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Introduction
Overview Who Can Use the Aircraft and How to Schedule a Flight Advantages The Decision - Fly MnDOT Aircraft, Drive, or Commercial Air Employee Productivity Increased Productivity Security and Safety Scheduling Flexibility Reports Car Travel Costs Worksheet MnDOT Base Salary Multiplier Air Travel - State Plane Airplane Passenger Capacity Definitions
As we enter a new era of budget concerns and constraints, it is incumbent upon each of us as managers to make decisions that will more efficiently utilize the reduced staffs we now have. Although we have lost staff, our tasks must still be accomplished; therefore, we must use available work hours judiciously to complete our mission. This report has been prepared to give managers a way to save time and money by understanding all their travel options when meetings and events are held at either out-state Minnesota or other U. S. destinations. There are three basic options for travel in such situations: driving a passenger vehicle, taking a scheduled flight on a commercial airline, or using Minnesota Department of Transportation business aircraft. Most managers are well aware of the advantages and disadvantages of driving to a meeting or flying on a scheduled flight. Using factual information from the National Business Aviation Association Management Guide, the NBAA Fact Book, and MnDOT's Fleet Study and Travel Policy Manual, this report will help managers understand their third option: MnDOT business aircraft. Like any business tool, use of MnDOT business aircraft must be subject to careful cost consideration. The cost/benefit relationship must be favorable for the option to fly MnDOT aircraft to be exercised. Therefore, managers should weigh all their travel options -- passenger vehicles and commercial airline flights as well as MnDOT business aviation. There are some situations that call for passenger vehicle use or booking a commercial flight; however, business aviation is often the best option. Clearly, the private sector knows this, as over 10,000 companies utilize business aircraft on a regular basis. Some of the MN based companies that have their own fleet of business aircraft include:
MnDOT owns and operates, at this time, two turboprop aircraft: a King Air C90 and a King Air B200. The capacity of each aircraft is:
A Louis Harris Poll stated that only 14% of company employees traveling on board business aircraft were top management. The other 86% were: 14% senior managers, 49% middle managers and 19% professional staff. In this study it was also found that passengers felt they were significantly more productive aboard business aircraft than they would be even in their own offices. These aircraft are available to individuals who are conducting business on behalf of the state of Minnesota. The planes are used in a variety of ways including the weekly shuttle service provided for individuals and groups flying to various pre-determined locations in Minnesota and groups flying to locations in and outside of Minnesota. Elected officials and state employees are encouraged to utilize MnDOT's aircraft whenever it is most cost effective in conducting official business outside the metropolitan area and time is essential. Flying increases employee productivity and is often the most cost efficient means of travel when comparing driving time, lodging and meal expenses. To use the MnDOT aircraft, a request must be made to the dispatcher who in turn will schedule a seat on the shuttle or set an itinerary for the use of one of the aircraft. The Office of Aeronautics' shuttle service may be used by any requesting individual authorized under state policy. However, use of the aircraft for any other trip (Scheduled Trip) requires the submission of an Air Travel Request approved by an office director or their designee. These trips can have more than one destination (leg). The list below indicates the priority given for use of MnDOT aircraft:
In order to secure an aircraft, as soon as travel aboard a state plane is apparent, contact an aircraft dispatcher who will assist you in making your flight arrangements. The dispatchers can be reached at 651/234-7222. When the flight is confirmed, any change in passengers or destinations must be made at this time. Guests may be included as passengers when conducting official state business and are requested by the reserving state agency. MnDOT will bill the agency for its proportionate share of costs. An Air Travel Request form must be completed, signed by an authorized person, and sent to the aircraft dispatcher before the flight takes place. Each office director and district engineer has designated individuals who are authorized to approve requests. An Air Travel Request form is mandatory for proper billing of individuals using either a state plane or a charter plane. Charges for MnDOT users are billed to a central budget account. The aircraft dispatcher will provide approximate cost for either a MnDOT plane or a charter plane. Other state agencies using MnDOT's aircraft service are billed for the air transportation service. Weekly shuttles fly on a set schedule to district offices in Bemidji/Detroit Lakes. The shuttle schedule can be found on our website. The Aeronautics aircraft dispatcher reserves shuttle seats for passengers on a first-come basis. Passengers are placed on standby when seating is not available. Confirmation of the shuttle is made two days before the flight. Any seat cancellations are offered to standby passengers. When seats are available on scheduled shuttles, other state agency employees requesting a seat are included on the flight. MnDOT does not charge other agencies for carrying their passengers on scheduled shuttle flights. During times of inclement weather a flight may need to be canceled. The name of a lead passenger and their cell phone number will be requested for each flight, and that person will be notified should a flight need to be canceled. The contact person will be responsible for notifying their fellow passengers. Passengers need to prearrange ground transportation with the MnDOT garage, appropriate district office or other agency at the destination point to ensure transportation upon arriving at their destination airport.
