Cost of Jet OwnershipCosts of jet operation
Privatjet: operating costs
Possession of a personal jet is a life-changing factor for a company or property that allows them to choose when to go. Offering from A to D trips in a way no carrier can reach, which saves valuable air traffic hours, increases efficiency, ensures safe operation, maximizes safe operation and becomes a dependable and effective asset for a busier person.
We believe in transparency at Av8jet towards property developers who often invest in an investment in the billions but have little idea of how to run it or what it should cost. Some may not necessarily understand the real costs, but for those who need to know, we can help!
Advising companies on operational expenses is one of our common consulting services. It is understandable that certain individuals want to enter into ownership with open-eyedness! In addition to fuels, landings, crew, we have the challenging job of assessing your aircraft's cost of maintaining it. Conklin & Decker, a well-known sector resources, releases hourly service cost figures, which include figures for aircraft parts, labor and powerplant reserve for each mode.
These figures, however, come from the manufacturer and are calculated using the cost of maintaining new, guaranteed airplanes with U.S. kits and servicing at a dedicated OEM servicing center. We consider these figures for a used jet to be almost insignificant for the actual cost of maintaining a jet, except that they could be used as a very rough estimate of the comparative cost between different jet models, but little more.
It is frustrating that there are hardly any studies on the rising cost of jet engine upkeep. Some research for the U.S. Air Force in 2006, however, showed that the airplane's airworthiness has a significant impact on the cost of maintaining it. In the first six years of an aircraft's lifecycle, the mean yearly growth rates of service cost increased by 17%.
Thereafter, this aging effect mirrors aeroplanes excluded from the guarantee and overall the periodical service life increases. A 3.5 per cent per annum ageing effect was found for ripe planes 6-12 years old and, fascinatingly, an ageing effect of 0.7 per cent zero was calculated for planes over 12 years old.
You can subdivide the servicing work into various different tasks. Frequently, the aircraft's CAO uses a computerized on-line tracker to create a success story for each individual job. Line maintanance includes the elimination of warranties and non-warranties, smaller regular inspection visits, updates to your computer database, smaller upgrade work and daily servicing of your airplanes.
Often, this line work is concluded at the home location to prevent position cost. In addition, many parts (e.g. fire Extinguisher, locating transmitters) have their own service cycles, which do not necessarily correspond to a given frequency, which is why we call these parts "phase-shifted".
At predefined distances, your airplane requires extensive preventive security controls. Floor care removes the panel, and this is often the case when it detects rust that cannot go without treatment. Maintaining the basis requires a considerable amount of work and must be carried out in an authorised, well-equipped hanger. It may be necessary to travel to your selected service point based on your location, as not all airports have the right equipment.
There is no doubt that the reconditioning and the longer period of basic service lead to an increase in the cost of servicing. In the course of the years, new space demands will require aircrafts to be equipped with the latest communication, navigation and monitoring devices and, as an option, operators can equip themselves with their satellite communication and leisure facilities to improve access to the cabins.
If you take all the above points into consideration, you will end up with a cost structure that will increase over a period of your life, but is also very sharp. Below is an example of a cost graph over time: Now, you can see from the graph above that the costs increase after the guarantee period has expired and that there are some rather unwanted peaks afterwards.
The total cost per lesson for an operator therefore depends on the timeframe taken into account and the flying lessons taken during that timeframe, and can be noticeably different for two operators of the same plane just because they own it at different lesson periods. Knowing the actual state of a particular plane, checking the record and having a set and known operating time, we can start to assess the cost of maintaining it.
However, there will always be new, unfamiliar change requests, rust and unplanned deficiencies, and any estimates will only have budget implications. All of these after market service plans are designed to address both planned and unplanned service incidents, theoretically avoiding unexpected surprise.... or is it? One of the oldest and most respected of these engines is the Honeywell Service Plan (MSP), first introduced in 1976.
The MSP was developed to reduce the operating and service cost of the Honeywell TFE731, which is built into every Hawker. To a large extent, these programs are an unplanned downtime policy and a savings account for the cost of overhauling in several thousand flying lessons, which the owners receive for a charge per flying lesson and per motor.
Therefore, these programs help the operators to forecast their service cost, avoid unanticipated expenditures and compensate for the high cost. Planned and unplanned service work is usually included, as are the cost of replacing lifecycle-limited equipment, some service bulletins. MSP is also portable at the moment of purchase of the aeroplane.
The value of non-MSP aeroplanes may also be significantly lower. But there are some catch and we help the owner to show them.