Executive Jets/Daytona Jets

 Write A Topic sentence outline for the following information: Cessna Citation CJ2+ jets or PC-12NG turboprops for Executive Jets Task – Prepare a report for the President of Executive Jets of Daytona to recommend the appropriate fleet mix and costs of recapitalizing the company’s fleet with Cessna Citation CJ2+s and Pilatus PC-12NGs. – Also, prepare an interim talking paper (topic sentence outline) on your study for review and possible forwarding to the President and EJD’s investors. Operational Requirements – The fleet must serve the three segments of EJD’s current business base. Premium—prioritize time over cost of travel. Core—cost conscious business passengers. Leisure—seldom prioritize time over cost. – Premium segment: 30% of customer base; from companies grossing $51-90M/yr.; concerned about prestige of arrival, comfort, on-board amenities. Willing to pay significant premiums to save time. – Core segment: 50% of base; medium companies grossing between $20-50M per year; sensitive to cost of travel—will pay premium to save significant amount of time [you determine what “significant” means]. – Leisure segment: 20% of base; wealthy but accept longer flights to save money; often bring heavy baggage, such as surf boards and/or scuba tanks. Often charter to remote areas, small airfields. Operational Considerations o For practical purposes, the 50/30/20 spread of travel by the company’s passenger segments is sustained through each of the mission segments discussed below. o Presume that each aircraft can produce 220 days of service each year Market Chart Annual “Aircraft Days” Expended in Support of Missions Characterized by Passenger Loads and Distances 401-600 miles 601-800 miles 800-1200 miles 1201-1800 miles 1801-2200 miles 1-3 passengers 60 100 120 100 100 4-6 passengers 200 200 60 50 50 Required Report Structure Introduction – Purpose of the study and its importance – Fleet structure criteria – Organization of the report Market Requirements – Describe each customer group – Describe the cost, service, and other preferences of each group – Based on customer service and cost sensitivities, project at what point on the “market” chart each group would begin paying the premium to travel on CJs instead of PCs. Market Fit – Assess whether or not the PC can satisfy the service requirements of each customer group. – Assess whether or not the CJ can satisfy the service requirements of each customer group. Operational Concept – Based on customer sensitivities and service desires, expand on the market chart provided to show how many of each type of aircraft EJD expects to utilize to satisfy each of the route segments. For example: 401-600 miles Total PC/CJ 1-3 passengers 50 15/35 4-6 passengers 100 30/70 – Conclude this section by discussing the number of each aircraft the company should expect to acquire to service the total market. Presume that each aircraft will produce no more than 220 days of service per year. Costs – Calculate the cost of operating the projected fleet of aircraft for three years. o Include aircraft acquisitions, crew salaries, and operating costs. o CJII+ operating cost (fuel, maintenance, hangar) $1600 per hour o PC-12NGs operating cost $800 per hour. o Crew salaries $110 per flight hour for captains and $75 per flight hour for first officers. [Note: You’ll need to calculate annual crew costs from the total number of flight hours required to service EJD’s complete route structure.] Recommendation – Restate the purpose, importance, and selection criteria the report. – Summarize the major findings and discuss their implications. – Make a specific recommendation of which aircraft to buy and how many. Topic Sentence Outline should include Introduction Importance Criteria Mission Requirement

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