Lease???

i know this makes me sound really stupid but when it says the lease rate of an aircraft i.e. the Bombardier Dash8-Q400A, is $100,000 does this mean per week or per month? if it is per week then how am i supposed to pay this off given that, according to the aircraft evaluation page, even a flight with 100% passenger loading will still only make about $4000-5000 profit on average and that doesn’t even factor in staff wages, maintenance etc. I feel like there is something I am missing here because I can’t see how its possible to be successful at all…

Hi,

The lease period is per week. Note that you will have multiple flights in the same week. On my ultra short haul flights, I make around $2000 per flight @ 33% margin. This includes all costs (except leasing for when the plane is not scheduled for a flight). I have 48 flights scheduled for this aircraft every week, giving me a surplus of $100,000 a week in profit.

Remember to change the seat type and price factor to get a better estimate.

For shorthaul routes, I find the Q400A as the most efficient aircraft. Yes, its a turboprop and has a low pax rating, and yes it flies a lot slower meaning less departures. But because of the low number of seats, you can usually charge a premium.

Hope that helps.

Saad

Hi,

the Aircraft Evaluation Page calculates (almost) all expenses per flight. And that does include staff wages, maintenance etc. ;)

So if it says that the profit per flight is 4000 dollar, profit will be 4000 dollar… per flight. On the left you can read the number of flights you can perform per week on the given route. If it says for example 28 flights, it means you can make two return flights per day on that route. If the plane flies these 28 flights, your profit will be 28 times 4000 dollar per week.

A few remarks though…

Crew: salaries for pilots and flight attendants. If you put extra flight attendants on your planes, salaries will be higher. And salaries for ground staff are not included.

Capital: is the leasing cost per flight. If the evaluation tool says you can per form 28 flights per week, capital cost wil be the leasing cost divided by 28.

On-board service: is not included in the calculations.

Maintenance: cost per flight if you use the standard maintenance contractor.

Flights per week: also if you use the standard maintenance contractor.

Jan