General Aviation Aircraft Value Analysis – Trains, Planes, and Automobiles

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8 hours Round trip, Embarking/Disembarking, Travel time to and from the airport and Car rental.

- This would cost the company $7,200 in wages for four employees, per 2 days. (2 days of Salary per employee is $1,800 x 4 employees= $7,200)

- Airfare = $708/ 4 employees (Spirit Air, 2016)

- Per Diem $65/person/day for 2 days = $260

- (Parking $20x4 cars for 2 days = $240)

- (Car Rental $65/day x 2 days= $130)

Total = $8,538

In this case the short flight and relative small cost in time and money gives the best value. In addition, there can be additional reduction in fair cost due to frequent flier and corporate discounts for rental cars thru the airline.

- Long Business Trip from New York City, NY to Oklahoma City, OK

On the long business trip the four employees have an overnight stay due to a schedule restriction. With that additional cost we see that the increase in time still had the employees on time and rested for the meeting the next day. As above the cost are the same:

20 hours’ round trip to/from office and boarding, Embarking/Disembarking, Travel time to and from the airport, and Car rental.

- This would cost the company $10,800 in wages per four employees, per three days. (3 days of Salary per employee is $2,700 x 4 employees= $10,800)

- Airfare (American Airlines, 2016) = $405 per employee.

- Per Diem $65/person/day for 3 days = $780

- (Parking $20 x 4 cars for 3 days = $240)

- Car Rental $65/day

- (4 Rooms $115/night x 3 nights = $1,380)

Total = $13,670

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Using Business Aircraft Charter/ Short Business Trip from New York City, NY to Oklahoma City, OK

In using a light business jet or air charter, provides the employees the best in time flexibility and an opportunity to collaborate in preparation for the meeting and get back in time for dinner. Now initially the cost may seem excessive but in the sort and long run the value is seen in time and all around productivity without the hang ups of terminal security or additional savings can be had if there is a “pickup” or “drop off’ if the flexibility of the schedule permits. Pricing varies between each company, but for the sake of best value value in New York City Area. Air Fleet Charter company operating out of Teterboro airport in New Jersey a fifteen minutes’ drive form New York city presents the best value for this trip. The equipment being used is BE100 that can fly at 265 mph (Air Fleet, 2016) making this trip around two hours and ten minutes’ flight with an operating cost of $1389 per hour. (Sky Vector, 2016)

6 Hours hours’ round trip including the drive to and from office, car rental picks up and unexpected traffic.

- 1 day of Salary for 4 employees $3,600 = $3,600

- Aircraft Operation $1,389/hr. x 4.2 hrs.= $5,833.80

- Per Diem $65/person/day for 1 day = $260

- Parking Free on the GA side for less than 48 hours

- Car Rental $65

Total = $9,758.80

- Long Business Trip from New York City, NY to Oklahoma City, OK

For the long distance NetJets company provide an affordable pricing for such trip. Using a Cessna Citation II with a range of 1540 Nautical Miles and Cruising Altitude of 42,000 feet (NetJets, 2016). With that the same assumptions will be used from the New York to Oklahoma City trip for pricing and the air chart used for time and distance (Sky Vector, 2016):

10 Hours hours’ round trip including the drive to and from office, car rental picks up and unexpected traffic

- 1 day of Salary @ $3,600 = $3,600

- Aircraft Operation $1,688/hr. x 7 hrs.= $11,816 Round trip

- Per Diem $65/person/day for 1 day = $260

- Parking Free on the GA side for less than 48 hours

- Car Rental $65

Total = $11,045

For the long business trip an overnight stay is not required. This trip costs do not increase too much from the short trip. In addition, both scenarios do not reflect any type of fuel charges or airport fees associated with the down time of the aircraft for 6 to 8 hours.

Conclusion

From a glance and based on the information provided by the course syllabus, one can see that the more people who are going to a meeting and the farther away it is (i.e. the longer it takes to get there), the more viable option is the business aircraft (verses driving a POV, taking the train, or flying commercially). With this analysis the numbers are not the only considerations in this. Time and wellbeing of the employees going to this meeting, the hidden cost of bad judgments due to fatigue that leads to a greater risk of failure if a lot of money and the company’s business is at stake. If the employee fatigued from a long car ride it’s a penny wise pound foolish. The total cost shown for both trips show that peripheral costs go up as the distance and time.

Being able to work on the train, and while flying, would definitely give these three modes of transportation a leg-up on driving a POV too, but one could argue that not a lot of quality work would actually be accomplished while traveling via any mode of transportation. Cell phone reception would be best while traveling via train (which would enable internet usage if the employee had a data plan and cell phone plan which allowed roaming). Cell phones and internet are usually unavailable while flying (unless at really low altitudes), but work could still be accomplished on a laptop (i.e. completing spreadsheets, flow charts, meeting minutes, etc.). However, the train travel is a large waste of time and somehow inefficient to get to a one-day meeting.

Commercial air travel to short and