Marketing Assignment: Corporate Aviation Business Proposal

Corporate Aviation Business Proposal
Name
Institution of affiliation
Date
Corporate Aviation Business Proposal
Executive Summary
The world is increasingly becoming interconnected as the global order tends to pan out towards globalization. As such. Businesses especially in the corporate sector meet new challenges and opportunities due to this. The opportunities consist of new markets and new sources of inputs such as raw materials and creative talent. Modern businesses must prepare effectively to be able to tap these new resources and thus ensure the sustainability of their business practices. As the business’ area of influence becomes larger, it is essential that the company remains capable of exerting its control and influence in this area CITATION The11 \l 1033 (The Globalisation of Firms as Social Systems, 2011).
This company has over the recent years experienced tremendous growth. Our area of influence includes the whole of Lynchburg and the surrounding environs. If this trend continues unabated, the company will have an even larger sphere of influence with regard to its business activities. This is likely noting the stability of the global economy and the expected growth of our clients' business which creates greater demand for our services CITATION Can \l 1033 (Cannon and Richey). In determining the necessity for a corporate aviation division for the firm, it is necessary to interrogate the facts. The firm employs 300 workers, including sales and engineering staff. The sales staff averages thirty 2–3-day trips a year, with 3–5 employees on each trip. Most of the sales trips are within a 400-mile radius of Lynchburg. The engineering staff is involved in site inspection and pop-up troubleshooting trips. The engineer trips range from a day to 3 weeks, within the same 400-mile radius. Usually, two engineers go on these trips about ten times a year. The company is currently spending $180,000 a year on travel expenses. The firm in attempting to determine the best alternative must weigh them. However, monetary considerations should not be the only factor. The firm should consider the safety, comfort and even the optimum number of employees that should travel in making its decision.
Benefits of Corporate Aviation
Corporate aviation provides an efficient means of transporting employees across the nation and in some instances globally. Corporate aviation greatly reduces the firm's dependence on commercial planes. The firm's employees can make their plans with the understanding that they can travel when they need to at their convenience. Corporate aviation further allows employees to carry out meetings as they travel. This enhances productivity and ensures the employees deliver greater value to clients which ultimately benefits the firm.
Corporate aviation provides its users with a heightened level of comfort. The plane can be customized to fit the exact needs of its users. Employees utilizing it can, therefore, enjoy the experience of traveling rather than simply accommodate it. Corporate aviation will also save the firm money. Employees can travel to meetings with clients and return home on the same day. The firm would, therefore, save money that would have otherwise been spent on hotel rooms and daily allowances.
Corporate aviation allows the users to save on time. Employees can travel directly to the client’s desired location. However, with public transportation, time would have been lost in linking different planes then subsequently with trains and cabs. The time element would further have an impact on employee morale and the client’s patience. Corporate aviation also allows teams to travel on short notice or as the business may demand. This would be impossible with commercial transportation where bookings are required. Corporate aviation ultimately makes businesses more competitive by allowing executives and employees to leverage limited resources in an effective manner. This ultimately results in the business growing exponentially.
Current Travel Needs
The firm currently spends $180,000 on travel per year. The sales staff averages thirty 2–3-day trips a year, with 3–5 employees on each trip. Most of the sales trips are within a 400-mile radius of Lynchburg. The engineering staff is involved in site inspection and pop-up troubleshooting trips. The engineer trips range from a day to 3 weeks, within the same 400-mile radius. Usually, two engineers go on these trips about ten times a year.
Future Travel Needs
The firm is experiencing exponential growth. As such, its activities are increasing as demand increases. Projections for the firms are a 17% growth year on year for the next five years. This growth must be coupled with growth in its core resources so as to support the expected growth. The firm will have to hire new employees' e.g. sales representatives and engineers. This will result in greater travel to meet clients and for site inspections. In 5 years the sales team will average 55 trips a year with between 5-8 employees per trip. This is due to the increasing complexity of the assignments. The average number of days will, however, decrease to 1-2 days while the engineering trip should remain constant . However, there will be an increase in the number of engineers to 4 per trip, 15 times a year.
Aircraft
A good aircraft for the firm should be able to meet the firm’s needs. The Pilatus PC-24 achieves this and much more. The plane is a twin-engine business jet currently under development by Pilatus Aircraft of Switzerland. It is expected to hit the markets by mid-2017. The plane can seat a maximum of 10 passengers and has two crew. Its general specifications include;
* Length: 16.8 m (55 ft 1 in)
* Wingspan: 17.0 m (55 ft 9 in)
* Height: 5.3 m (17 ft 5 in)
* Empty weight: 4,967 kg (10,950 lb)
* Max takeoff weight: 8,006 kg (17,650 lb)
* Fuel capacity: 888.5 US gal (3,363 L)
Its performance characteristics include;
* Cruise speed: 787 km/h; 489 mph (425 kn)
* Range: 3,610 km; 1,949 nmi (2,243 mi)
* Service ceiling: 13,716 m (45,000 ft) single engine ceiling 7,925 m (26,000 ft)
* Rate of climb: 20.70 m/s (4,075[41] ft/min)
* Take-off distance: 2,690 ft (820 m)
* Landing distance: 2,525 ft (770 m)
* Cabin altitude: 8,000ft at 45,000ft
The Pilatus PC-24
Characteristics that make that aircraft an ideal choice
The Pilatus PC-24 is suitable due for the firm due to its ability to use short runways and ruggedness. The plane would, therefore, be able to land and takeoffs in most airstrips within Lynchburg. The plane would also use jet propulsion from the Williams FJ44 twin engines CITATION Wil13 \l 1033 (Williams International , 2013). The engines would increase the plane’s range and improve fuel consumption efficiency.
William FJ44 Engine
The plane also utilizes the Advanced Cockpit Environment which supports the pilot in navigation and reduces the workload for the pilot. The interior of the plane will be designed by BMW Designworks which will ensure the work is top notch CITATION Kat15 \l 1033 (Sarsfield, 2015).
Advanced Cockpit Environment
Acquisition cost of aircraft
The plane is expected to cost $9 million. This cost will be inclusive of pilot and crew training. As a testament to the plane virility, the first phase of production has already been fully booked. To access the plane, the firm would need to buy out a client that had ordered its plane. This would require the firm to reimburse that company the $250,000 deposit it had paid the plane’s manu...