Charter Aircraft CostAircraft charter costs
Income from the charter of your aircraft when not in use can significantly reduce your operating expenses by up to 80 per cent, but aircraft possession and charter is not a viable commercial project. Knowing this, the justified answer is: "How much of my overhead can I cut by renting my jets?
" Depending on the make and type of aircraft, how much they are flying and how many charter they are accepting, the upcoming response to this particular issue will be different for each customer. Chartering is the response? Answering the questions "Should I charter my own aircraft to save money" is not a straightforward yes or no one.
To determine whether it is in your best interest to charter your aircraft requires an individual assessment of your destinations, flight plan, aircraft model and aircraft aging. Talking to customers who are interested in renting their own personal jets, I proceed in an uncomplicated manner. While some aircraft operators want a charter, others don't.
A charter is an ideal way to compensate for your aircraft's fix cost, regardless of how much or how little you use it. Provided a aircraft is properly charters, this extra flight will not reduce the aircraft's re-sale value. It is not everyone's business, however, to allow other folks to charter your aircraft, and it is important to debate both the positives and the negatives to ensure that everyone has the right expectation.
I regularly ask three different kinds of question to customers who want to charter their aircraft. "As a rule, the response is given in terms of the number of working days per year. An easy way to calculate your estimated flying time is to look at your most frequent travel locations and the number of flights you expect each year.
Next, include a unexpected travel allowance, resulting in an estimation of the expected overall amount of each year. An easy way to calculate your estimated amount of flights per year is to enumerate your most frequent travel locations and the number of flights you are expecting each year. Charter is probably a better choice if you want to fly with less than 150 hrs per year (if you are assessing strictly financial).
Any expenses arising from the possession of jets will never be fully refunded, regardless of how much charter you agree to. Why " is due to a large number of variables directly corresponding to the number of flight operating time. Typically a plane has a two-person flight team that can operate about 400 hrs per year.
They can deploy replacements, but at a per diem cost, and these charges can quickly accumulate. Mean annual cost of employing and training a commercial airliner is around US$200,000. When you charter $2,000 per minute from charter, after deducting the immediate running cost (the varying cost per minute caused by the flight of the jet), you must spend 100 flight minutes just to cover the additional cost of a third aviator.
As well as the need for more pilot aircraft, the cost of maintaining flights over 500 hrs per year will also rise. It is the make and type of jet - known as the "type" in the tradeplace - that play a crucial roll in deciding how much compensation you can get from the charter. A number of aircraft models have higher margin between charter rates and actual operational cost.
Contributing elements are consumption of fuels, cost of engines and reserve space for servicing, etc. In addition to running directly, there are fixes. In most cases, these charges do not vary depending on how much you are flying. When you don't spend enough flying time to reach the minimal Dollars fee, you still own the rest.
This example shows that the possibility to charter your aircraft and make the charter customers at least foot the bill for your engines is a real way to reduce your total overhead. Operators can require parameter for the particular charter they will be accepting, according to aircraft used. Note, however, that the same charterer who can charter your aircraft on a long trip must also take a shorter trip from occasion to occasion.
A higher rate of your aircraft than the standard can result in higher service charges and a lower value for your aircraft. Given so much information to consider about owning jets, it is important to have a highly skilled and knowledgeable staff working on your account. These often include an aircraft administration firm, an airline lawyer, as well as CPAs, a finance firm and an aircraft brokers.
Collectively, they offer an aircraft operator a comprehensive perspective on its assets and make sure that the owner's interests are upheld. It is the ultimate aim of aircraft owners to experience the exceptional liberty, versatility, speed, convenience and personal space that comes with having your own aircraft. Like everything else, the cost of property is important to consider, and the income from freighting your aircraft when not in use can significantly reduce your operating expenses without compromising the value of your aircraft.
The use of charter as a means of offsetting aircraft operating costs calls for meticulous thought and analyses, supported by an expert consulting group. There has been a significant increase in the popularity of chartering aircraft in recent years, and although an aircraft operator will never make a living if he owns an aircraft, today is an excellent opportunity to own a aircraft and take full benefit of the cost benefits that the aircraft offers for charter.
If you would like more information on aircraft ownership and cost of ownership, please contact one of our specialists or ask for a suggestion.