DOCSLIB.ORG

Table of Contents Acknowledgement

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Table of Contents Acknowledgement EMGT 835 FIELD PROJECT: Feasibility Study for a New Business Jet By Yasser Abdullah Mousa Master of Science The University of Kansas Fall Semester, 2009 An EMGT Field Project report submitted to the Engineering Management Program and the Faculty of the Graduate School of The University of Kansas in partial fulfillment of the requirements for the degree of Master’s of Science. ________________________________ Linda Miller Date Committee Chair ________________________________ Tom Bowlin Date Committee Member ________________________________ Herb Tuttle Date Committee Member Table of Contents Acknowledgement ........................................................................................................................................4 Executive summary.......................................................................................................................................5 1: Introduction ..............................................................................................................................................6 2: Literature Review......................................................................................................................................8 2.1: Customer analysis ..............................................................................................................................8 2.1.1: Market definition:.......................................................................................................................8 2.1.3: Customers Segments: ...............................................................................................................12 2.1.4: Product groups:.........................................................................................................................15 2.2: Industrial analysis.............................................................................................................................17 2.2.1: Macro‐economy factors............................................................................................................17 2.2.2: Market factors ..........................................................................................................................22 2.2.3: Industry structure factors .........................................................................................................25 2.3: Competitor analysis .........................................................................................................................28 2.4: Opportunities and threats ...............................................................................................................38 3: Project Methodology ..............................................................................................................................39 3.1 Market Evaluation.............................................................................................................................39 3.2: Market selection ..............................................................................................................................42 3.3: Product Positioning..........................................................................................................................43 3.4: Profitability analysis.........................................................................................................................51 4: Findings ...................................................................................................................................................57 5: Conclusion...............................................................................................................................................59 6: Recommendations for Future Research .................................................................................................60 References ..................................................................................................................................................61 Appendix A..................................................................................................................................................64 Appendix B ..................................................................................................................................................65 Appendix C ..................................................................................................................................................67 1 Table of Figures: Figure 1: Transportation industry Classification ...........................................................................................9 Figure 2: Market definition system.............................................................................................................10 Figure 3: Age Distribution (US Census Bureau, 2008).................................................................................18 Figure 4 : Business Jet Market Size (GAMA, 2008) .....................................................................................23 Figure 5 : Business Jet Delivery Unites (GAMA, 2008)................................................................................24 Figure 6: Business Jet Market Share in 2008 ..............................................................................................29 Figure 7: Perceptual Map (Price Vs Seats) ..................................................................................................44 Figure 8: Perceptual Map (Price Vs Speed).................................................................................................44 Figure 9: Perceptual Map (Price Vs Range).................................................................................................45 Figure 10: Early adoption sales projection..................................................................................................52 Figure 11: Moderate adoption sales projection .........................................................................................52 Figure 12: Late adoption sales projection...................................................................................................53 2 Tables: Table 1: Gross Profit Margins.....................................................................................................................25 Table 2: Number of business jet