'Jcg Global Air Services\r'

'UV1317 Rev. Jan. 6, 2009 JCG spheric AIR run Sam Bursk set about the task of preparing a provoke cast for his forthcoming four-leg evasion to capital of Massach parttts, the innovative York City area, Dallas, and covering fire. Like the other 13 corporeal pilots he worked with, Bursk enjoyed flying a lot to a greater extent than doing subjectwork. But unlike almost of his colleagues, Bursk rather enjoyed the argufy of constructing a give the sack image. JCG Global Air work JCG Global Air Services (AS) operated four air wiliness to resolve the transportation needs of the corporate headquarters of the JCG Company.Located on a 1,415-acre campus in Moline, Illinois, the headquarters housed the executive and administrative staff of JCG’s divisions along with a wide of the mark array of company-wide functions. Close to 2,400 JCG employees worked at headquarters. Company executives routinely used AS to fly to company factories, marketing facilities, and customer lo cations throughout the world. The company’s largest and almost expensive aircraft, the Gulfstream GV, had a range of 6,000 nautical miles. Purchased in 2001, it was flown throughout the world including the growth areas of India and China.It could obtain up to 13 passengers, a escape cock attendant, and cardinal or three pilots. It burned send away at a rate of approximately 450 gallons per hour. The firm owned and operated deuce Cessna point of reference X aircraft (CE750), which it had purchased in 2002 and 2004. The CE750 (Figure 1) was the fastest unmilitary plane in the world and often went from Moline to as far as South America, Europe, and Western Russiaâ€a larger range than most small jets. Its can burn rate of 310 gallons per hour coupled with its 13,000-pound-capacity arto a greater extentd combat vehicle meant that Figure 1.Cessna Citation X aircraft. © Bryan Correira (used with permission) http://www. flickr. com/photos/bcorreira/2540324650/ This case was create verbally by Richard S. Reynolds Professor Phillip E. Pfeifer as a rear end for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. name have been disguised. Copyright ? 2008 by the University of Virginia Darden School Foundation, Charlottesville, VA. any rights reserved. To order copies, send an e-mail to [email protected] com.No air division of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any meansâ€electronic, mechanical, photocopying, recording, or other thanâ€without the permission of the Darden School. Rev. 1/09. Purchased by ersin koc ([email protected] com) on March 07, 2013 -2- UV1317 it required a give the axe come off to r separately these more distant finishings. It carried up to viii passengers and two pilots. The company’s newest aircraft was a 2006 Cessna Citation Sovereign (CE680).Used only w ithin North America, this craft carried up to eight passengers and burned can at approximately 270 gallons per hour. Each of the four aircraft was budgeted for 650 escape hours per year, and AS had an annual budget of $22 million†little than 0. 1% of company sales. The segment consisted of 14 pilots (including the department manager and two pilot managers), six maintenance technicians, and four support staff members who were creditworthy for computer programming and office support.The Upcoming Flight In two days, the CEO and CFO of the JCG Corporation had a tripper scheduled from Moline, to capital of Massachusetts, the New York City area, Dallas, and then back to Moline. The purpose of the trip was to pick up some key analysts and mutual fund managers in Boston and New York and show them the new JCG factory in Dallas and the new JCG distribution center in Moline. They would be picking up two passengers in Boston and four in New York.As usual, AS would use the drome in Te terboro, New Jersey, as their finis in the New York City area; it was the closest airport to Wall Street, Manhattan, and the Lincoln Tunnel. Each U. S. airport carried a four-letter identifier beginning with the letter K. The upcoming four-leg flight would go from KMLI to KBOS to KTEB to KDAL and back to KMLI. Pilots at AS were responsible for creating and filing their own flight plans with the U. S. Federal airmanship Administration (FAA). One element of the flight plan was the scoffing and landing incubus of the aircraft.To calculate these, integrity started with the basic operating heaviness ( scrunch up) of the craft and added the weight of the passengers and fuel. The stalk included the structure of the aircraft, a stocked galley, emergency equipment, and the crew. The only weight comp wholenessnts that varied from flight to flight were passengers and fuel. The only comp nonpareilnt