1. XYZ BROADCASTING BUSINESS
Florida Institute of Technology
College of Aeronautics
Corporate Aviation Operations and Management
XYZ Broadcasting Business Aircraft Proposal
Submitted to : Dr. Isaac Silver
Student Name : Abdulkadir Guncu
Student Mail : email@example.com
2. EXECUTIVE SUMMARY
• Report has been prepared as per given information and company needs to minimize disadvantage of
high frequency and long traveling time.
• Increased productivity of top managers of XYZ Broadcasting and other key staff members is the major
benefit claimed by business aviation users, due to the fact that companies utilizing general aviation
aircraft for business purposes can control virtually all aspects of their travel plans.
• Benefit of Business aviation allows for efficient, flexible, safe, secure and cost-effective access to
destinations across the country and around the potential target.
• Business aviation is the best or only transportation option available, opening the door to global
commerce for small-community and rural populations.
• How to improve cost decreasing hotel rooms, rental cars, meals and other expenses that would be
needed to make the same trip over several days via auto, train or airline transport.
• Business aircraft allow your company to make a trip involving stops at several locations, then return
to Headquarter Nashville, TN the same day. Hundreds or thousand s of dollars can be saved on.
Especially on technical purpose trips.
• Information included why XYZ Broadcasting needs business aircraft.
• Decreasing technical purpose travel hustle (finding last minute flight or unexpected last minutes
3. PROPOSAL INTRODUCTION
• Recommendations to improve the situation are made for selecting right aircrafts and method of
• Common issues questions answered: What are our on-demand air transportations needs?
• Report and recommendation included; corporate aircraft can be used for personal purpose including
with FAA rules and regulations.
• While using your corporate aircraft:
• Increase revenues
• Increase earning growth
• Improve assets efficiency
• Increase customer satisfaction
• Increase employee satisfaction
• Increases management team efficiency
Note: This report does not show any solution and way how to save money for your company’s travel cost.
But, provide helpful information and recommendation to increase your productivity, efficiency, mitigating
travel time, satisfying your customer and employees for XYZ Broadcasting while using your own aircraft.
4. BUSINESS AVIATION
• In 2011, of the S&P 500 companies, business aviation users represented 84% by number and accounted for 96% of total
• 74% of the companies added to the S&P 500 companies between 2007-2011 currently use business aviation.
• A significant number of S&P 500 companies dropped from the S&P 500 from 2007-2011 are non-users of business aviation
• Among the “50 Most Innovative Companies,” a compilation produced by BusinessWeek, 30 S&P 500 companies made the
list. Of these, 100 percent were business aircraft users.
• Among the “100 Best Places to Work,” a compilation produced by Fortune, 32 S&P 500 companies made the list. Of these,
91 percent were business aircraft users.
• Among the “25 Best Customer Service Corporations,” a compilation produced by BusinessWeek, 8 S&P 500 companies made
the list. Of these, 100 percent were business aircraft users.
• Among the “100 Best Brands,” a compilation produced by BusinessWeek, 48 S&P 500 companies made the list. Of these, 96
percent were business aircraft users.
• Among the “50 Most Admired” companies, a compilation produced by Fortune, 43 S&P 500 companies made the list. Of
these, 95 percent were business aircraft users.
• Finally, among the “100 Best Corporate Citizens,” a compilation produced by The CRO, 98 S&P companies made the list. Of
these, 94 percent were business aircraft users.
5. WHAT ARE THE BENEFITS DERIVED FROM BUSINESS
AIRCRAFT USE FOR XYZ BROADCASTING?
• Employee timesaving
• Improved productivity
• Improved customer retention or capture
• Product and production cycle improvement
• Employee safety and security
• Risk management
• Direct travel expense savings
• Increased personnel retention
• Minimize nonbusiness hours away from home
• Charter revenues
• Personnel usage or private usage
*Detail information is provided upon request
General FAA Rules Basic Information
• Aircraft operations classified by FAR Part
• – Part 91 – private operations
• – Part 135 – charter operations
• – Part 121 – airline operations
6. WHY XYZ BROADCASTING NEEDS
• Key Employee Travel
• Customer Visit
• Management Team Travel
• Transporting Your Customer
• International Trips
• Technical Trip
• Marketing and Sales
• Personal Travel
• Charter Services Flight
• Intangible Benefits
ANALYZING XYZ BROADCASTING NEEDS
• A historical, current view of your travel and futureexpectations
Most popular destinations
• Trip frequencies increasing
• Level of personal travelling
• Cost per trip
• Extra days and night on trip
• Lengthy travel days
• Poor airlines connection and waste time during flight connections and cancelations
• Lost productivity due to additional hours on road
• Intangibles issues - fatigue, security, frustration, airport hassles
• Future expectations
• Company growing
7. What is XYZ Broadcasting Important Expectation
From Business Airplane and Current Issues?
• Travel a lot for business purpose such marketing, sales and technical reason.
• Travel long and short distance.
• Trips length from 1 day to 7 days.
• Trips distance short distance to international distance. It starts from Nashville, TN to Syracuse, NY,
Utica, NY, Lubbock, TX, Jackson, MS, Little Rock, AK and Joplin, MO. Also Alaska, Vancouver Canada.
• Third investor lives in Bermuda and frequently travels Boston, MA, San Francisco, CA and Western
• Future stations mean future destinations Nevada, Utah, Wyoming
• Travel with seven (7) member of family and Travel with customer.
• Personal travel might be with family to Las Vegas and other domestic destinations.
• Marketing and sales trip planned in advance
• Technical issues trips always last minutes.
• Aircraft must be ready always whenever needed.
• Company growing future expectations and target place South America and Europe.
• Cruise speed is very important to save time for technical purpose travel.
• Travel cost last year $650.000 and this year minimum $1.200.000 estimated cost.
• Budget to buy aircraft $4-5 million and financial loans is an option.
• Distance Chart Analyze
• Destinations Analyze
• 17 destination less than 1000 nm average distance 560 nm = 31% of Air traffic
• 18 destination between 1000 - 2000 nm average distance 1285 nm = 34% of Air traffic
• 14 destination between 2000 - 3000 nm average distance 2750 nm = 24% of Air traffic
• 5 destination more than 3000 nm average distance 3200 nm = 11% of Air traffic
• Total average by destination number 1355 nm
• Total average by destination distance number 1940 nm
• In this condition plane one-shot distance must be minimum 1490 nm (advise minimum 2000)
nm due to diverting to other airports under some circumstances such as bad weather.
• Family members travel 7 or 8 people
• Customers travel with you
• Technical reason travels mostly short less than 2000 nm
• Cruise speed is important for your request
• Sometimes manager and technical travel opposite distance
9. Analysing (cont)
• Aircraft Suggestions
• Why Two Business Jets Recommended?
• Why Cessna Citation Series
• Purchase or Lease the aircrafts?
10. FLIGHT DEPARTMENT RECOMMENDATION
• In-House Flight Department
• In-House Flight Department Organization Recommendation
• Basic Information Flight Department Staff Roles And Responsibilities
• Good Choice Management Company
• Agreement With Flight Management Company
11. COST ANALYSIS REPORT
• General Cost Calculation (Annual)
Cost Calculation Per Trip (with variable/direct cost)
• Cost Calculation Per Trip (All cost included Fixed & Variables)
• Five Years Cost Of Ownership with depreciation (no sales/use taxes)
• FIVE YEARS RECOMMENDED MID-RANGE PLAN I
• FIVE YEARS RECOMMENDED MID-RANGE PLAN II