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Aircraft management pricing

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Agreed. Sounds like an idea thought up by someone who drives around with their foglights on when it's not foggy.
 
There are many advantages to going with a big management company like CitationAir or NetJets. The majority of their growth over the last 2-3 years has been in the managed jet side of the business. They must be doing something right..
 
There are many advantages to going with a big management company like CitationAir or NetJets. The majority of their growth over the last 2-3 years has been in the managed jet side of the business. They must be doing something right..


List those "many advantages?"

We already settled the "save money on fuel and training" portion.
 
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.

Stay away from A/C Management Companies. They are notorious for ripping off clients. Remember you get what you pay for.



I suggest find the right people and have them form there own corporation managing your A/C.
 
What constitutes ripping someone off? Charging a fee for doing a job the owner doesn't want to do? There is a lot that goes into managing an aircraft from tracking maintenance to paying salaries and hangar rent to insurance. Some people just want to dump that off on someone and if they pay a fee for it they are fine with it.

I'm not saying all management companies are honest, but it does seem that some are accusing management companies of being crooked for doing a job the owner wants to delegate. If these owners want to delegate, then let them delegate.

I've not priced many aircraft, but I know the last individual I worked for wanted to charter the aircraft and so he looked into management companies. They ranged from $1500 to $3000 for a 16,000 lb turbo prop (plus expenses like the pilot and hangar). I imagine that the larger the aircraft, the more you'll pay, but I don't know that for a fact.
 
What constitutes ripping someone off? Charging a fee for doing a job the owner doesn't want to do? There is a lot that goes into managing an aircraft from tracking maintenance to paying salaries and hangar rent to insurance. Some people just want to dump that off on someone and if they pay a fee for it they are fine with it.

I'm not saying all management companies are honest, but it does seem that some are accusing management companies of being crooked for doing a job the owner wants to delegate. If these owners want to delegate, then let them delegate.

I've not priced many aircraft, but I know the last individual I worked for wanted to charter the aircraft and so he looked into management companies. They ranged from $1500 to $3000 for a 16,000 lb turbo prop (plus expenses like the pilot and hangar). I imagine that the larger the aircraft, the more you'll pay, but I don't know that for a fact.

I'm not questioning your ethics personally, but the vast majority of these management companies are run by scoundrels.
 
OK Here we go.

What's your evidence?

OK here we go.

Client pays for hanger and a/c is left out in the sun or bad weather.

Charge client 85K and want to pay the pilot 50k.

Fudge insurance records to get (20k) gear draggers insurable.

Offer clients a cheaper alternative by doing pencil whipped SIC type ratings at the FSDO when no training was ever conducted.

Having crew conduct international flights with no handler.

If mx is in house, robbing the client on labor.

Bending all the rules including safety to keep the client happy. Example. "Left tube is out, just run a reversion. Now go fly into TEB with bad weather!"

Let me know if you need more examples.
 
Lets get back to the fact that there's gonna be multiple owners. Just wait till that Jet goes in for a "C" check?
 

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