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Owning vs. charter vs. airlines



 
 
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  #1  
Old April 1st 05, 04:23 PM
Mike Rapoport
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"Scott Jensen" wrote in message
...
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?


The economic justification for business jets is that they can save very
valuable time of highly paid executives. It never makes sense on a cost per
mile basis.

Mike
MU-2


  #2  
Old April 2nd 05, 01:24 AM
Adam Weiss
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Mike Rapoport wrote:
"Scott Jensen" wrote in message
...

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?



The economic justification for business jets is that they can save very
valuable time of highly paid executives. It never makes sense on a cost per
mile basis.

Mike
MU-2



Add to that marketing (or lobbying) value. What better way to win over
a b2b client's business or a congressman's vote than to give them a free
ride in a corporate jet?

  #3  
Old April 2nd 05, 09:20 AM
Scott Jensen
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"Adam Weiss" wrote:
Add to that marketing (or lobbying) value. What better
way to win over a b2b client's business or a congressman's
vote than to give them a free ride in a corporate jet?


Now I would think this is a very good point. If the Fiji business were
needing to impress a little over 200 clients a year and these clients would
always want to travel to the business' location to personally inspect the
facilities, wouldn't a private jet greatly assist in this? The clients
being from all over the globe and at least half not from a major city. Each
client would always be accompanied by two assistants on these inspection
trips. However, they could be grouped together to come with other
three-person client groups and all these scheduled well in advance.

Also, each year the company would fly in its Board of Directors and they
would be spread over different continents. Wouldn't offering to fly them in
on the company's private jet be another enticement for them to want to sit
on the board? Or at least make the hassle of the trip less of a hassle thus
not as big of a negative against them joining the board?

Then again, would offering to fly the above two groups first-class be just
as good of a way to impress them?

And what about offering employees the option of trading in their four annual
vacation coach-class round-trip anywhere-in-the-world airline tickets for
one first-class round-trip anywhere-in-the-world airline ticket? Or, saying
it was going their way to do one of the above two types of trips, one
round-trip flight in the corporate jet? If they decide to take just one
vacation a year, I could see them trading up for this.

Scott Jensen
--
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If so, Private Eye Butterfly is the webcomic for you!
http://www.users.bigpond.com/toonerfish/peb.html


 




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