aircraft in service and under development per company ......................28 Table 3: Market size evaluation..................................................................................................................39 Table 4: market growth evaluation.............................................................................................................40 Table 5: Market life cycle evaluation..........................................................................................................40 Table 6: sensitivity to business cycle ..........................................................................................................41 Table 7: Entry barriers.................................................................................................................................41 Table 8: Risk‐to‐benefit of introducing new technology ............................................................................41 Table 9: Competition intensity....................................................................................................................42 Table 10: Market selection .........................................................................................................................42 Table 11: Business jets' parameters ...........................................................................................................46 Table 12: VLJ aircraft preference ................................................................................................................47 Table 13: Attribute level .............................................................................................................................47 Table 14: Dummy coding for independent variable ...................................................................................48 Table 15: Worth utility calculations............................................................................................................48 Table 16: Attributes weight ........................................................................................................................49 Table 17: Market share results ...................................................................................................................50 Table 18: Adoption Scenarios .....................................................................................................................51 Table 19: Input design parameters.............................................................................................................54 Table 20: Cost estimation model results ....................................................................................................54 Table 21: Aircraft cost estimation...............................................................................................................54 Table 22: Bas‐case cash flow.......................................................................................................................55 Table 23 : The effect of change in market condition in IRR........................................................................56 3 Acknowledgement I would
Load more

Recommended publications
  • SULLY's SPLASHDOWN: a Story of Redemption for Pilots the Recession
    AKERS...EUROPE’S ETS PROVES TO BE A FIASCO FOR OPERATORS...NEWSMAKERS...PLATINUM JET EXECS, EMPLOYEES INDICTED...NEWSMAKERS...START-UP FRAX JET REPUBLIC F O L D S . N E W S M A K E R S . F A A A C T S Q U I C K L Y I N NEWSmak2009ers INSIDE: I Sully’s splashdown pg 22 I The recession takes its toll pg 22 I Santulli ejects from NetJets pg 23 I Negative portrayal of bizjets pg 23 I Northwest pilots overfly MSP pg 23 I Europe’s ETS proves a fiasco pg 24 S R E T JetDirect collapse pg 24 U I E R / D I SULLY’S SPLASHDOWN: TSA revises LASP proposal pg 24 M I R E D C M Colgan crash ignites questions pg 26 N I A D A story of redemption for pilots N E R Eclipse Aerospace pg 26 B I NEWSMAKER OF THE YEAR I Hudson River midair pg 28 K C I Platinum Jet workers indicted pg 28 N I P hen Capt. Chesley “Sully” going to be in the Hudson.” E O K Sullenberger brought the aft Only a fellow pilot, aware of the slim odds Jet Republic collapses pg 30 M I I belly skin of his US Airways for putting an airliner down in water without J Capt. Chesley “Sully” Sullenberger (left) and FAA approves Waas upgrades pg 30 WAirbus A320 into contact breaking apart in the process, can fully appre- First Officer Jeffrey Skiles brought some glory I with the cold water of New York’s Hudson ciate the enormity of what confronted Sully to the airline pilot profession.
    [Show full text]
  • Eclipse and Kestrel Are One!
    INTERNATIONAL FLYING THE DIY TRAVEL PREP MAGENTA LINE Border crossings made easier Will you fall victim? EJOPA EDITION PAGE 14 THE PRIVATE JET MAGAZINE • SUMMER 2015 ECLIPSE AND KESTREL ARE ONE! AUTOMATED FORECASTS Why computer WX prediction is worrisome READY FOR A FLYING CAR? Lots of manufacturers race from freeways to airways PAGE 54 FAA Type Ratings & Recurrent Flight Training Sales • Training • Delivery Your Turbine Transition Specialists jetAVIVA is an authority on owner/operator flown turbine aircraft, oering acquisition and sales services backed with the experience of completing hundreds of transactions. Furthermore, we provide acceptance, delivery, and training services in all production light turbine aircraft. jetAVIVA is focused Featured in AOPA PILOT Magazine on providing Clients with comprehensive services to choose the right aircraft and operate it with maximum eciency and safety. Customized Flight Training Programs on Your Time at Your Location FAA Type Rating Practical Tests & Recurrent Training Per FAR 61.58 CE-500 • CE-510 • CE-525 • CE-560 XL • CE-650 • LR-JET • RA-390 • DA-50 John Azma is an FAA Designated Pilot Examiner qualified to provide Recurrent Training & Type Rating Practical Tests that may be added to your private, commercial and airline transport pilot certificate. Azma FLT Inc. is based in Orlando Florida at KORL. Our experienced & professional flight instructors are also available to provide training at your location. Highly regarded in the industry, and approved by insurance companies, Azma Contact Us To Learn More: FLT Inc. has been featured in aviation specific publications and editorials. Our 844-296-2358 commitment to excellence and superior services begins when you first contact Learn what jetAVIVA can do for you at www.jetAVIVA.com [email protected] us and continues beyond the completion of your training.
