You will conduct a General Aviation Value Analysis to determine which mode of transportation is most efficient and economical for 2-6 colleagues to travel to attend a business meeting. The intent is to assess the value of using a business aircraft vice commercial aircraft, car, train, etc. You may either use the clearly detailed parameters listed below, or you can use figures specific to your work place, but you must specify the parameters used in your full report. Your GAVA should include the parameters applied, the analysis itself, and your findings. You may use the expense chart template attached below to assist in calculations or create your own.
You and 1-5 colleagues are scheduled to make two trips, one a short trip (approximately 400-800 flight miles, each way), the other a longer trip (800-2,500 flight miles, each way). Assuming the variables listed below, plot two trips for 2-6 colleagues, to determine whether automobile and/or train and/or bus, business aircraft, or commercial transportation is most economical.
When writing your summation, consider what other direct and indirect variables should be considered when determining which mode is “best”: for example, convenience of scheduling, ability to work during travel, etc.
Parameters to consider
Parameters to consider:
• Auto: Assume $.50/mile when driving both trips.
– Each of you will also be driving your personally owned vehicle (POV) from Office to Airport and Airport to Office.
– When using commercial or business travel, airport parking costs are $3/hour or $20/24 hour period.
– Use Google Maps or other online mapping tool as needed.
• Business Aircraft: Either select a business aircraft and use the average cruise speed and hourly operating costs to determine time and expense, or assume $1,300.00/hour operating costs and an average cruise speed of 300 mph.
– Enroute time depends on the route you select. Assume cruise speed of 300 mph.
– Calculate time (per person) for colleagues to get from Office to Airport where business aircraft is parked (may not be the major airport).
– Assume 15 minutes for boarding, 15 minutes for deplaning, 15 minutes to collect rental car. These are per person times.
• Commercial Aircraft: For commercial aircraft, follow guidelines for the carrier and route selected. You are not required to use the same carrier you selected for this course, but it would be beneficial.
– Assume 90 minutes per person for check-in, security, and boarding.
– Allow 60 minutes per person to deplane, collect luggage and obtain rental car.
– Assume 30 minutes from Office to Airport, each way.
• Personnel: Assume your time costs $80/hour/person up to 9 hours per day for salaried employees.
– Also, consider whether you can work on a commercial plane (coach), business aircraft, or in an automobile.
– Per Diem (daily food expense allotment): $65/day/person.
– Meeting: 8 hours (plan on a Tuesday 0900-1800). Will you need hotel rooms? If so, factor in $175.00 per person, per night.
– Rental car: Required for trips in commercial or business aircraft and by train. Assume $55/day and $35 for half days or less.
