Rev. Jan. 6, 2009
JCG GLOBAL AIR SERVICES
Sam Bursk set about the task of preparing a fuel plan for his upcoming four-leg flight to Boston, the New York City area, Dallas, and back. Like the other 13 corporate pilots he worked with, Bursk enjoyed flying a lot more than doing paperwork. But unlike some of his colleagues, Bursk rather enjoyed the challenge of constructing a fuel plan.
JCG Global Air Services JCG Global Air Services (AS) operated four aircraft to serve 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 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 locations throughout the world. The company’s largest and most 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 carry up to 13 passengers, a flight attendant, and two or three pilots. It burned fuel at a rate of approximately 450 gallons per hour. The firm owned and operated two Cessna Citation X aircraft (CE750), which it had purchased in 2002 and 2004. The CE750 (Figure 1) was the fastest nonmilitary plane in the world and often went from Moline to as far as South America, Europe, and Western Russia—a larger range than most small jets. Its fuel burn rate of 310 gallons per hour coupled with its 13,000-pound-capacity tank meant that Figure 1. Cessna Citation X aircraft.
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This case was written by Richard S. Reynolds Professor Phillip E. Pfeifer as a basis for class discussion rather than to illustrate effective or ineffective handling of an administrative situation. Names have been disguised. Copyright 2008 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved. To order copies, send an e-mail to firstname.lastname@example.org. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of the Darden School. Rev. 1/09.
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it required a fuel stop to reach these more distant destinations. It carried up to eight passengers and two pilots. The company’s newest aircraft was a 2006 Cessna Citation Sovereign (CE680). Used only within North America, this craft carried up to eight passengers and burned fuel at approximately 270 gallons per hour. Each of the four aircraft was budgeted for 650 flight hours per year, and AS had an annual budget of $22 million—less than 0.1% of company sales. The department consisted of 14 pilots (including the department manager and two pilot managers), six maintenance technicians, and four support staff members who were responsible for scheduling and office support.
The Upcoming Flight In two days, the CEO and CFO of the JCG Corporation had a trip scheduled from Moline, to Boston, 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 airport in Teterboro, New Jersey, as their destination 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...