These are some of the advantages MnDOT's aircraft provide:
Making a decision on what type of travel should be used involves many considerations. While several benefits of MnDOT business aircraft are tangible and measurable, some are challenging to quantify precisely. Progressive management departments routinely consider all the costs and realistically value all the benefits of every travel option before deciding how to go. The value of employee time often exceeds its cost to the company by substantial margins, further increasing the importance of employee time saving. A study conducted by PRC Aviation produced values of 5.7 times the rate of a senior executive and 3.8 times the rate of a middle management/professionals salary to determine the exact hourly value that employee has to the organization. Subsequently, MnDOT, in a study of their own, determined that a multiplying factor for TW specialist should be included at the rate of 2.4 times their hourly and benefits rate. There would be those who would argue that no one person's worth is 5.7 times their salary. However, using a base salary multiplier of 2 could easily be defended as merely a loss of productive time while driving plus the time to accomplish the normal working tasks above that as a doubling of time. No matter which model is used, the fact remains that when a manager or other key person is away from their office, the contact time with other subordinates or peers is shortened and issues that need immediate attention must wait. This can cause projects to slow down if not just stop. Simply stated, business aviation helps a company obtain maximum productivity from its two most important assets - people and time. Schedules that require late night travel or longer-than-necessary trips often result in post-trip fatigue, damaging productivity in the day(s) after the trip. Because they facilitate efficient scheduling, MnDOT business aircraft minimize that loss. Under "personnel rightsizing initiatives", many organizations have rediscovered the need to maximize the productivity of fewer employees to accomplish greater amounts of work. Thus, every opportunity to take advantage of maximizing the ability of every employee to work has a major impact on the budget.
Employee productivity sustained en route to a business destination that is in a secure office environment, free from interruptions, distractions, or eavesdropping, can have substantial value to an employer. Many people who use automobiles find it difficult to read or write. They also have a hard time communicating from the front seat to the back seat of the vehicle. This is not the case in aircraft. Group productivity, maximized due to the common availability of club seating and tables, often is unique to business aircraft. Strategizing before meetings and debriefing afterwards are common practices facilitated and encouraged by MnDOT business aircraft cabin configurations. The private sector did a study in 2001 which concluded that "the use of business aircraft can and does contribute directly to the shareholder value by improving performance at every level". This can be transposed to the public sector as a value added to every tax payer in Minnesota.
The compound effect of increased productivity and saved travel time is that more can be accomplished in less time. Consequently, many companies attribute reductions in "cycle times" to projects being finished faster due to business aircraft use. Although challenging to quantify or attribute entirely to business aircraft use, this benefit often can be substantial.
The near-total scheduling flexibility inherent in MnDOT business aircraft-even changing itineraries en route can be a powerful asset. Since aircraft can arrive and depart on the passenger's schedule, typically waiting for them in the ordinary course of business, meetings can be moved up, moved back or extended without penalty, risk or unnecessary scheduling pressures. Overnight trips, in most situations, can be avoided. If managed proactively, this benefit will improve timely delivery of projects in a very efficient manner. This also adds to the ability of employees to carefully manage their "family time" before and after traditional business hours. This is very important to employees as a stable, supportive family can have an acute effect on employee morale and productivity. Scheduling trips that minimize time away from home can be a key benefit. In today's world of concern for "lost efficiencies", we as responsible managers of agencies must pro-actively take advantage of any tools that will make us more productive with reduced personnel resources. To meet this accountability challenge, using more effective tools for travel will overcome the downsizing pressures brought on by budgetary restrictions.
Using the preceding data, it is very feasible that travel by state aircraft is efficient, cost effective and timely. Most trips of 75 road miles or more would probably operate at economic capacity of the aircraft and in many cases be more cost effective. Air travel can present a very positive approach to reducing costs to the State. Under some circumstances, it may be appropriate to fly below economic capacity in order to facilitate the need of individuals at critical meetings when logistics could impede the ability to attend. However, in the end the mission of the Office of Aeronautics must remain to provide timely, safe and professional travel to all MnDOT Employees, other State Agencies, all elected State Officials and others doing business for the State.
A multiplier to adjust the base salary of middle management, professionals, administrators, and technical experts. Below Economic Capacity Aircraft is operating at a rate that exceeds the cost to operate a passenger car for the same trip Charter Flight A flight that is contracted with an outside carrier to provide service that aeronautics cannot provide at the requested time and date. Deadhead Aircraft is flown without passengers. Economic Capacity (EC) Aircraft is operating at a rate equal to or better then a passenger car could for the same trip. Full Capacity Indicates the aircraft operates with a full compliment of passengers and crew. This translates into: King Air B200B = 8 passengers/2 Pilots King Air C90 = 6 Passengers/2 Pilots Flight Time Flight time shall mean the total time from the moment the airplane first moves under its own power for the purpose of flight until the moment it comes to rest at the next point of landing. Leg One takeoff and landing within a trip that has more than one of these cycles. Required Maintenance Means inspection, overhaul, repair, preservations and the replacement of parts, but excludes preventive maintenance. Operating Cost The average cost of operating State aircraft per statute air miles Preventive Maintenance Means simple or minor preservative operations and the replacement of small standard parts not involving complex assembly operations. Scheduled Trip A flight that is requested at a time that the shuttle is not operating or the number of passengers dictates that type flight. Shuttle Flight Shuttle Flight is a flight operating biweekly to different locations, providing a system of travel that is cost effective for individuals or small groups. |