    [Show full text]
  • Designing a Very Light Jet
    GadShannan DESIGN Akademin för Innovation, Design och Teknik Designing a Very Light Jet Master thesis work 30 credits, D-level Product and process development, concurrent engineering Master Thesis Programme Innovation and Product Design Per Nyblom Report code: IDPPOPEXD:08:11 Commissioned by: GadShaanan DESIGN Tutor (company): Mladen Barbaric Tutor (university): Ragnar Tengstrand Examiner: Rolf Lövgren Abstract Introduction Very light jet is a hot subject growing stronger and stronger. The new type of air craft is an air plane that weighs less than 10000 pounds and uses a jet engine. Problem The student was proposed to designing a conceptual very light jet that could be used for inspiration and accepted the challenge. Method In this thesis the reader can follow the project progress in detail, the proposed methods and the results. The student divided the project into four activities analysis, creation, development and documentation. Result The project ended with a concept very light jet with simple specifications. Illustrations for inspirational usage and a simulation testing for verification of the proposed concept specifications. Keywords: Nm 1 nautical miles = 1.852 kilometres lb 1 pound = 0.45359237 kilograms ft 1 foot = 0.3048 metres in 1 inch = 0.025 metres MTOW Maximum take-off weight Pax Available Seats in an airplane both crew and traveller VLJ (micro jet) Very Light Jet, coined expression. FAA Federal Aviation Administration, www.faa.gov EASA European Aviation Safety Agency, www.easa.eu.int CAA Civil Aviation Authority PDF File format standard Intelligence Information that is presented easy to act on. Thrust Power given by a jet engine measured in pounds.
    [Show full text]
  • Business Aviation a Boardroom Issue
    MAKING BUSINESS AVIATION A BOARDROOM ISSUE SPECIAL PRE-PRINT REPORT BY FIRST MAGAZINE, CELEBRATING EBACE 2017 An Ever-Resilient Industry Readies For A Much-Needed Rebound usiness Aviation has had its share of partnership with NBAA hosting the annual billion in time saved annually by European ups and downs certainly, but being European Business Aviation Convention companies using business aviation for their Ba cyclical industry and subject to the & Exhibition (EBACE) also shared the employees; and EUR 2,840 in average whims of global economic conditions, it good news that business aviation traffic productivity gains per passenger, per trip. has remained resilient and persistent over figures rose for the fifth consecutive (For more information, visit www.ebaa.org.) the years. Industry leaders have learned to month in March compared to the same cope amazingly well, under the most trying period in 2016. As Brandon Mitchener, Manufacturers’ R&D Investments Drive conditions. As Ed Bolen, President and the recently appointed Chief Executive Business Aviation Industry CEO of NBAA (National Business Aviation Officer of EBAA was pleased to report, In a sense, manufacturers are continuing to Association) notes, “It’s almost impossible “After several years of sluggish growth, the create their own “pent-up demand” for new to predict what we’ll see on the world stage signs are favourable for a new direction in products and technologies across all sectors over the next several years. But reliable 2017, with first quarter traffic figures up of the industry, while lending a measure indicators do point to continued, measured 6.7 percent from a year ago.
    [Show full text]
  • The Very Light Jet Arrives: Stakeholders and Their Perceptions
    Journal of Air Transportation Vol. 12, No. 1 -2007 THE VERY LIGHT JET ARRIVES: STAKEHOLDERS AND THEIR PERCEPTIONS Richard Cobb Jacksonville State University Jacksonville, Alabama James L. Thomas Jacksonville State University Jacksonville, Alabama Laura A. Cobb Auburn University Auburn, Alabama ABSTRACT This article summarizes the initial results of a systematic study that addressed issues related to the direct and indirect market impact of very light jet (VLJ) aircraft. Although reports in the popular press offer wide-ranging estimates of the impact that these new jets will have on existing air travel, no systematic data exists that may be of use to all potential stakeholders. This introductory study serves to describe potential VLJ users and their perceptions of this new type of aircraft. _____________________________________________________________________________ Richard Cobb (Ph.D., The University of Alabama) is a professor of management at Jacksonville State University. His research has appeared in such publications as Simulation, Quality Progress, Academy of Strategic Management, Journal of Air Transport Management, and the Journal of the International Academy for Case Studies. He has been published in numerous conference proceedings. James L. Thomas (Ph.D., University of Mississippi) is currently an associate professor of marketing at Jacksonville State University. His research has appeared in such publications as the Journal of Retailing, Business Ethics Quarterly, Journal of Nonprofit and Public Sector Marketing, and the Journal of Marketing Theory & Practice. He has also published papers in several national and regional conference proceedings. Laura A. Cobb (MBA, Auburn University) is a cost specialist in the market research and technology department of Blue Cross and Blue Shield of Alabama.
