Gava Analysis

2701 WordsJul 28, 201311 Pages
Introduction The purpose of this paper is to conduct a General Aviation Value Analysis (GAVA) to determine whether one form of transportation is more efficient than another, in order for a group of colleagues to attend a business meeting. The intent of the assignment was to assess the value of using a business aircraft (verses commercial aircraft, personal car, train, etc.). The researcher compared and contrasted two trip locations, with multiple variables of attendees, modes of travel, and expenses associated with each variable. Parameters of the Research The researcher used the majority of the parameters provided by the course syllabus, specifically the “Course Projects” portion of this document (Embry-Riddle, 2013). The researcher…show more content…
The time saved by using the company aircraft is very substantial. Assuming that the employees would not have been working otherwise, the total cost in travel salaries for sending two people to the meeting in Prague would only be $504 (3.15 hours roundtrip x $80/hour x two employees = $504). This is much lower than the cost of driving a POV to Prague, as the trip is over twice as fast. If six employees were to attend the meeting, it would cost $1512 in wages during the travel time. To have two people attend the meeting in Adana would cost $1384 in travel salaries (17.3 hours x $80/hour = $1384). For six people to attend, it would cost $4152. These values are both significantly lower than the costs of driving a POV to the meeting. The cost of operating the company aircraft (for the purpose of this research study’s assumptions) is strictly based upon hours the aircraft is being operated, so it would have a flat rate of $1820 to fly everyone to Prague and back to Frankfurt. If the company was to have the meeting in Adana instead, it would cost $8948 to operate the aircraft. Once again, the number of passengers here is irrelevant to the cost – the total operating time is the key to this variable. Without knowing exact takeoff and land times of the corporate jet, the researcher assumed there would be two full rental days

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