Business Aviation Management Exam
1|46 Q’s and A’s
How to Calculate Direct Operating Cost - -Total of all Receipts/hours, miles,
passengers
- We all have 3 resources available in pursuit of our goal - -Time, people,
and money
- What does not allow us to maximize our use of the available time? - -
Conforming to an airline schedule, waiting in terminals, and being subjected
to delays
- While many issues can be handled remotely, People still subscribe to
following THREE truisms - -- Deals are made in person
- Individuals like to be courted in person
- People learn more when they can see, touch, and hear in person
- Why Individuals and Companies Use On-Demand Air Transportation - -
Safety, Security, and Confidentiality.
Intangibles
- While the following issues justify on-demand air transportation, they create
a compelling reason for it. - -- Airline travel hassles
- Travel-related stress
- Nights on the road Fatigue
- Transportation Solutions
On-demand air transportation is a method designed to support business
personnel requirements; it is not an end unto itself. - -Air Transportation
Analysis
Companies must conduct a survey to determine existing and anticipated
travel patterns, thereby correctly determining their actual requirements.
- Three aspects of company travel: - -A historical view of airlines and on-
demand travel
Planned and expected travel needs for the future
Solutions for these needs
- Travel History: - -Most popular destinations
, Trip frequencies
Level of personnel traveling to destination
Cost per trip (ideally, cost per seat-mile)
- What Users Want In On-Demand Air Transportation - -Safety
Reliability
Good News About the Provider
Good Service
- What is the basic form of On-Demand Air Transportation? -
-Private-Use/Employee-Flown Aircraft
- In-House Flight Department
- Owned or Leased Aircraft
- Flown by Company Pilots
- Mangement Company Method of Operation - -Under this method of
operation, the company or individual, contracts with the management
company to provide ALL services for a set fee.
- Aircraft
- Crew
- Training
- Hangar
- Joint Ownership - -Two or more entities (Individuals or Companies) become
registered joint owners.
- One owner employs the flight crew and all costs are shared by owners.
- Works well when owners infrequently uses the aircraft.
- Requires a detailed joint-operating agreement.
- Interchange - -- Predominately in the US.
- An owned aircraft is leased to another entity in exchange for equal time in
the
other entities' aircraft.
- Allows both entities to use the other aircraft as a back-up.
- Requires a detailed agreement.
- Aircraft Charter - -- Part 135, Charter Operator
- This may be the easiest and least expensive means of obtaining on-demand
air transportation.
- Allows company to use a variety of aircraft.
1|46 Q’s and A’s
How to Calculate Direct Operating Cost - -Total of all Receipts/hours, miles,
passengers
- We all have 3 resources available in pursuit of our goal - -Time, people,
and money
- What does not allow us to maximize our use of the available time? - -
Conforming to an airline schedule, waiting in terminals, and being subjected
to delays
- While many issues can be handled remotely, People still subscribe to
following THREE truisms - -- Deals are made in person
- Individuals like to be courted in person
- People learn more when they can see, touch, and hear in person
- Why Individuals and Companies Use On-Demand Air Transportation - -
Safety, Security, and Confidentiality.
Intangibles
- While the following issues justify on-demand air transportation, they create
a compelling reason for it. - -- Airline travel hassles
- Travel-related stress
- Nights on the road Fatigue
- Transportation Solutions
On-demand air transportation is a method designed to support business
personnel requirements; it is not an end unto itself. - -Air Transportation
Analysis
Companies must conduct a survey to determine existing and anticipated
travel patterns, thereby correctly determining their actual requirements.
- Three aspects of company travel: - -A historical view of airlines and on-
demand travel
Planned and expected travel needs for the future
Solutions for these needs
- Travel History: - -Most popular destinations
, Trip frequencies
Level of personnel traveling to destination
Cost per trip (ideally, cost per seat-mile)
- What Users Want In On-Demand Air Transportation - -Safety
Reliability
Good News About the Provider
Good Service
- What is the basic form of On-Demand Air Transportation? -
-Private-Use/Employee-Flown Aircraft
- In-House Flight Department
- Owned or Leased Aircraft
- Flown by Company Pilots
- Mangement Company Method of Operation - -Under this method of
operation, the company or individual, contracts with the management
company to provide ALL services for a set fee.
- Aircraft
- Crew
- Training
- Hangar
- Joint Ownership - -Two or more entities (Individuals or Companies) become
registered joint owners.
- One owner employs the flight crew and all costs are shared by owners.
- Works well when owners infrequently uses the aircraft.
- Requires a detailed joint-operating agreement.
- Interchange - -- Predominately in the US.
- An owned aircraft is leased to another entity in exchange for equal time in
the
other entities' aircraft.
- Allows both entities to use the other aircraft as a back-up.
- Requires a detailed agreement.
- Aircraft Charter - -- Part 135, Charter Operator
- This may be the easiest and least expensive means of obtaining on-demand
air transportation.
- Allows company to use a variety of aircraft.
