Business criteria for selection of an aircraft

Article Analysis

Article Title: Robustness Consideration in Multi-Criteria Decision Making to an Aircraft Selection Problem

Aviation has been a critical element within the transportation infrastructure around the world. Here, the aviation industry has helped to expand the concept of globalization around the world. Aviation, for example, allows for the transportation of goods and services around the world in a cost-effective manner. The industry alleviates many of the concerns related to geographic or location-based restrictions around commerce. As a result, the industry overall can much more efficiently transport goods and services across borders, thus enabling global trade.

As the article illustrates, aircraft selection is now becoming a much more critical element within the overall business functions of many organizations. More companies are now relying on aviation as a means to exchange goods and services or to engage in business travel. The COVID-19 pandemic has significantly hindered this growth as businesses were shut down or heavily restricted. Likewise the emergence of competing technologies such as a zoom, Ring Central, or Microsoft Teams have alleviated the need for frequent business travel. As a result, firms must reassess how they determine when an aircraft is selected. In addition, they must use a predetermined consideration criterion to use to make better informed investment decisions. These considerations, according to the article can vary dramatically and require a comprehensive suite of analysis techniques (Downen, 2005).

One of the variables the article notes as important in the selection process is fuel prices. Unfortunately, fuel prices are a very volatile commodity. Here, prices can change dramatically causing a large shift in variable costs related to the operations of an aircraft. These variable costs can be particularly dramatic if travel needs increase over time due to increase business activity. As the article illustrates, many firms looking to purchase an aircraft must consider proper hedging strategies as a means of regulating fuel prices to a much more predictable manner (Sen, 1998).