General Aviation Value Analysis
General Aviation Value Analysis
The objective of this paper is to determine which transportation techniques will be cost effective for Build Delta Air. The paper employs General Aviation Value Analysis (GAVAA) to compare and access the cost and benefits associated with travelling by business aircraft, commercial airline, and automobile. The paper compares the three means of transportation, and recommends most the cost effective for Build Delta Air . (General Aviation Value Analysis).
Comparison of the three means of transportation requires critical analysis of business aircraft, commercial airline, and automobile before recommending the most cost effective means of transportation for Build Delta Air. 1. 1:Analysis of business aircraft, commercial airline, and automobile using GAVAA The GAVAA is employed to analyse business aircraft, commercial airline, and automobile in order to recommend a cost effective means of transportation for Build Delta Air.
The GAVAA is used to compare the costs of using commercial air versus business or automobile for travelling. To compare the costs of using any of the three modes of transportation, the paper compares three different transportation methods using short-range flight, medium-range flight and long-range flight. To compare the range flights for business aircraft and airline for small range flight, medium range flight and long-range flight, the paper uses the data from GAAVA attachment. From the data, the time taken to move from office to airport is 0.
30 hours, while time taking for terminal boarding is 1 hour. According to FareCompare (2010), the time taking for time round trip of short-range flight from Atlanta to Charleston is 2hr 18 minutes by Delta airline. To calculate the short-range flights of airline from Atlanta to Charleston for round trip. Based on the findings, it is revealed that the productive credits for commercial airline increases with the distance travelled. From table 1, when the distance travelled is for Short Time Range, the productive credit is $981. 00.
Compare to productive credit of business aircraft, which is $1226. 25, and for the automobile, which is $3776. 06. However, with increase in the distance covered the productive credit also increases. For example, medium time range for airline is $1863. 00, where that of business aircraft is $2328, 75, and for automobile increases by up to $9138. 9. The same thing happens for long time range for airline, business aircraft and automobile. When comparing airline and business aircraft in term of productive credits, business aircraft is advantageous than airline.
Although, it may look that automobile has more productive credit advantages in the short time, medium time and long ranges. It is essential to realise that the automobile has time disadvantages. It takes very longer time to reach the destinations compared to travelling by airline and business aircraft. 3: Discussions Based on the findings, it is recommended that Build Delta Air should not buy a biz aircraft at this time based on the higher costs revealed for using business aircraft. Typically, the company will not enjoy cost reduction by buying business aircraft.
Although, business aircraft has advantages of costs reduction as there is increase in the mileage covered, and thus, however with the cost comparison it is not advantageous to buy business aircraft. The paper recommends that the airline is more advantageous than business aircraft and the company should use airline for short-range flight, medium range flight and long-range flight. References FareCompare,(2010). Cheap Flights from Atlanta to Charleston – ATL to CHS. USA General Aviation Value Analysis. (nd) GAAVA Attachme