that varied from takeoff to landing on a given flight was fuel. (For the purposes of t his case study, we ignore the possibility of executive skydiving. )Tinkering with Tankering This meant that one of Bursk’s first tasks was to determine a furnish plan for the upcoming flights. Coming up with a fuel plan was not a glad task for pilots because there was no straightforward bureau to calculate how much fuel to take on or â€Å"upload” at the beginning of each leg. One question was whether or not to â€Å"tanker. ” Tankering referred to a practice in which free fuel was uploaded ab initio to avoid having to purchase higher-priced fuel at destination airports. AS operated its own fuel farm at Moline,Purchased by ersin koc ([email protected] com) on March 07, 2013 -3- UV1317 which unbroken its fuel bes low. Fuel at Moline at the time cost $3. 97 a gallon. In contrast, fuel purchased at KBOS cost $8. 35 a gallon. As a simple example of tankering, Bursk could judge to upload enough fuel at KMLI to carry him through both of the first two legs , thereby avoiding buying fuel at KBOS. In essence, AS would carry or tanker from KMLI the fuel postulate to fly from KBOS to KTEB. One factor that worked against tankering was ramp fees.side fees were placed fees charged to each landing jet by the destination airport’s general-aviation terminal; the fees cover the costs of operating the terminal. The ramp fee at KBOS was $800. The fee was spared with the purchase of 500 or more gallons of fuel. To begin the process of constructing a fuel plan, Bursk assembled the learning in Exhibit 1. The fuel burn come were fairly easy to calculate found on flight miles and aircraft. (The burn numbers included the fuel used during locomoteing at the departing airport. Although the calculation was more modify than just multiplying miles by average gallons per mile (because extra fuel was used at takeoff), most pilots could do the calculation in their heads. Fuel prices, ramp fees, and lower limit gallons needed to waive the ramp fee s could all be found on the Internet. In addition to the cost of fuel and ramp fees, Bursk needed to consider the limitations of the CE750 (Exhibit 2). The fuel tank capacity was a firm natural limit, and the departure ramp and landing weight limits were morphologic limits developed by the manufacturer and approved by the FAA during aircraft certification.To calculate departing ramp or arrival weight, Bursk added BOW to the weight of the fuel and the weight of the passengers (passenger weight calculations were based on a company-mandated figure of 200 pounds per person, including luggage). at that place were two final considerations. The company specified that aircraft eternally land with at least 2,400 pounds of fuel. Any fuel plan Bursk developed would have to be one in which the weight of fuel at arrival met or exceeded 2,400 pounds. This â€Å"safety stock” was there to suss out jets had enough fuel to make it to an alternate airport should there be bad weather at t he destination airport.The second consideration was that the company visit immediately shapeing the fuel level up to 7,000 pounds upon arrival back at KMLI. The rationale for this was that the aircraft would endlessly be ready to go at a moment’s notice. This meant that Bursk’s fuel plan should begin with the CE750 containing 7,000 pounds of fuel. (For flights using the larger Gulfstream GV aircraft, the policy was to constantly land with at least 4,500 pounds of fuel and bring its fuel level up to 8,700 pounds upon arrival at KMLI. As Bursk prepared to put pencil to paper to create a fuel plan for the upcoming KMLI to KBOS to KTEB to KDAL to KMLI trip, he paused to ponder why aircraft gauges measured fuel in pounds and yet fuel was sold in gallons. Like every other pilot at AS, he knew the importance of the number 6. 7â€the weight in pounds of a gallon of jet fuel. Purchased by ersin koc ([email protected] com) on March 07, 2013 -4Exhibit 1 JCG GLOBAL AIR SERVICES Flight Details UV1317 point 1 2 3 4 die KMLI KBOS KTEB KDAL Arrive KBOS KTEB KDAL KMLI Miles 890 176 1,202 628 Duration (hrs:mins) 2:00 0:40 2:55 1:35Fuel burn including taxi (pounds) 4,800 2,000 5,300 3,100 Fuel price ($/gallon) $3. 97 $8. 35 $7. 47 $6. 01 Ramp fee $800 $450 $400 Minimum gallons to waive fee 500 300 350 Exhibit 2 JCG GLOBAL AIR SERVICES Aircraft Limitations (in pounds) Aircraft Maximum Ramp Weight Maximum Landing Weight BOW* Fuel Tank Capacity CE750 36,400 31,800 22,200 13,000 GV 90,900 75,300 48,800 41,300 *BOW = basic operating weight of the aircraft, including crew and excluding the weight of fuel and passengers. Purchased by ersin koc ([email protected] com) on March 07, 2013\r\n'