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Who
Operates Business Aircraft
•
10,000
US companies own and operate 17,000 turbine-power aircraft as an
aid to business
•
35,000
additional companies own and operate piston-powered aircraft as
an aid to business
•
Thousands
more operate aircraft via charter, lease, time-share, joint ownership,
and other options
•
They're
commonly top performers year-in/year-out, 90% of fortune 500 "Honor
Roll" list operate business aircraft
Airline
Business Passengers up 4.1%/yr. 2x in 20 Years
Corporate
Flight Departments up 5.6%/yr. 3x in 20 Years
Why
Use Business Aviation
The
pace of business is accelerating
•
Performance:
pressure to maximize
•
Productivity
& Efficiency: intensely scrutinized
•
Rightsizing
and Downsizing initiatives: pervasive, normal
•
Business processes: It's "the age of rethinking" sometimes
often
•
Staffs: leaner, more expensive, more expected
•
Customers:
more sophisticated, demanding, challenging
•
Competition: increasingly fierce, worldwide
Companies
Are Changing - Rapidly
•
Corporate missions: are being revised, tweaked
•
Revised
missions: excitement, confusion angst
•
Company
activities: refocused to precisely support revised missions
•
Employee travel: reassessed to directly support refocused activities
•
"Best
practices" analysis: applied to employee travel
•
Travel
methods and attitudes: are being redefined
Concurrently,
A Communications Revolution is Underway, Unfinished
•
The
phone didn't replace letter-writing
•
Faxing
didn't replace FedEx
•
Video
conferencing hasn't replaced the airlines
•
Voice-mail/e-mail haven't replaced personal contact
•
The
internet hasn't replaced anything, yet
•
Nothing
will ever replace "face-to face"
"Face-to-Face"
- The Most Efficient & Effective Way to Communicate
•
Being there-being "on-site" - holds the potential to yield
the highest quantity & quality of information exchange possible
•
All
interactive senses involved…you can "smell" trouble
and opportunities
•
Sight
alone can yield massive amounts of data
•
Intimacy
and resulting insight possible from being on-site is maximized,
as trip value
•
Your
competitors are already there
Compare
the Cost
The cost comparisons below were done by comparing King
Air C90s and national 2003 averages. These charts are estimates
only. Cost can vary considerably with a heavier or lighter flight
schedule or different aircraft. Membership fees, standby time, overnights,
or monthly fixed costs were NOT included on total aircraft cost
in any of these charts. The costs are based on a 35, 50, 75, 100,
and 150 hour yearly flight schedule. Additional costs are flight
crew expenses (hotels, meals, etc.), landing fees, catering, rental
cars, etc.
|
Membership Share
|
1/16
|
1/8
|
1/4
|
1/2
|
3/4
|
Full
|
|
Days/Month**
|
1
|
3
|
6
|
12
|
18+
|
24+
|
|
Average Hrs/Year*
|
35
|
50
|
75
|
100
|
150+
|
200+
|
|
Average Hrs/Month*
|
2.9
|
4.2
|
6.3
|
8.3
|
-
|
-
|
|
Month Membership
|
$ 600.00
|
$ 1,200.00
|
$ 2,400.00
|
$ 4,800.00
|
call pricing
|
call pricing
|
|
Total Aircraft Cost
|
$ 2,770.83
|
$ 3,958.33
|
$ 5,937.50
|
$ 7,916.67
|
call pricing
|
call pricing
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* Flight
hours are not limited
** For a fee additional days can be added
|
Compare Charter
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|
|
|
|
|
Aircraft Hours/month
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2.9
|
4.2
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6.3
|
8.3
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|
Block Time
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0.6
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0.8
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1.0
|
1.3
|
|
Total Aircraft Hours
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3.5
|
5.0
|
7.3
|
9.6
|
|
Standby Time
|
$ 280.00
|
$ 840.00
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$ 1,680.00
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$ 3,360.00
|
|
Overnights
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$ -
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$ 1,000.00
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$ 2,500.00
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$ 5,500.00
|
|
Aircraft Cost
|
$ 3,325.00
|
$ 4,718.33
|
$ 6,887.50
|
$ 9,151.67
|
|
FET
|
$ 270.38
|
$ 416.88
|
$ 642.56
|
$ 938.38
|
|
Total Aircraft Cost*
|
$ 3,595.38
|
$ 5,135.21
|
$ 7,530.06
|
$10,090.04
|
*
Total aircraft cost does not include standby or overnight fees
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Compare Fractionals
|
|
1/16
|
1/8
