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Hey Fred, Lose Those Expensive Corporate Jets..We're Broke!!
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<blockquote data-quote="Ricochet1a" data-source="post: 1000040" data-attributes="member: 22880"><p>The operating costs for the Learjets comes to about $2300/hr</p><p></p><p>The cost for the Challengers comes to about $4300/hr (I believe this figure includes costs of aircrew).</p><p></p><p>The cost for the Global Express comes to about $3400/hr.</p><p></p><p>Both the Challengers and Global Express are far larger than the "typical" business exec jet, thus their higher operating costs. I don't believe that the figures for the Lears and Global Express includes aircrew expense, which amounts to between $350 and $400 per flight hour (all costs incurred, including benefit costs, per diem, aircrew lodging, etc.). </p><p></p><p>Most of these types of jets fly for between 300 and 600 hours per year (depending on utilization loads). If one uses an average of 500 flight hours per year, a cost for the fleet comes to:</p><p></p><p>7x Lears = $9.1 million</p><p></p><p>3x Challengers = $6.45 million</p><p></p><p>1x Global Express = $1.9 million</p><p></p><p>Total "guess-timate" annual cost of fleet = $17.45 million (this could be off, depending on just how much they fly)</p><p></p><p>For a multi-billion dollar corporation, this is peanuts. This cost though, is almost purely aimed at getting political favor. The "charge" for politicos to use the fleet has to be deducted from the total operating expense, but I'd be surprised if this came to $5 million a year - leaving a net expense to Express of somewhere around $12 million a year. </p><p></p><p><em>It would be interesting if Express broke out the cost of the fleet as a separate item in their annual operating report...</em></p><p><em></em></p><p><em></em>So Fred ends up paying just over $10 million a year out of Express' pocket - in order to keep from paying the wage employees upwards of $500 million a year in additional wage and benefit expense.</p><p></p><p>From a purely business standpoint, accepting an annual expense of $10 million to prevent incurring an expense of potentially upwards of $500 million a year is a proverbial no-brainer.</p><p></p><p>Remember... Fred cares about you very much and will become very angry should one of his fellow execs suggest something to the contrary.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 1000040, member: 22880"] The operating costs for the Learjets comes to about $2300/hr The cost for the Challengers comes to about $4300/hr (I believe this figure includes costs of aircrew). The cost for the Global Express comes to about $3400/hr. Both the Challengers and Global Express are far larger than the "typical" business exec jet, thus their higher operating costs. I don't believe that the figures for the Lears and Global Express includes aircrew expense, which amounts to between $350 and $400 per flight hour (all costs incurred, including benefit costs, per diem, aircrew lodging, etc.). Most of these types of jets fly for between 300 and 600 hours per year (depending on utilization loads). If one uses an average of 500 flight hours per year, a cost for the fleet comes to: 7x Lears = $9.1 million 3x Challengers = $6.45 million 1x Global Express = $1.9 million Total "guess-timate" annual cost of fleet = $17.45 million (this could be off, depending on just how much they fly) For a multi-billion dollar corporation, this is peanuts. This cost though, is almost purely aimed at getting political favor. The "charge" for politicos to use the fleet has to be deducted from the total operating expense, but I'd be surprised if this came to $5 million a year - leaving a net expense to Express of somewhere around $12 million a year. [I]It would be interesting if Express broke out the cost of the fleet as a separate item in their annual operating report... [/I]So Fred ends up paying just over $10 million a year out of Express' pocket - in order to keep from paying the wage employees upwards of $500 million a year in additional wage and benefit expense. From a purely business standpoint, accepting an annual expense of $10 million to prevent incurring an expense of potentially upwards of $500 million a year is a proverbial no-brainer. Remember... Fred cares about you very much and will become very angry should one of his fellow execs suggest something to the contrary. [/QUOTE]
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