Here is some business savvy realism for your little fantasy world:
IT MAKES NO DIFFERENCE WHAT THE CLIENT IS WORTH......! Client net worth doesn't generate profits. What matters is how much revenue is generated on a given flight. (Quoted from page 1 of this thread)
My Comments:
I am not an MBA, CPA, or transactional attorney. Nor am I affiliated in any way with a fractional. I was wondering, though, if revenue per flight is quite the measurement with fractionals as it is with airlines or with a "pay as you fly" 135 operation, etc. The number of pax/cargo on board multiplied by the fares paid by each would work for a "pay as you fly" operation. But a fractional's revenue stream includes initiation fees, monthly/annual fees (all very substantial) and, lastly, per flight hour revenues. To take an extreme example, take an owner paying $1M of revenue into the fractional in Year X who flies one time in Year X. Is the revenue generated by that one flight measured solely by the flight time-based revenue? I would think that how much revenue is generated by flight time-based revenues is only one revenue consideration in assessing a fractional's actual or projected profitability. Actually, it's probably a pretty complicated accounting scenario. So, while the passenger's ("owner's") net worth is not a measure of the fractional's profitability, that owner's usage-based revenue is not the only revenue stream attributable to him by the fractional (the aforementioned monthly/annual fees, etc.) Would be interesting to hear from a qualified individual on the interplay of these factors in assessing company revenues and profitability, and, if at all, crew compensation.
As for this thread, wow, it is intensely personal for some. It went astray with details of particular pilots' backgrounds, family environments, career choices, etc. It is an otherwise interesting subject: how the fractionals are faring, how revenues and profitability are evaluated for this particular business model, and the current NetJets situation in particular.