Aircraft management pricing

[rjpilot7667]

I am getting a midsized jet aircraft (with a bunch of partners). I've had a few proposals for management come my way and I'm Interested in how they are pricing, because they are very different. Anyone know how they derive numbers for management pricing? We only want it under part 91 for now.

Thanks in advance for your expertise.

 

[CorpCaptain]

What type of services provided are included? Big differences in a basic contract (Hangar) and a full service contract.

 

[rjpilot7667]

What type of services provided are included? Big differences in a basic contract (Hangar) and a full service contract.

Full service including crews, hangar, pilots, mx, and scheduling.

 

[Gulfstream 200]

Part 91? - hire a few good guys, treat and pay them well... and they will manage your asset far better than any "management" company that is ripping you off blind left and right.

 

[rjpilot7667]

Part 91? - hire a few good guys, treat and pay them well... and they will manage your asset far better than any "management" company that is ripping you off blind left and right.

Thats a good idea but then we have people to manage and we want to stay way from that. Too many chiefs not enough indians kind of thing.

 

[guido411]

Thats a good idea but then we have people to manage and we want to stay way from that. Too many chiefs not enough indians kind of thing.

I'm with G200, hire a few GOOD (read experienced with your type of setup) pilots and there won't be much to manage on the people side. Pay them on time, throw them a raise or bonus now and them, make sure they have their health insurance and they'll treat your asset like it's theirs.

Curious, with a handle like "rjpilot", are you BS-ing us all or do you know something the rest of us don't? Not many RJ pilots I know can afford to buy a midsize jet. Mind sharing your secrets?

 

[rjpilot7667]

I'm with G200, hire a few GOOD (read experienced with your type of setup) pilots and there won't be much to manage on the people side. Pay them on time, throw them a raise or bonus now and them, make sure they have their health insurance and they'll treat your asset like it's theirs.

Curious, with a handle like "rjpilot", are you BS-ing us all or do you know something the rest of us don't? Not many RJ pilots I know can afford to buy a midsize jet. Mind sharing your secrets?

LOL, figured someone would ask that. I've had the SN for many years, when I used to fly RJ's. I still fly and have a few businesses.

I also have 8 other high net worth partners and as for the jet we got a good deal. We think we can sell it in a few years for a profit.

Check put this months pro pilot. Small and mid jet market is still very depressed. Lots of poor rich people out there and we are taking advantage of it. as for the secret.... Have rich friends and don't shy away from opportunity.

 

[Gulfstream 200]

Thats a good idea but then we have people to manage and we want to stay way from that. Too many chiefs not enough indians kind of thing.

If you think you dont have to "manage" your Managememt Company full time.....you are in for a real shocker.They are all crooks.

Nobody looks after your asset more than someone dependent on it for a good living and who answers directly to you.

Either way, its honestly just my .02 from being involved in both sides -good luck with the venture!

 

[landlover]

You see it time and time again, people are smart enough to earn the amount of money to buy a private jet. Yet they aren't smart enough to realize they are getting ripped off by a "management" company. I'm sure ego has a big part to do with it, I guess they don't like to admit they are wrong to begin with.

 

[bizjet800]

Eight partners? That sounds like a lot. The things management companies can save you on is fleet discounts such as fuel, sim training, insurance, maintenance etc. In some cases, this can save quite a bit. Of course they charge a fee to accomplish this but its usually worth it.

My advice would be to put this plane under a good certificate (yes, there is such a thing) to get the fleet discounts, and like others have said, hire a good captain to oversee the costs of the operation. Another thing I would do is hire a full time mechanic. This usually pays for itself many times over when it comes to big inspections. If you have a good mechanic and pilot manager, you'll be fine.