Ejm

[eyeamthechosen1]

My boss just looked at using another management company to put the aircraft on part 135. Here is what I learned:

1. You will need $50 million liability insurance. Most charter brokers require a $50 million liability. With out broker flights, you won't get enough work to actually offset the added costs. The additional coverage will run around $20,000 per $10 million in liability. A lot of part 91 aircraft have $5 million, so you might see an increase of $90,000

2. Management companies will charge between $1500 to $3000 per month for the privilege of being on their certificate. Then, they will likely give you 85% of what they bill the customer. That leaves you with an additional $18,000 or more in additional costs.

3. You will have to put your aircraft through a compliance inspection. This will probably run $6,000 or more. Add that to your additional costs.

4. You may or may not have to add equipment that you don't have now. I almost had to add a CVR, that would have been damn expensive.

5. Finally, your boss will have to give up control of his aircraft and only use it if the management company allows him. This is a result of a rule imposed by the FAA after a certain aircraft ran off the end of the runway in TEB. You probably remember that accident. So, the management company has authority over the owner.

6. You will have to quit your job and be hired by the management company. Now, that may be a bonus or a detriment, depending on your current job. On one hand, you may be able to be used on another aircraft if your aircraft gets sold. On the other hand, your benefits might be worse. In my case, it would have made no difference. I would have been paid exactly the same and I chose to get a larger salary over paid benefits because I believe that benefits me more.

When we looked at the numbers, it was hard to justify adding our aircraft to a 135. Rather, we have decided to wait out the economy and then, if needed, add a partner or two. Adding a partner may be a much better option for your owner than putting the aircraft on a charter certificate.

When I start making millions and I want to have a flight department I'll send you a pm. LOL I got more information in your post than I did sitting in Aviation Management class. Nice info.

 

[CALRepublic]

CAL....

The answer to your first question is....since we are charter managed we are not considered true employees of EJM. Therefore, we have the benefits that the A/C owner provides. We do get full support from EJM during charter flights as far as trip briefings, flight following, maintenance, etc. Also, we get all of the operational benefits of being a NetJets company - fuel prices, low landing and handling fees, FSI discounts, etc.

The full managed accounts are considered full-time EJM employees and receive the appropriate full-time benefits.

As far as # of planes on certificate - I know the number in early December was around 185 and growing.

Hope that helps....

Thax bud, it does help....Not that you care but my best friend just left Frontier to go there and fly a Sovereign. EJM will buy him the type, he's going to FSI tomorrow.

 

[NotFurloughed]

I definitely care....

Anytime somebody lands a job in this miserable economy it's music to my ears.

He's going to love EJM.