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This section has useful advice, vital information and the latest reports; and could well save you money.
Last month I started on the seven mistakes people make with operating costs, including Mistake #1: It's all about the acquisition cost; Mistake #2: You can't make much impact on the costs; and Mistake #3: Not tracking costs in sufficient detail. While those were the ‘big three’, the following are also worthy of your attention.
- Author:Bill Stine
Your organization has purchased a new business jet capable of completing long-distance, international flights. You've hired an experienced pilot with loads of domestic flying hours and now feel you're ready to head for Europe, South America or wherever the need for an overseas trip may arise - right?
It should go without saying that you should maintain your aircraft. A well-maintained aircraft will always have a higher residual value than one that is not. Well-maintained in this case refers to an aircraft that is maintained beyond what the minimum regulatory standards require.
One + One = Two… except for large values of one. That math joke refers to rounding off numbers. When rounding off to whole numbers, we usually round to the nearest value. So 1.45 rounds off to 1 while 1.55 rounds off to 2. So 1.45 + 1.45 = 2.90 which itself rounds off to 3, unless you round off early and incorrectly. Then 1.45 rounds off to 1 and you get 1 + 1 = (in this case) 3. I didn't say it was a great math joke, but it helps illustrate the trouble we can get into with numbers.
As we bask in the Summer of 2010, the economic news continues to show glimmers of hope. While all the indicators are not positive, we can safely say we are in more of a recovery mode than crisis management mode. As business rebounds, now is the time to take a look at those aircraft upgrades or improvements that you have delayed or canceled until further notice.
Our company founder used to joke that statistics are like a bikini, what they reveal is interesting but what they cover up is vital. So it is with aircraft costs and how those of us in aviation compare them. We've done many benchmark reports and analyzed the costs of hundreds of aircraft. It is vital to understand exactly what went into the number that you have.
I get a weekly newsletter that updates me on the overall economy and state of the US stock markets. In it are always tidbits of financial advice. In a recent update, it discussed how to advise your children or grandchildren when they ask about getting a loan to buy their first home. After I read it, I thought that it applied very nicely to the acquisition of a first aircraft: In both cases the buyer is likely unfamiliar with the process, and whether or not they can even get funding.
- Author:Jeremy Cox
The phrases: "Fuel Economy," "Efficiency," and "Business Jet" when juxtaposed together with each other truly creates an oxymoron. The whole point of owning and utilizing a Business Jet is to enable, safe, secure, private and fast 'point-to-point' transportation. "Fast" is a key component here. Unfortunately "fast" does not equal “fuel economy.”
In cockpit communications, we need to speak clearly and concisely so that any pilot or controller can understand what is said. "Taxi to Runway 18" is not clearance to taxi onto runway 18. In the business world, we also need to communicate clearly. Major decisions can go awry because of misunderstandings.
My car just turned one year old. A look at the odometer shows 19,527 miles. When I got the car, a lease was not a good option for me as I tend to put a lot of miles on it - the lease payments escalate with the miles driven. My partner, Nel, just leased her car. Driving under 6,000 miles a year, she was smart. We both made automotive decisions appropriate for us.