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1/4
|
1/2
|
|
Initial Investment
|
N\A
|
$172,674.00
|
$345,348.00
|
$690,697.00
|
$1,381,395.00
|
|
Aircraft Hours/yr
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N\A
|
50
|
75
|
100
|
150
|
|
Average Hours/mo
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N\A
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4.2
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6.3
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8.3
|
12.5
|
|
Management Fee/mo
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N\A
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$ 4,350.00
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$ 6,525.00
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$ 8,700.00
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$ 13,050.00
|
|
Total Aircraft Cost
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N\A
|
$ 4,979.17
|
$ 7,468.75
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$ 9,958.33
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$ 14,937.50
|
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Total Monthly Cost
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N\A
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$ 9,329.17
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$ 13,993.75
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$ 18,658.33
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$ 27,987.50
|
|
Aircraft Ownership
|
|
|
|
|
|
|
Aircraft Hours/yr
|
35
|
50
|
75
|
100
|
150
|
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Average Hours/mo
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2.9
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4.2
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6.3
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8.3
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12.5
|
|
Initial Investment
|
$ 2,762,790
|
$2,762,790
|
$2,762,790
|
$2,762,790
|
$ 2,762,790
|
|
Fixed Cost/yr
|
$ 135,938
|
$ 135,938
|
$ 135,938
|
$ 135,938
|
$ 135,938
|
|
Fixed Cost/mo
|
$ 11,328.17
|
$11,328.17
|
$11,328.17
|
$11,328.17
|
$ 11,328.17
|
|
Total Aircraft Cost*
|
$ 1,723.75
|
$ 2,462.50
|
$ 3,693.75
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$ 4,925.00
|
$ 7,387.50
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* Total
aircraft cost does not include monthly fixed cost
A
Few Considerations on "How to Go"
•
A
perception that airlines travel is less expensive than travel by
business aircraft- a powerful motivator
•
An in-depth, real-time analysis of the actual cost of business travel
via three alternatives is complex and difficult to calculate
•
Tangible
benefits of business aircraft are difficult to track
•
Intangible benefits are easily measured
•
Consequently,
many companies can't accurately value the true cost of travel
•
Travel
decisions- how to go- becomes hunches
|
A
New Approach
•
We can
create a business travel decision matrix customized to your company's
own priorities and values.
•
Facilitate
a three-way comparison of true travel costs- the airline vs. two
defined alternatives, such as company aircraft and charter aircraft.
•
Illustrate
the most cost-effective way to travel on a dollars and cents basis,
from management's perspective.
•
Help
maximize employee efficiency and productivity.
•
Help
management manage smarter and better.
Andy
Profit, President and Chief Pilot, is committed to hiring
personnel that share his commitment, passion and knowledge for aviation.
Andy started his flying career in 1982 and has been building a very
impressive resume. Some of the highlights include:
Licenses,
certificates and ratings:
Airline
Transport Pilot License
Commercial Pilot license
Citation Type Ratings (CE 500)
Citation 500, 501, 501SP
Citation 550
Citation 560
Citation Type Rating (CE 525S)
CitationJet
CitationJet I
CitationJet II
CitationJet III
Lockheed
Jetstar (L-1390)
Jetstar
Jetstar II
Flight Instructor
Single-engine
Multi-engine
Instrument
Advanced Ground
Airframe and Powerplant License (A&P)
Experience
& Achievements:
22
years aviation experience
16 Years Flight Instructor
16 Years Corporate Pilot
14 Years Corporate Flight Department Manager
12 Years Aircraft Maintenance
10 Years Charter Pilot (FAA Part 135)
Over 10,000 Flight Hours without any Accidents, Incidents or Violations
Chief Flight Instructor (FAA Part 141 School)
Taught Aviation Safety (Truckee Meadows Community College)
Flightsafety Pro-Card
Call
us for how we can help you with your aviation needs.
Professional service, references available.
(336)
392-7017
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