    [Show full text]
  • Cirrus Vision SF50 Update
    PERSONAL JET Cirrus Vision SF50 update Cirrus Vision SF50 is a composite fully pressurized aircraft. The OEM is considered one of the pioneers of composite airframe construction. To date, Cirrus has delivered 6300 composite airframes without a single structural failure. Certification of the $1.96 million single-engine personal jet enters the home stretch with customer deliveries expected mid-year. By Stuart Lau Order book 18 to 24 months later, full produc- ATP/FE/CFII Airbus A300-600, tion will peak out at over 100 aircraft Boeing 747, 747-400, 757/767, Popularity of the Cirrus SR20 and per year. CRJ and Saab 340 SR22 series continues as the Vision Jet nears certiication. For the past 2 irrus Aircraft is entering the years, Cirrus has delivered over 300 An integrated digital aircraft inal stages of certiication for new aircraft annually maintaining its Cirrus Perspective Touch by Garmin Cthe world’s irst single-engine leading-in-deliveries position. In all, was introduced in late 2015 as the personal jet: The Cirrus Vision SF50. Cirrus has delivered over 6300 high new avionics system designed spe- Targeting mid-2016 for certiication performance single-engine piston ciically for the Vision SF50. Based and entry into service, this $1.96 aircraft. Many of these current Cir- on the Garmin 3000 avionics suite, million aircraft will establish a new rus customers have placed deposits the Perspective Touch system fea- category positioned neatly between for the new Vision SF50. To date, the tures the latest turbine-class touch- the single-engine turboprop and company has chalked up nearly 600 screen-based lightdeck.
    [Show full text]
  • Will Very Light Jets Replace King Air Turboprops for Business Travel?
    Applied Aviation Sciences - Prescott College of Aviation 7-2010 Will Very Light Jets Replace King Air Turboprops for Business Travel? Vince Jean-Paul Pujalte Embry-Riddle Aeronautical University, [email protected] Follow this and additional works at: https://commons.erau.edu/pr-meteorology Part of the Business Commons, and the Management and Operations Commons Scholarly Commons Citation Pujalte, V. J. (2010). Will Very Light Jets Replace King Air Turboprops for Business Travel?. , (). Retrieved from https://commons.erau.edu/pr-meteorology/5 This Article is brought to you for free and open access by the College of Aviation at Scholarly Commons. It has been accepted for inclusion in Applied Aviation Sciences - Prescott by an authorized administrator of Scholarly Commons. For more information, please contact [email protected]. WILL VERY LIGHT JETS REPLACE KING AIR TURBOPROPS FOR BUSINESS TRAVEL? by Vince Jean-Paul Pujalte A Graduate Capstone Project Submitted to the Extended Campus In Partial Fulfillment of the Requirements of the Degree of Master of Aeronautical Science Embry-Riddle Aeronautical University Extended Campus Tucson Center July 2010 WILL VERY LIGHT JETS REPLACE KING AIR TURBOPROPS FOR BUSINESS TRAVEL? By Vince Jean-Paul Pujalte This Graduate Capstone Project was prepared under the direction of the candidate’s Project Review Committee Member, Mr. Nolan Davidson, Adjunct Assistant Professor, Extended Campus, and the candidate’s Project Review Committee Chair, Dr. Mary Lou Collins, Associate Professor, Extended Campus, and has been approved by the Project Review Committee. It was submitted to the Extended Campus in partial fulfillment of the requirements for the degree of Master of Aeronautical Science.
