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Aircraft Feasibility Study

Aircraft Feasibility Study

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Published by Varun Vitta

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Published by: Varun Vitta on Nov 09, 2011
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Additional Aircraft Feasibility StudyPrefaceI have been the head aviation department manager of First North Bank since 1985. This bank hasbranches in Waterloo, IA; Springfield, MO; Fayetteville, AK; and Colorado Springs, CO. For the past12 years the company has been operating an eight passenger King Air B-200 that currently has 2500flying hours on the frame.First North Bank has recently acquired Banks R Us (probably because of the horrible name) and willbe expanding their operations considerably. They will be changing the name of Banks R Us to theFirst North Bank name at the following locations: Madison, WI; Wilmington, NC; Lakeland, FL;Amarillo, TX; and Medford, OR.I have now been assigned by my CEO to do a feasibility study to determine if the addition of
 
anaircraft will benefit the company. IntroductionThe purpose of this study is to determine the feasibility of adding additional aircraft to the corporationsaviation department. This study will introduce what aircraft the company is currently using, how it isbeing used, and the current structure of the aviation department. A detailed analysis will be presented
 
on the prices and costs of each aircraft as well as a recommendation of what aircraft should bepurchased or leased. A newly developed structure of the aviation department will be presented alongwith a new recommended plan for the usage of the aircraft. The study will then conclude with a sumup of all the recommendations.Current AircraftThe company is currently operating a 1985 Beechcraft King Air B-200. This aircraft is a propeller jetaircraft. The definition of a propeller jet aircraft is that the engine is a jet that drives a propeller. Thepropellers spin at a constant rate and speed changes are made by adjusting the angle of thepropeller. The aircraft
seats eight passengers to include the pilot’s seat. The entire aircraft is in very
good condition with only 2500 flight hours on it and has the potential of supplying many more years oftrouble free service with proper maintainace. The performance charteristiccs of this aircraft is asfollows:Beech King Air B200 CharacteristicsPERFORMANCE U.S. METRICMax Cruise Speed (336 mph) 292 kt 541 kphCertified Ceiling 35,000 ft 10,668 mMax Range 1,883 nm 3,487 kmENGINES: Pratt & WhitneyPT6A-42 850 shpWEIGHTSBasic operating weight(Std. BEW plus one pilot at 200 lb) 8,420 lb 3,819 kgUseful load 4,170 lb 1,891 kgDIMENSIONS (External)
 
Wingspan 54 ft 6 in 16.61 mMax airplane length 43 ft 10 in 13.36 mMax tail height 1 4 ft 10 in 4.52 mDIMENSIONS (Internal) CABINLength 16 ft 8 in 5.08 mHeight 4 ft 9 in 1.45 mWidth 4 ft 6 in 1.37 mhttp://www.raytheon.com/rac/kab200/specifications.htm (2000, September 13)The performance statistics that are tracked by the aviation department secretary is reliability rating,cost per hour, usage (broken down into days), maintenance time needed, airports flown to, and typesof flights flown. Some of these tracked items are displayed below:Beech King Air B200 Totals as of September 13, 2000Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecReliability (Percent) 99 97 99 99 99 99 99 97 98 99 95 95Hours Flown 75 215 215 200 201 400 400 500 100 100 95 75Maintance Hours 100 75 60 78 65 50 50 50 100 33 35 100The maintance upkeep of this aircraft has a couple of different facites. Every 200 hours the aircraft is
returned to it’s manufacture’s maintance facility for various types of inspections. The normal everyday
wear and tear maintance like light bulbs changes, tire changes, and normally everything else that isrequired to operate the aircraft is handled by contract maintenance. The company currently contractsthe aircraft maintenance to Elliott Aviations Incorporated in Omaha, NE. The aviation department hasbeen highly satisfied with the current contract and the personnel that have been completing themaintance on the aircraft. This company guarantees the most highly qualified FAA approvedmechanics that hold the rating and class requirements for this type of aircraft. The company has beenusing this repair facility for the past 7 years. If an additional aircraft were added the department wouldlike to continue this contract and just add the additional aircraft to the current contract.Our fueling and storage of this aircraft is handled by the Omaha airport fixed base operations (FBO).By fueling with the local FBO we get a slight reduction discount of 100 dollars a year for our normal
aircraft storage fee of 400 dollars per month. The aircraft is currently stowed in it’s own garage t
osecure it from other people and the weather elements.The training requirements for both pilots for this aircraft are an annual reoccurring training from FlightSafety at Orlando, Florida. This training includes a three-day refresher course with three hours ofsimulator training. This course is required for each pilot to help him/her learn any new techniques thathave been developed for this aircraft and maintain proficiency. The simulator training is used to createevents that could possibly be life threaten if carried out on the aircraft.The benefits that this one aircraft has contributed to this company are innumerable. To recount a feware as follows. This aircraft was the linchpin in our negotiations with Banks R Us. It would have takenmuch more time for face-to-face negotiations by flying commercial due to the hub and spoke systemcurrently being used by commercial airlines. The hub and spoke system is the use of small feederflights (spokes) that concentrate all the passengers in a central area for other flights (hub). Thisreduces the amount of empty seats airlines have and helps to simplify their scheduling at thecustomers expense. The use of commercial transportation would have added at least six hours perperson per flight because of wait times and the indirect flight routes that would have been needed.Another benefit this aircraft has added has been for the transportation of funds and interoffice mail.
 
