.00

Per Diem (3 days)

$ 195.00

$ 390.00

$ 585.00

$ 780.00

$ 975.00

$ 1,170.00

Airport Parking (3 days)

$ 60.00

$ 120.00

$ 180.00

$ 240.00

$ 300.00

$ 360.00

Cost (Office &lt-&gt Airport 15.2 mile)

$ 8.36

$ 16.72

$ 25.08

$ 33.44

$ 41.80

$ 50.16

Rental Car Cost (2 Days)

$ 110.00

$ 220.00

$ 330.00

$ 440.00

$ 550.00

$ 660.00

Rental Car Cost/mile (meeting assume 30 miles total)

$ 16.50

$ 33.00

$ 49.50

$ 66.00

$ 82.50

$ 99.00

Total Cost

$42,758.86

$45,658.72

$48,558.58

$51,458.44

$54,358.30

$57,258.16

Table1. Thistable shows the first route from San Francisco, CA to Salt Lake City,UT.

GRAPH

/LINE(MULTIPLE)=MEAN(Privatejet) MEAN(hotel) MEAN(airportparkingMEAN(officeairport) MEAN(rentalcar) MEAN(rentpermile) BYtotal/MISSING=LISTWISE.

Fortrips from San Francisco, Salt Lake City CA to UT, my analysis ofdifferent forms of transportation, shows that as the distanceincreases, the commercial aircraft becomes more and more expensivebut time effective. Similarly, the bicycle becomes the leastexpensive, but the time it will take to arrive at meeting place ismuch longer. This consequently makes the commercial aircraft muchbetter mode of transportation for business travel or business trips.

&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbspIanalyzed seven methods of transportation: Business aircraft,commercial aircraft, automobile, bicycle, motorcycle, train and MetroTrans. My analysis followed the recommended guidelines for thisassignment, with some exceptions. I assumed that employees couldcouple up to four occupants per vehicle when another vehicle wouldhave only one occupant. For the general aviation aircraft, I assumeda four-seat aircraft would cruise at a speed of 300 mph at anoperating cost of $1709.40 per hour. I also assumed that work couldbe done during travel on all methods of transport except for driving,cycling and riding motorcycles.

Myanalysis also showed that for the shorter distance, San Francisco,Salt Lake City, CA to UT, the automobile would be the most preferredmode of transportation as covers the distance at about 23hours. Thisassumes that one or all employees in the trip have a driver’slicense. If this is not the case, it would be preferable to take acommercial craft, but this would have limitations as if it carriesmore than seven passengers they will have to ensure it has its fullcapacity so as to reduce the cost of the commercial aircraft.

Number of person

1

2

3

4

5

6

Private Jet Cost (Fixed)

$ 9,200.00

$ 9,200.00

$ 9,200.00

$ 9,200.00

$ 9,200.00

$ 9,200.00

Salary (3 days 14 hours)

$ 1,120.00

$ 2,240.00

$ 3,360.00

$ 4,480.00

$ 5,600.00

$ 6,720.00

Hotel (2 nights)

$ 350.00

$ 700.00

$ 1,050.00

$ 1,400.00

$ 1,750.00

$ 2,100.00

Per Diem (3 days)

$ 195.00

$ 390.00

$ 585.00

$ 780.00

$ 975.00

$ 1,170.00

Airport Parking (3 days)

$ 60.00

$ 120.00

$ 180.00

$ 240.00

$ 300.00

$ 360.00

Cost (Office &lt-&gt Airport 15.2 mile)

$ 8.36

$ 16.72

$ 25.08

$ 33.44

$ 41.80

$ 50.16

Rental Car Cost (2 Days)

$ 110.00

$ 220.00

$ 330.00

$ 440.00

$ 550.00

$ 660.00

Rental Car Cost/mile (meeting assume 30 miles total)

$ 16.50

$ 33.00

$ 49.50

$ 66.00

$ 82.50

$99.00

Total Cost

$11,059.86

$12,919.72

$14,779.58

$16,639.44

$18,499.30

$20,359.16

Table2.This table shows the second and longer route, San Francisco,CA-Miami, FL.

