Charter Rates - BE-200

[cvsfly]

What rates does your company charge for the King Air 200 (late model) or comparable aircraft? Also if you have rates for any comparable light jets. Our company, I think is getting out of bounds with some of the pricing. They charge a base rate with FET and state tax added, and a Fuel Surcharge with State tax added and wait time with FET and State tax added. 7 years ago base was $1000/hr with no fuel surcharge. Now it is $1175/hr and $250/hr fuel surcharge. I've argued the fuel surcharge based on an initial assumption that our fuel cost years ago was about $300/hr. Right now our fuel cost is at about $410/hr average for the year so far (expensive $4.75/gal based rate). That suggests they are asking $550/hr for fuel. Total rate is $1605/hr. Wait time is based on a maximum of 14 hrs x $75/hr (6am-8pm) or fraction thereof with intial 2 hrs free. How does your company handle the State and FET on various charges to include expenses. Their advice came from their CPA and NBAA references. Do you quote with all taxes itemized or do you keep it simple with one final figure? Do you charge meal and overnight expenses as pass through charges or do you have a set overnight fee? Charter is not the main business - it is supposed to just supplement the corporate flying (still under utilized at 300 hrs/yr). I'm thinking they are trying to recoup a majority of their operational expenses and not staying competitive with the rest of the charter market. Need input please. I've seen the ads in "Charter Hub" and other publications, but not sure if rates are generally inclusive of taxes and surcharges.

 

[cvsfly]

I think the censorship program needs a little work.