Owning vs. charter vs. airlines

"Alan Street" wrote in message
...
In article , Mike
wrote:

? On Fri, 1 Apr 2005 01:21:11 -0600, "Scott Jensen"
? wrote:
?
? There is usually a point where it is cheaper to do it yourself than
have
? someone else do it for you. What I'm wondering is what would that
point be
? when it comes to trans-world air travel. When does buying your own jet
and
? employing your own pilots make economic sense than using an airline?
Or
? will the airlines always be cheaper?
?
? More specifically, let's say you have a number of employees in Fiji.
Each
? gets four round-trip flights to anywhere in the world each year as part
of
? their benefit package. Most will want to use at least one of those for
the
? Christmas season to spend the holidays with family. There would also
be an
? expected heavier usage of their flight options during the summer. The
? question I have is: How many employees would one need to have where
buying a
? private jet and employing pilots would make economic sense? Would
there
? also be a span between these two options where chartering a private jet
? would make economic sense?
?
? Scott Jensen
?
? I am pretty sure that private jet ownership will lose in a pure cost
? comparison. However, to make a fair comparison, one would have to
? consider many factors. What is the passenger's time worth? Is there
? convenient regular scheduled service? etc. A round trip first class
? ticket from the US to Europe can be upwards of $10,000 if purchased at
? the last minute. Or you could buy your own Boeing Business Jet for
? $40,000,000. Even if only used for one trip, the BBJ could have a net
? lower cost. If the passenger takes the commercial flight for $10,000
? and the airline gets him there late and he loses the $4 billion dollar
? deal, then you can see why he would be better off spending the money
? for the BBJ.

$4 billion dollar deals are pretty rare.

And ones that get lost because you get there a day later are non-existant.

Mike
MU-2