Forsome instances, the automobile shows that it is much more effectivefor both short and longer distances when put into consideration. Thelong driving hours and inadequate time to sleep while traveling byautomobile make the commercial aircraft much better method oftransportation. There are other instances where private businessaircraft or rather business craft is the most preferred. This iswhere there is a very limited time for traveling and the urgency ofthe business trip. This consequently comes with a price as thebusiness people have to squeeze their time and pay more for the samejourney. This applies for both short route and long distance trips.

Myanalysis shows that while taking the time lost for working intoconsideration, automobile driving is the most expensive method ofbusiness trip transportation. More time will be lost while driving,which significantly won’t be recovered anywhere in the trip.Private business craft is the most expensive method but somewhat themost appealing, especially at a shorter distance and more employeeson the trip. This is significantly appealing because as the businesstravel is in progress, the employees will still be working though ata significantly lower pace due to inconveniences caused by factorssuch as network loss and traveling distractors, for example, nature.Putting commercial aircraft on the analysis, we realized that, withfewer employees or workers on board it is significantly a cheapermode of transportation. This is brought by working time that is lostin the trip is minimal especially at shorter distances. On longerdistances with fewer workers on board, the cost of traveling isgenerally low, and if we take the working time lost into perspective,we realize that a good proportion of time is lost during the travel.Hence, its only significance, in this case, would be thetransportation cost, but time would be adversely lost. This analysisis based on the individual transportation method. If we decide tocombine all the analysis of the seven methods of transportation, wecan clearly see that commercial aircraft is the low-cost method oftransport putting both working time lost and cost per travel withfewer employees on board while automobile remains the most expensive,especially because much working time is lost, there is very limitedtime to sleep, and the driving distance is very long. Therefore, muchexhaustion is experienced.

Whileit is quite true that traveling on commercial aircraft and privatebusiness aircraft is expensive, especially at lower distances withemployees on board, it is cost effective because it is flexible onand saves a lot of time and exhaustion during the travel. Thissignificantly helps the business because less time is lost or usedineffectively by the travelers. This analysis, on the other hand,shows that one needs to have sufficient time to sleep and relax. Thisis not offered by any of the analyzed methods of transportation,especially via automobile, motorcycle, and bicycle. This is onlyoffered by commercial aircraft or business aircraft.

Businessaircraft as seen in the analysis can provide maximum productivity andefficiency, especially in the business. Similarly, it can provideaccessible flight time because of its availability in real time andexperiences. For employees who have the piloting knowledge,commercial aircraft also provides more piloting time or adequateflying experience this, therefore, increases proficiency in managingand controlling the aircraft at any given period. From the analysis,the use of automobile, motorcycle, and cycling has adverse effectsespecially on, severe accidents, disturbances and traffic jamsespecially on busy roads. Contrary to the automobile business,commercial aircraft provide safety and destruction free travelingenvironment. This, significantly, reduces the risks involved whiletraveling, especially on an important business trip. Businessaircraft as seen in the analysis also provide privacy as the trip isonly made by people who have the interest of the business withthemselves no other interests. The other thing observed is that theemployer is probably going to consult the accounting department inorder to create a cost effective disbursement of any probabletransactions that can be made while on board. This is not adequatelypossible with the automobile because much more time is used tonavigate the automobiles along the roads and through the traffic.

Inconclusion, we finalize that business aircraft or commercial aircraftmay be expensive at a shorter distance, but pretty much convenientbecause of the highlighted benefits. Business and commercial aircraftsolely provide the level of efficiency both in time, accessibility,and reliability. This is visible through the aviation analysis andalso in the study conducted by the analyst.

REFERENCE

DeNeufville, R., Odoni, A. (2013).&nbspAirportsystems: planning, design, and management.McGraw-Hill Professional

Dillman,D. et al. (2009.), Internet,Mail, and Mixed-Mode Surveys: The Tailored DesignMethod.John Wiley &amp Sons

FederalAviation Administration. TerminalArea Forecast Summary: FiscalYears2006-2025 [Online]Available:http://www.faa.gov/about/office_org/headquarters_offices/apl/aviation_forecasts/taf_reports/media/TAF2006-2025 Summary

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