The delivery times of those items were reduced by at least one to two days by the use of this aircraft.Current OrganizationThe current aviation department has a total of three sub-departments. Below is an organizationalchart of the aviation department.The first department is the Chief pilot position. This department involves a multitude of various tasks.The first and most important task is to safely fly the corporate aircraft with passengers and cargo to itsdesired destination. Another task is that the department head along with the legal and accountingdepartment is to negotiate contracts for maintence, fuels, and storage of the aircraft. The maintancecontract is renegotiated on an annual basis. Currently there has not been any changes to the contractin reference to conditions, money, or any other terms. The fuel servicing contracting also influencesthe monthly storage fee. The FBO has an agreement with us that if we purchase at least 500 gallonsof fuel per year with them that we will receive a 100-dollar credit towards our storage fee.The first pilot position is currently staffed with only one person who is responsible for being a safe pilotfirst, safety director, flight publications, and FAA regulations changes representative. As the safety
director the first pilot is responsible for formalizing the company’s flight po
licies in a specific manual.
This manual contains policies and procedures for the operation of the company’s aircraft. It describes
the duties involved with each position. Also, this manual describes the safety procedures that areused specifically by this aviation department.The scheduler/secretary position is staffed with two people. It is the heart of the aviation department.We have two people manning this office to take care of the workload and also to have redundancy.This is to ensure that if one person is unable to or no longer an employee than the other would beable to handle the department and train a replacement. This office is the central point of contact withthe entire aviation department and the rest of the company. To do this they coordinate flights with thetravel department. They also coordinate the aircraft in terms of use, maintance requirements of theaircraft, and the aircraft availability. They are responsible for the upkeep of the flight records for thepilots and the aircraft. They report to the accounting department on aircraft costs and travel expenses.Their final responsibility is to ensure that the proper supplies for the aircraft like beverages and mealsare available for the passengers and crew for the entire flight.Proposed AircraftThe study is now going to present several aircraft that I believe would be good candidates for thecompany to look at purchasing. With the new addition of more branches to the company a proposedaircraft has to have a range of at least 1500 nautical miles to traverse the distance from the homeoffice to the furthest branch which is the one that will be in Medford, OR.I did investigate the option of leasing an aircraft. The costs per month and over the entire life of thelease would cost considerably more than purchasing and operating a new aircraft. I believe that itwould not be feasible for the company to lease an aircraft.The proposed aircraft for purchase will be listed by initial cost of procuring the aircraft.http://www.aasiaircraft.com/SC_1250_specs.html (2000, September 20)Price (new): $2.89 MillionRange: 3200 nmCruise Speed: 435ktsSeating: 13

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