Aviation Business Assignment Example | Topics and Well Written Essays - 3000 words

Aviation Business - Assignment ExampleLet us estimate the subscriber line cost for this charter company to run Cessna 172 twice a month as mentioned earlier is as followsTotal business cost includes fixed cost, racecourse costs or operational costs and landing and overnight tie down costs. Cost of running the aircraft Fuel required for running this charter evasion is its main component $ 1500 per one hour 2Total flying hours in a month For southern side (2+3) x 2 = 10 hoursFor northerly side (2+2+2) x 2 = 12 hoursTotal flying hours = 10 + 12 = 22 hoursAdditional flying hours to be considered / month = 10 hoursTotal flying hours = 12 + 22 + 10 = 44 hoursTherefore the total cost accounts to $66000 / month.The total cost per one year = $792000 (Fig 1) withdraw costs for aircraft Aircraft was purchased with 25 % residual cost of flight ($259,500) for 5 years $64750Lease cost for one year = $12950Lease cost for one month = $ 1079Fixed costs (This is the daily cost of running a bus iness ie. Rent, -------------------------------------------------------------------2 Jagson Airlines. 2009. Charter services. Charter rules, terms and conditions. Rates flying hours. http//www.jagsonairline.com/charter_services.htm.employee wages It includes the charges for the pilot project Chief pilot is the only one person employed here. His salary component (including the benefit of super annuation) is $60,000 (Fig 2).For additional assisting staff (including the benefit of super annuation) $25,000 cost incurred on equipment, insurance, Air operators certificate, test approvals, Pilots annual checks and renewals = $ 10,000. Lease for the office building $60,000 (Fig 3)Landing and overnight tie down charges for the airfield per year $24,000 (Fig 4)Detailed verbal description of... The charter aircraft will fly from Groote Eylandt (NT) to southern side in one fortnight and will return to Groote Eylandt (NT) and again from the same place it flies to northern side. Therefore i n a month, it has to travel once in southern direction i.e. from Groote Eylandt toEach time, it has to carry two medical staff and 40 kg medical accessories. All the basic principles of aviation including weather preparedness have to be kept in mind while platformning the route plan (Parma, 1999).The net profit calculated by the company is $ 705650 which has been added to all the costs of running aircraft and accordingly annual tender amount of $ 1689600 per year and $140800 per month has been finalized.For sure-fire flying with out any legal complications and for ensuring security norms of the respective nation, Cessna aircraft has to follow the aviation rules and regulations real strictly (Bruckert and Roud, 2007). The federal aviation regulations have to be followed very strictly while carrying out the aviation. The congestion management of aircrafts is essential along with the implementation of emission standards of aircrafts according to the federal regulations3.