    [Show full text]
  • On the Verge
    FLIGHTDECK s very light jets (VLJs) enter flight lines Plans for most VLJ models are for twin- around the world, analysts expect acci- engine aircraft with four to six seats, typically dent rates at levels that — initially — will capable of being flown at speeds of 300 kt or exceed those of other business aircraft. more and at altitudes up to 41,000 feet. Most AIncreases in accident rates historically have are priced from about US$1 million to nearly followed the introduction of new aircraft types. $3 million. Most also are equipped with systems However, for the VLJs, several factors — notably designed to reduce pilot workload and increase their avionics and automation systems — are safety, including traffic-alert and collision avoid- expected not only to help mitigate the increases ance systems, terrain awareness and warning but also to be the impetus for industry-wide systems (TAWS), real-time weather data and safety improvements. weather displays, and integrated electronic flight VLJs — defined as turbofan-powered air- bags. planes weighing 10,000 lb (4,360 kg) or less and Many of these aircraft are expected to be sometimes called “microjets” or “personal jets” flown by professional pilots in unscheduled — have begun to trickle into the business jet commercial operations and corporate opera- fleet. The first production certificate for a VLJ tions; some will be flown by nonprofessionals, was issued Nov. 22, 2006, by the U.S. Federal typically pilots with considerable experience Aviation Administration (FAA) to Cessna in turboprops or piston airplanes with highly Aircraft for its Citation Mustang; the same day, integrated cockpits — that is, cockpits in which the first Mustang was delivered to a customer.
    [Show full text]
  • Downloadable App to Connect Smartphones Audio, and Lighting Supplies to the U.S
    Maximizing your investment in private air transport August/September 2016 | Vol. 14 No. 5 BUSINESS JET TRAVELER® BRUCE DICKINSON His band, Iron Maiden, plays heavy metal—and he pilots its heavy jet FALCON 900DX | POLAR BEARS | CABIN TECH BJTONLINE.COM Dassault Falcon Jet Corp. dfj c019693a Proof 1 NON-STOP LUXURY FROM LONDON TO SINGAPORE AND ANYWHERE IN BETWEEN. To step inside Dassault’s new agship is to experience the ultimate expression of comfort and cabin chic. With 30 spacious con gurations to choose from and exquisite, handcrafted nishings, no detail is overlooked. With its 6,450 nm/11,950 km range, the 8X not only ies farther than any previous Falcon, it is able to y into airports other long-range jets have to y over. Falcon 8X. Arriving in 2016. WWW.DASSAULTFALCON.COM I FRANCE: +33 1 47 11 88 68 I USA: +1 201 541 5600 Business Jet Traveler Trim: 9”x10.75” Bleed: .125” Safety: .375 INSIDE BJT AUGUST/SEPTEMBER 16 26 50 DEPARTMENTS 6 UP FRONT Some well-deserved awards. FLYING 8 MAILBOX On the Byrds’ “Eight Miles High” and 12 ON THE ROAD 40 USED AIRCRAFT REVIEW a GIV crash. Business jets typically have good-looking cabins, The Falcon 900DX is a great airplane backed with but the most memorable sights are often excellent product support, and the price is right. 10 ON THE FLY through the window. Incredible timepieces, Kentucky’s bourbon 46 PREOWNED trail, and a major new Washington museum. 16 INSIDE FRACTIONALS The best—and worst—buys in business jets. Shareholders lose ground as providers restrict 14 MONEY MATTERS rights and flexibility, consultants contend.
    [Show full text]
  • Very Light Jet Fueling Systems
    Close Window Very Light Jet Fueling Systems Emerging market fuels expansion. By Gordon Johnson In 1976, I went to work as an outside salesman for Allan U. Bevier Inc., a Baltimore-based charter member of PEI, whose primary business was the manufacture of fuel oil delivery trucks for customers in Maryland, D.C. and Northern Virginia. Tank truck business was steady, but the real growth opportunity at the time was the conversion of trailers to bottom loading and vapor recovery. Bevier’s trailer shops were jammed with transports awaiting API adapters, vents, Scully systems and all the other new and exotic devices that have now become commonplace. For a young and impressionable outside salesman, it was my first experience with a tide of business directly generated by external HondaJet’s over-the-wing engine-mount reduces drag at forces and, like most forces that shape our industry, high speed to improve fuel efficiency. it was the direct result of government regulation (i.e. Clean Air Act of 1970). The next tide arrived some ten years later as federal UST (Underground Storage Tank) regulations produced a wave of business unlike any seen before in the petroleum equipment business. It would last longer and affect more PEI distributors than any other government regulation or market force had ever done before. The removal and replacement of thousands of leaking underground storage tanks would enable PEI manufacturers, distributors and installers to participate in a flood of business estimated by some in the hundreds of millions of dollars. Environmental remediation became a legitimate business activity and not just an industry buzzword.
