Inter-departmental Charge Backs
 

Hi all. Was curious to know how other departments handle charge backs for aircraft usage - if at all. We currently "charge" an hourly rate, that users of the plane need to budget for. We are in a period where we are trying to find ways to encourage usage outside of the executive office, and are frequently told "it costs too much". We have considered lowering our rate, or possibly eliminating chargebacks and assigning buckets of hours to the different organizations throughout the business. Ultimately, the money all comes from one place, and we know we need to be mindful of frivolous usage, but wanted to see what other folks were doing. Thanks!

I used to work for a large company that utilized everything from Lear 45's to Globals. They kind of ran into the same situation you speak of. The decision came down to charge "by the seat" and open it up to everyone middle management up. Almost never had an empty seat moving forward. FYI, this was a privately held company.

We treat our flight department as a corporate operational expense. As such, we allocate the expenses prorata to each department.