Summary

Ina general Aviation analysis, a researcher is supposed to establishwhich mode of transportation is the most economical and efficient.The researcher has an option of three modes of transportation, theuse of a motor vehicle or also the automotive, commercial airline andthe use of a private jet. In the analysis, several assumptions havebeen made in order to come up with a conclusion about the threeoptions. In this essay, the researcher will first discuss theautomotive option, the commercial option and finally the private jetoption. The trips are meant for six colleagues who work for the samecompany. The first trip is a short trip involving a journey from SanFrancisco, California to Salt Lake City, Utah. The other trip islonger and involves a journey from San Francisco, California toMiami, Florida. Both trips are required to cover a round trip to andfrom the business meeting locations and back to San Francisco,California. An analysis of the costs shows that the commercialaircraft is the cheapest means of transportation among the threeoptions bearing in mind the amount of time lost in boarding, goingthrough security, hiring a rental car and collecting the luggage. Byfar, commercial airplanes offered value for the costs incurred andwas therefore considered to be the most efficient and economical modeof transportation.

Accordingto the cost analysis, the study reveals that the cost of travel on around trip from San Francisco to Salt Lake City, Utah for oneemployee is $ 4,304.50 for the automotive. However, severalassumptions have been made. First, the cost of one mile for thejourney was $ 0.55 per mile. The distance from San Francisco to SaltLake City is 745 miles and therefore the cost of the round trip wouldamount to $ 819.50 since the total distance would be 1490 miles. Eachof the workers is required to rent a vehicle for at least four daysduring the business trip and this would bring the cost for the carrental to $ 220, the rental costs $55 per day. The employees are alsorequired to stay at a hotel for at least three nights and the cost ofa room would be $ 175 per night. The total cost of stay would be $525 for one employee. The employees also need to be paid during thebusiness trip as it forms a normal part of their employment duties.The per diem rates for the 4 days stand at $ 65 per day, bringing thetotal cost to $ 260. Finally, the employees are also entitled to a3.5 day salary for a 31 hour working day which would cost the company$ 2480, the labor rate is $ 80 per hour. The total cost for anindividual employee for the short business trip would be $ 4,304.50.Therefore, for the six employees, the company would require $ 25,827for the automotive option.

Inregards to the commercial airlines mode of transportation, thefollowing costs would be involved in the short round trip for oneemployee. An air ticket which costs $ 82 would be required but sinceit is a round trip, it would cost $ 168. The employees would need twonights of stay at a hotel at a cost of $ 175 per night bring thetotal to $ 350. Other expenses would cost the Company, $ 195 over the3 days. He employees who are entitled to a salary would require awage of $ 80 per day, which would cost the Company $ 1440. Airportparking fees for the three days would cost $ 60 while additionalexpenses for travel from the office to the airport would cost $ 8.36.This is because the distance between the office and the airport is15.2 miles. The employees would be required to hire a rental car at acost of $ 55 per day for 2 days while it is assumed that the carswould travel for 30 miles and hence cost the Company $ 16.50. Eachemployee would require $ 2,347.86 and since there are six employeesin total the round trip would cost a total of $ 14,087.16 for thecommercial airlines option for the short trip.

Ifthe employees would prefer to use the private jet mode oftransportation the following charges would apply for one employee forthe short round trip. There would be a fixed cost of hiring a jet forthe duration of the four hour flight, $ 9,200. The employees would beentitled to a salary of $ 1,120 for the 14 hours worked over the 3days. In addition, they would also require a night stay at a hotel ata cost of $ 350 and other additional expenses would increase the billby $ 195. Also, the employees would need to pay some parking fees atthe airport, $ 60 as well as other expenses such as rental mileagefor $ 16.50 and rental expenses for 2 days at $ 110. The cost oftaking the private jet option would cost the Company, $ 11, 059.86for each employee bring the total cost to $ 20,359.16.

Inregards to the second business trip which is from San Francisco,California to Miami, Florida, the company who need to take a numberof costs into consideration in order to make a decision among thethree modes of transportation. The three modes of transportationinclude: Automotive, commercial airlines and the use of a privatejet. The same assumptions about the rates have been utilized in orderto come up with the costs of transport however, it is crucial topoint out that the second trip was longer than the first trip. Forinstance by using a vehicle the journey would take almost four timesthe duration of time required and it therefore, this would suggestthat the distance travelled would be more compared to the short trip.

Forthe automotive option, the following costs would be realized peremployee for the long round trip from San Francisco to Miami. Theround trip would cover a distance of 6,052 miles and this would costthe Company $ 3,328.60 for the car rental since each mile costs $0.55. The cost of hiring the vehicle would be $ 495 over the 9 daytrip. The cost of accommodation at a hotel would be $1,400 whileother costs would total to $ 585 over the same period. The employeeswould be entitled to a salary of $ 5,760 for the 9 days and thiswould bring the total cost per employee to $ 11,568.80. Therefore,the automotive option would cost the Company, $ 69,411.60 becausethere are six employees.

Whenit comes to commercial airlines, an employee would incur a number ofcosts. The air tickets cost $144, therefore a round trip would cost $288. A 2 night stay at a hotel and the per diem expenses would be $350 and $ 195 respectively. Airport parking expenses in regards tothe parking, mileage and car hire would cost the Company, $ 60, $16.50 and $ 110. In addition, the office to airport cost wouldtranslate to $ 8.36 for the round trip and not forgetting the salaryof $ 2,160 for each employee. This would bring the total cost to $3,187.60 per employee or $ 19,127.16 for the six employees.

Finally,if the employees would consider going on a round trip from SanFrancisco to Miami on a private jet, the following costs would beincurred. There would be a fixed cost of $39,359 since each milecosts $17.33 and a total of 2,300 miles would be covered. An employeewould be entitled to a salary of $ 2,160 while both hotel stays andper diem expenses would cost the Company $ 350 and $ 195respectively. Airport parking fees would be $ 60 while car rental andother related costs would cost a total of $ 134.86. At the end of theday, the Company would be looking at a cost of $ 42, 758.86 peremployee therefore, the total cost of the entire trip would be $57,258.16.

Theanalysis suggests that there are pros and cons in all the modes oftransportation but when it comes down to costs, the decision amongthe three options is pretty straight forward for both the short andthe long trips. In the short trip, the automobile option would cost $25,827 while the commercial airline option would cost $ 14,087 andthe private jet option would cost the Company, $ 20,359.16. In thelong trip, the story would be the same, as the commercial airlineswould prove to be the cheapest, $ 19, 127.16, the private jet wouldcost $ 57,278.16 while the automotive would come in last at $69,411.60. Therefore, the commercial airlines mode of transportationwould be recommended for both the short trip and long trip journeysfor the six employees.