General Aviation Aircraft Value Analysis
A value analysis of four different modes of transportation was conducted to assess which would be the most economical by means of time and expense. Two separate trips were analyzed. The first, a relatively shorter trip of 1200 miles round trip from Detroit Michigan to Nashville Tennessee. The second, a longer trip of 2800 round trip miles from Detroit to Miami Florida.
Three colleagues were used as a baseline for costs for all modes of transportation. The analyzed modes of transportation included car, train, business jet and commercial airline. Also included in the cost analysis were paid company time, per diem, fuel, food stops, hotel and miscellaneous expenses. The standard expenses listed in the assignment instructions were used during the assessment. Estimated costs and schedule for commercial airline tickets, train tickets, were retrieved online.
The commercial airline used for this project was Delta Airlines. Currently, Delta has a major hub in Detroit, and service both the Nashville and Miami airports. Amtrak was the passenger train used for this study. Amtrak services the Metro Detroit area, Miami and Nashville areas as well. Information on rental car prices was provided in the assignment parameters.
The results of this study are outlined below. Two tables have been included to show the various price breakdowns and trip parameters. Also included in this summary are some of the unique trip complexities that can result during the various forms of travel.
Automobile Travel
Automobile travel offers some unique advantages in that it can free of the hassle of dealing with tickets, security checkpoints, and long lines. However, people who choose to travel by car are also a...
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... travel by airplane or train is not free of hassle. Long lines at ticket counters, mechanical delays, and airport security all offer realistic obstacles not involved in car travel.
It is clear in the analysis that for long trips, commercial aviation is by far the best option from an economic standpoint. With a vast route structure and competition from other airlines, the customers can often find some exceptional deals on airfare. However, the shorter the trip becomes, the smaller the margins both financially and in terms of convenience. There is also a point where any means of scheduled travel would not be necessary and a car would be the best option.
Works Cited
Amtrak. (n.d.). Retrieved January 25, 2014, From Amtrak Web site: http://www.amtrak.com/home
Delta Air Lines. (n.d.). Retrieved January 25, 2014, From Delta Air Lines Web site: http://www.delta.com/
The objective of this research report is to provide a thorough analysis of Alaska Airlines. In order to do this we chose to compare a similar company against them. The company in comparison is Spirit Airlines. Both companies compete in the same type of business through airline transportation. Many of their services include; security, safety, transportation of passengers as well as luggage, ensuring vehicle safety while in transit, concierge services, providing entertainment aboard plane, checking weather conditions prior to flight, and much more. All of the data gathered for this report was obtained from the company’s 10-k filings with the SEC.
www.southwest com./about_swa/airborne.html www.southwest.com/about_swa/press/3q00earn.html# Statement of Income www.southwest.com/about_swa/press/3q00earn.html#Operating Statistics www.southwest.com/about_swa/press/3q00earn.html#Balance Sheet www.southwest.com/about swa/aboutswa.html www.southwest.com/about_swa/press/07 1300 new flights.html www.southwest.com/programs_services/factssheet html#Top Ten Airports www.southwest.com/programs_services/mission.html www.southwest.com/about_swa/press/3q00earn.html Strategic Management – David Fred – 7th edition – Brenty’s Hall Notes from the lectures during the semester about the schedule and the way the analysis of the case should be.
The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B. Because the reasons can differ greatly in the motivations for a customer wanting to fly, it can be difficult to divide the market into discrete segments, that is, there is always going to be overlap in the preferences and characteristics of any given segment. With that in mind, the commonalities that are shared between the clientele that make up the respective classes can easily withstand analysis.
As Frontier approached its 10th year of operation, Frontier officials realized an image shift was in order. The airline had established a reputation for friendly and reliable service, and reasonable airfares, mainly appealing to leisure travelers. But they reali...
Frequently claims are made that mass transit can provide various solutions for the economy, the environment, and the energy crisis, in addition to improving the overall quality of life (2). Mass transit provides the following solutions to various economic problems. Firstly, as a result of the recession we now face, unemployment is substantially higher t...
Traveling by plane is safer than driving by car for 3 main reasons: pilots go through intensive training, roads have more traffic than the sky, and there are more car crash fatalities per year than deaths caused by plane crashes.
Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).
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RITA. "National Household Travel Survey." Bureau of Transportation Statistics (BTS). Research and Innovative Technology Administration (RITA), 2002. Web. 21 Apr. 2012. .
Finding ways to move goods from one point to another at a reasonable cost and within an acceptable time frame is a growing challenge for global businesses today. The costs and risks associated with transportation are increasing with the advent of globalization and low-cost-country sourcing. Even for companies with local operations only, they have to supply their products to various parts of a country which increases the costs and risks. Since the cost of gasoline has been on an upward trend, high level of efficiency in transportation is required to lower the costs involved and the risks associated with the costs. Costs concepts in transportation include economic, social and accounting costs. The risks and costs involved increases if the various modes of transport are used. There has been concern over many businesses failure to strategically think when they employ multimodal transportation services. Many businesses prefer the least expensive multimodal model instead of choosing the most effective; this trade-off is very expensive with hidden costs and risks increasing significantly (Molenaar, Anderson, Schexnayder, National Research Council (U.S.)., National Cooperative Highway Research Program., American Association of State Highway and Transportation Officials., & United States, 2010).
...le, including connection. Now, as long as you had the money it was possible to travel to basically any part of the world within a reasonable amount of time, where as before sailing there could take over a month. Nothing else could compare to the speed of a plane, which only increased as the decade went on. Another positive effect of air travel becoming more popular was the start of the credit card industry. In 1936, American Airlines created an Air Travel plan, with which if you put down a $425 deposit, an Air Travel card allowed a “buy now, pay later” system which also gave travellers a 15% discount (Flight). The many improvements that occurred rapidly greatly influenced the future of aviation, as it is now rare to find someone who has never been on a plane. These improvements have made connections to the rest of the world easier, making the world even more united.
Furthermore, the high-speed rail network could mean twenty-nine million fewer car trips and 500,000 fewer plane flights annually, according to a 2006 study ...
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