Terms of Reference 4
Cessna Citation CJ2+ jets or PC-12NG turboprops for Executive Jets
Prepare a report for the President of Executive Jets of Daytona to recommend recapitalizing the company’s fleet with Cessna Citation CJ2+s or Pilatus PC-12NGs.
Also, prepare an interim talking paper on your study for review and possible forwarding to the President and EJD’s investors.
Since both aircraft are mature designs, the President is most interested in their cost effectiveness in terms of each market segment and the desires of EJD’s customers. Ultimately, the company is interested in acquiring one or more aircraft types that will serve the present customer base and attract new customers as well.
The fleet must serve EJD’s current business base.
50% of our passengers are from corporations grossing between $20-50M per year. They value comfort and time, but are also sensitive to the cost of travel.
30% of our passengers come from companies grossing between $51-90M. They are willing to pay significant premiums to save even modest amounts of time.
20% of our passengers are leisure travelers who generally are not willing to pay premiums to save time. In fact, since leisure groups generally bring along heavy baggage, such as surf boards and/or scuba tanks, they prefer aircraft with larger cabins, even if they are slower.
For practical purposes, the 50/30/20 spread of travel by the company’s passenger segments is sustained through each of the mission segments discussed below.
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