Thread: Eagle News
View Single Post
Old 07-24-2009 | 11:17 AM
  #318  
Mason32
Gets Weekends Off
 
Joined: Jun 2008
Posts: 2,168
Likes: 0
From: Reclined
Default

Originally Posted by SebastianDesoto
I wonder how they come up with number. It has to cost more than that. Any insight?
It doesn't. It used to be on the release forms that listed the costs of the flight. if you watched it, it averaged about 1500 an hour. Sounds about right too... hourly costs are typically lower when there is a high untilization. I'm not surprised by it, our old flight school had the same issues. There were fixed costs, aircraft mortage, insurance and things like that, and some costs that were variable costs based on hours of use such as; fuel, oil, scheduled mx... and other costs like unscheduled mx, unscheduled repairs or replacements, engine overhaul.... etc.... Basically, the more the planes flew, the less it cost to own them on an hourly basis.

So, I'm not at all surprised that a 25 million jet, can be operated for 1500 per hour.... if the same aircraft were in private or corp use getting 1/3 the use it would run 4,500 per hour. So, when you see Legacy's being chartered for about 5,000 per hour (which they are), it tends to validate the principle as fairly accurate.

I'm sure it was a matter of aircraft aquisition costs, including averaged mx costs, together with costs per hour for crew, fuel, taxes, fees, and the prorated portions per hour of all ground people involved....

If I knew the full story, I'd be running the airline instead of sitting behind the windscreen.... but, I do know that long ago I had inquired what the item on the release meant, and a station manager flat out told me it was the cost to the airline to run that flight...

Since then, I am told the numbers no longer appear on the release.... However, being that gas is back around where it was, and nobody has obtained any real meaningful pay or benefit increases... I would say the numbers are still pretty close...

enough insight for ya?
Reply