    [Show full text]
  • In the Face Ket, the VLJ Category (Defined As Any Jet Aircraft with an Mtow of Less Than 10,000 Pounds) Is Really Somewhat Broad
    AIN Special Report Competitors move toward certification and market entry by Chad Trautvetter The dawn of the very light jet (VLJ) is nearly upon us, with the first, the Eclipse 500, set to receive FAA certification in June. Hot on the heels of the Eclipse VLJ is Cessna’s Citation Mustang and 10 other VLJs fly potential competitors. While it might seem like a crowded mar- in the face ket, the VLJ category (defined as any jet aircraft with an mtow of less than 10,000 pounds) is really somewhat broad. There appear to be three distinct VLJ subcate- gories–single-engine (costing about $1 mil- lion), small-cabin (between $1 million and $2 million) and large-cabin (more than $2 million). Aviation Technology Group’s Javelin– with two tandem seats and a $2.795 of critics million price tag–is the exception to this rule, but it’s hardly a business jet either. In the single-engine category are the Diamond D-Jet and Excel-Jet Sport-Jet. Small-cabin VLJs include the Javelin, Eclipse 500 and Tam-Air Epic EliteJet. The large-cabin segment encompasses the Adam A700, Avocet ProJet, Cessna Mus- tang, Embraer Phenom 100, Eviation EV-20 Vantage, HondaJet and Spectrum 33. While competition is fairly light in the single-engine and small-cabin VLJ subcat- egories, it’s much more fierce in the large- cabin group. Therefore, any casualties are more likely to come from this crowded sub- category, though entries in the two smaller groups are far from immune to failure. In any case, this year will be a water- shed year for VLJs, with some entering service and others reaching key mile- stones.
    [Show full text]
  • Pilot Training
    VERY LIGHT JET: PILOT TRAINING TO ENHANCE SAFE AND EFFICIENT OPERATION By TWEET T. COLEMAN Bachelor of Science Mills College Oakland. California 1976 Master of Aeronautical Science Embry-Riddle Aeronautical University Daytona Beach, Florida 1995 Submitted to the Faculty of the Graduate College of the Oklahoma State University in partial fulfillment of the requirements for the Degree of DOCTOR OF EDUCATION July, 2008 VERY LIGHT JET: PILOT TRAINING TO ENHANCE SAFE AND EFFICIENT OPERATION Dissertation Approved: Steven K. Marks Thesis Adviser Mary Kutz Timm Bliss James P. Key A. Gordon Emslie Dean of the Graduate College ii ACKNOWLEDGMENTS “In this chaotic world, we need leaders… We need leaders to help us develop the clear identity that lights the dark moments of confusion” (Wheatley, 1999). I wish to thank my committee members, who lead and guided me to complete the academic requirements: Dr. Mary Kutz, Dr. James Key, Dr. Timm Bliss, and especially my committee chair, Dr. Steve Marks. A big “Mahalo” to my course coaches: Alethia Futtrell and John Direnzo, also graduates of this program. We worked as a team throughout this educational journey, sharing our understanding of the leadership styles of 20th and 21st century, class presentations, and the statistical research and design challenges. We supported each other, certainly a comforting feeling when working through this doctoral program. I want to express my deep appreciation to my husband, Patrick, who has been there through the light and dark moments for the last 39 years. Clearly, he is the horizontal stabilizer in my life and especially with this research project.
    [Show full text]